If your accounts are already in collections, the damage to your credit is already done.

Total debt of 11k is not too bad, especially as your incomes will be rising substantially in less then a year.

Just go ahead and continue what you are doing. After your income increases, start paying off the debt. When you are ready to do so, contact the collectors and make the best deal you can with them. GET IT IN WRITING. Then pay as agreed. If they don’t give you a reasonable deal, tell them they get nothing for now and put them at the end of the line to get paid back.

First off 11k in debt is not really that bad. Just remember you didn’t accumulate that debt overnight so it will take some time to pay it off, especially given your current income. 11k of debt is not worth 7-10 years of bad credit due to a bankruptcy. I have to agree with Mysti on quitting school for now and take up another job or more hours at your current one. Also, try looking into Dave Ramsey’s debt snowball plan. It is real easy to follow and can be used with any income.

You seem like the type of citizens who would benefit from Chapter 7 bankruptcy petition. Hire an attorney because there are extensive asset and liability schedules to file. You have to find a bankruptcy lawyer who is familiar with amendments to the code, effective October 17, 2005.

Call all of your creditors and explain the situation. They would rather get some money from you than none at all. Tell them that you want to pay the account in full, but you are limited in what you can pay, due to unexpected circumstances. Offer to pay them a certain amount each month, if they could lower or eliminate the interest. If they are not willing to work with you, threaten bankruptcy.

If you actually have NO MONEY to pay on these debts, your only alternative, in my unprofessional opinion, is to file a chapter 7 bankruptcy. It will be on your record for 10 years, but at least you will be out from under a lot of debt, and have some peace of mind.

Best wishes, and God bless.

Hold out until you get out of school (depending on how much longer it will take). If your family and friends are comfortable with it, you could ask for a loan (no interest that way). After you finish night schooling I’m assuming you’ll be able to earn a larger salary.

30k between 2 people is not much. Get better paying jobs and you should make about 40 to 50 k anyway.
It sounds like you own nothing
So get an unlisted phone number so no one can call you about debts.
Then pay really small amounts on the bills you do get.. LIke $5 per month to show “good faith”
Eventually you will be out of debt.
No one can put you in jail in USA for owing money.

well the first answer was rather ignorant so I’ll come up with a much better one. I would suggest quitting school for the time being. If you’re spending money on tuition, you could use that towards your debt instead. If the tuition is free, I would advise to stop going to school still, so you do have the time to pick up a second job. You can always go to school later when you get yourselves back on your feet. I’m trying like mad to get out of debt as well, and putting in as much overtime as I can at work to do it.

hey im not joking truly try this… there was a woman who was 20k in dept and then she made a website (just as a joke at first) asking for money from people because she was in dept, then after a while many many people started to donate money to her. then after a short time she raised over the amount to pay off her dept. she thought it was so weird and she wondered if that was legal because she got the money so fast. but it was all perfectly legal……. this is a true story that i think happened a couple of years ago ( like 3)

i’d just rob a bank, maybe not bank, but something less risky that would still get you a good haul. Like a payday advance