file BK for debt of less than 5k?

[dragonkitty]

What is the name of your state? Indiana

i am desperately in need of advice since we cannot afford legal counsel (none near us will give us a free consultation).

my boyfriend has a debt of less than 5k that is several years old. his creditors have not filed suit against him yet, but they refuse to suspend the high interest rate that keeps racking up on the debt. i just had a baby and we are barely keeping our heads above water, paying for only necessities of life. they refuse to take small payments of $20-$50 a month since that does not even cover the new interest charges, and we absolutely cannot afford more than that right now. he wants to file BK to get out from under it so we can start fresh. would it be foolish for only 5k? and if so, anyone have any other recommendations for us?

thank you for any and all advice!

 

[bigun]

I wouldn't file over $5K. The SOL on cc debt in In. is 6 years. If you can't pay, just let the SOL run and hope you get lucky.
When did he last pay the orginal creditor?

 

[dragonkitty]

thank you for the reply bigun

the last time he paid on the debt was about 2 years ago--just before he got laid off. after that he bounced around working temp jobs until he was finally able to get a decent, reliable job a few months ago. by then we were already in over our heads due to me being off work with pregnancy complications. he explained the situation to his creditors, but they have been consistently unsympathetic--in fact, a creditor was the one who suggested that he file BK.

if he choses to try to wait out the SOL, is it possible to work on rebuilding his credit now (with secured CCs and the like)?