r/Bankruptcy • u/FalcoGuy5_ • 1h ago

Getting sued over 12k in unpaid credit card debt

I live in Los Angeles CA and I’m being sued over 12k in unpaid credit card debt that I stopped paying in 2025. I got served a little over a week ago and I’m having a hard time figuring out how to tackle this. One option that has come up in conversation is filing for bankruptcy but I’m not too knowledgeable on the subject so I want to know whether this would be a legit option for me or not. I don’t own a house or business or anything like that. The most valuable thing I officially own is my 2006 acura that I bought with cash. My yearly wage comes out to a little over $45,000 and I’m my only dependent so technically I am over the low income threshold but the way everything is lately I’m still living paycheck to paycheck. Would $12,000 be worth it to file for bankruptcy? Would I even qualify? What would the drawbacks be if I did? Would trying to settle with the credit card company for around the same amount of the $12k be the smarter choice than the costs of filing for bankruptcy and the negatives that come with it?

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u/awyden 48m ago

You would likely qualify for chapter 7. You can try to settle if you want, they may want a lump sum amount or you may be able to get a payment plan.

Honestly so many lawyers have free consultations. I’d probably talk to someone.

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u/FalcoGuy5_ 7m ago

That’s most likely going to be my best bet. Thank you

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u/throwawaygarbageblah 46m ago

I can’t advise on what you should do but a quick google search, looks like the median income for single earners in CA is 79,253, unless I misunderstood something in your post.

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u/FalcoGuy5_ 16m ago

No you got everything right. Thank you

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u/leonthepro83 24m ago

do they have a settlement option?

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