Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Should I file bankruptcy? Or is that for different situations? - I am 27. I have 3 children. I have about $15,000 in debt. ($10,000 is in collections) $5,000 of that is what we owe on our vehicle that we pay on monthly. That was our first loan ever. My husbands debt is only about $3,000 in collections (and of course he is on the loan for the car)

We are low income. In our current situation, we would not be able to pay everything off within 5 years which is the time frame I wanted to accomplish this in.

Is filing chapter 7 more for people that have a ton more debt and own things like homes, cars, boats etc...? That can lose that stuff because of debt?

I am working with a collections agency that is also some kind of lawyers office? They threatened to take me to court over $500 from an original $3.00 overdraft from US bank. I was worried, even though I own nothing, and I wanted to start getting one thing at a time paid off. I have paid ALL in the last 3 months except $192.33. Some income that we were depending on to pay many things off and pay ou rmonthly bills just changed and now we have nothing. I explained that to them and they said Sorry -