Do Nothing

• Freedom's just another word for nothing left to lose." Sometimes, the best approach for some people in debt is to take no action. If you live simply, with little income and property and you look forward to a similar life in the future, you may be "judgment proof." This means that anyone who sues you and obtains a court judgment won't be able to collect because you don't have anything they can legally take. You can't be jailed for not paying debts unless you are a tax protester or willfully failing to pay child support. A creditor cannot take away essentials like basic clothing, ordinary household furnishings, personal effects, food, Social Security, unemployment or public assistance.



• Your creditors probably won't sue you because it's unlikely they could collect the judgment. They may write off your debt and treat it as a deductible business loss for tax purposes. In several years, it will become legally uncollectible under state law. In seven years, it will come off your credit record.

Stop Harassment

• If your main concern is harassment from creditors, bankruptcy may not be the best way to stop the abuse. You can get creditors off your back by taking advantage of federal and state debt collection laws that protect you from abusive and harassing debt collector conduct.

Negotiate

• If you have some income or assets you are willing to sell, you may be better off negotiating with your creditors than filing for bankruptcy. Negotiation can buy you time to find your financial footing or you and your creditors may agree on a complete settlement of your debts for less than you owe.

Get Outside Help

• If you secretly agree with your creditors that they are right to insist full payment or if your creditors are so inflexible or irrational that you can't negotiate with them or don't want to try you can turn to a lawyer, a bankruptcy typing service or a nonprofit credit counselor such as Consumer Credit Counseling Service (www.nfcc.org) or Myvesta.org (www.myvesta.org).