Should I File BK Or Ignore Collection Agency

Question:
We have not made a payment on our credit card bills since end of 2001. We have no ability to pay off debt since it is over $50,000. We have several charge offs on our credit report already. There is not much stress in our life from collection agencies since we have simply ignored their letters and do not answer their phone calls since we have caller id. Since there is a statute of limitations on their right to sue and bad debts drop off after 7 years from credit report, is there any advantage to filing BK? We had intended to just ignore them and let this work itself out after 7 years. However after reading this newsgroup I am beginning to get the impression that our credit report might actually be better if we did claim bankruptcy. I would hate to wait 6.5 years and then have a collection agency sue and start this all over again. What is your opinion on this situation, should I file and get it over with, or wait it out?

Answer:
If there is no possibility of your getting a job, having a bank account, or needing to obtain credit in the future, filing bankruptch doesn't make sense. Otherwise... I have written a Bankruptcy FAQ which should answer many of your questions about what is involved--it may be found at http://users.erols.com/lawyer/FAQ/br_faq.htm. I strongly recommend speaking with a local bankruptcy attorney. Most offer free initial consultations and he or she should be able to review your specific situation and let you know what you can and can't do. If you're in Maryland, DC or Virginia, please let me know--we may be able to help.





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