No. of Recommendations: 1
As everyone knows it is best to pay off your debts, but with that said some times people get themselves into situations where they just can't do it. Looking at the numbers you give it appears you are in that situation. I am assuming you are already doing damage to your credit report and probably will continue to do so if you continue down this path...with that said it may be time to consider bankruptcy. People will correctly tell you that it will ruin your credit report for years to come, but the question to ask yourself is are you already doing that and is there any other way out of the hole. If you do not have a rich kind relative the answer is probably not. If you do follow down the patch of bankruptcy it is important to realize that it is more important for you, then for people who did not declare, to save as much money as possible. People with good credit rattings can lean on a bank in hard times, but most likely you would not have that option for a considerable time in the future.

I would love to tell you the particular rules for bankruptcy in your state, but I do no know where you live or the rules they have there. Most states allow you to keep a car and "some" states even allow you to keep a primary residence (not all states do this although most people believe it to be so). The problem you will have is the value of the car is usually an issue (once again depends upon the state), but that's okay since a more practical car is really what you should be looking at. It sounds like you may have made purchases that could still be valuable beyond your car and if this is so it is likely that the credit card companies will request those items be sold and the proceeds go to them.

Bankruptcy is a harsh step, but people should not ignore it as a possible step due to social stigma. It is a valid action for many people, but should not be used as an easy way out. It appears that your situation may lend itself to this step. I wish you much luck and I hope you see another way out, but bankruptcy does allow you to get yourself out of a hole you dug which you can't get yourself out of.
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