Credit/bankruptcy

[Lendall]

I had very good credit until 4 months ago.  My college-age daughter was bitten by a tick and after several months of various doctors was diagnosed with Lyme.  She hasn't worked or gone to school since May when she was bit(she had a large rash on her leg after she removed the tick while on a weekend trip).

I'm spending all of my disposable income on doctors that the HMO doesn't cover, and supplements, and eating all chemical free food at home. We ARE having some success. I do massage therapy as my second job, and have moved my practice to my home to save office rent and be able to spend more time with my daughter so she won't be alone all the time.  

That has helped tremendously financially and has dropped my stress level as well. Her dad, who lives in another state, gives her some money to help with the extra expenses and her car insurance(just liability).

I am behind 4 months on my 4 credit cards, and will not be able to catch up in the near future.  I wrote these 4 companies a letter last week explaining my situation briefly. I have no idea what to expect. I do have a home, but with a second mortgage, a gov't program loan(that amortizes) and a 15 yr/4.5% refi that I did 2 years ago I have about $5,000 equity at this time. So selling would be pointless, and it's a very energy efficient house, and I do run my business out of it.

My question - If the companies charge these off(total of debt is $23K: 7300, 6400, 5200, and 1800) will they file suit against me? . . should I consider bankrupcy for this amount?  I have not done that before. Or, if they file suit, can I later pay the judgments off - sometimes they settle for less if it's lump sum?

25 years ago my husband's company failed and we had to pay off some debt later when our house sold . . . I have no idea what happens with unsecured debt these days.

Thank you.  I tried not to ramble and give pertinent(I hope) facts.  

[Nikolaj]

Hello: I am licensed to practice law in Michigan. If this is a Michigan matter I think I can help you. I would suggest that we talk by phone. Please contact me for a complimentary phone conference. You can contact me by phone or e-mail. Please remember to provide a phone number if I am not available when you call or if you send a response by e-mail. If this is not a Michigan matter I would encourage you to immediately contact an attorney in your state regarding this matter.  

I hope this helps.

Robert D. Mouradian

Attorney at Lawhttp://www.AAAALegalCenter.com

[email protected]

Office 248 737-3730