Since there are many variables involved with such a decision, dependent upon your personal circumstances, perhaps, a good place to begin is with this Washington Courts webpage regarding bankruptcy, available here:

http://www.courts.wa.gov/forms/?fa=forms.contribut e&formid=4

While filing a bankruptcy petition is a federal court matter, this page provides excellent, trustworthy, and competent links to guide you through the thought process, as well as links to the federal procedure necessary for a successful bankruptcy filing, which MIGHT be accomplished without an attorney, again, depending upon your situation.

Good luck to you and thank you for your question.

You should get a lawyer before you decide anything as it will end up taking 7 years before you can get a loan for a house, car or anything big. Make sure you weigh all the options and really think about this and decide how long it ill take you to pay off your debts. If you come to the conclusion that it's going to take you longer than 7 years, get a bankruptcy attorney and see what your options are. Keep in mind that most bankruptcy attorneys will not charge you as much because they are aware of your situation and are used to dealing with people who are having financial difficulty.

The biggest drawback to filing bankruptcy is that it stays on your credit report for 7 to 10 years which can make it harder to get a loan, or you will only be able to get loans at a higher interest rate. However if you are not intending to take out any new financing in the next few years, then a bankruptcy could be an option for you that will provide the relief needed.

I personally think that a consultation with a bankruptcy attorney is very very helpful when you are trying to decide what to do. A bankruptcy attorney will look at your entire financial picture (all your assets and liabilities, and all your income and expenses). Attorneys will also make you aware of things that are not quite as obvious to the rest of us such as:

- what exemptions are available to you
- which chapter of bankruptcy you will have to file
- if you have any risk of the trustee trying to recover preferential transfers
- what debts may not be dischargeable

That being said, if you have minimal income (below the median income level for your household size for your state), you have minimal assets, and a large amount of unsecured debt, chances are you will be a good candidate for a chapter 7 case and it will be a solution for you that will bring you some relief.

I would recommend you find a good bankruptcy attorney and schedule an appointment for a consultation. Some attorneys give free consultations, however, those are not usually the experienced ones. It will be worth the $200 bucks or so you will have to pay to get the expert advice and be able to make an informed decision about what to do to. To me this is no different than going to a doctor when you are sick. Would you diagnose yourself? Probably not. The same goes for when you are financially sick. You will be able to make the best decision if you go see someone who has experience and expertise in bankruptcy law.

The best advice I can give to to seek the advice of an attorney in your area that practices BK law specifically. Most attorneys will offer you a FREE consultation and give you good advice - call and make an appointment, but make sure the initial visit is free. One huge mistake people often make is waiting to long. Don't wait until you have a bunch of lawsuits/collections etc. Go seek advice - I know its hard to face it, but the sooner you know your options, the better.

Personally $10,000 does not sound like a terribly high amount, but again with out all the details, its hard to recommend either way. Don't keep looking on the internet, wondering what to do, ignoring phone calls or letters because it will not go away. Call someone TODAY!

"Dont know why people dont do it more frequently."

because there are rules.

If you have medical bills, and are low income, apply for charity care at the hospital to reduce that bill first. Most hospitals enjoy tax free status because they are supposed to provide charity care to the poor in their community. They may make you jump through hoops to get it, but it's worth the effort to apply for it.

If the bills are deductibles and copays your health insurance doesn't cover, apply for Medicaid as a secondary insurance that will pay what yours can't, and do apply if you have no insurance at all. They may pay for unpaid medical you incur prior to applying, retroactively for a few months. Even if you don't qualify for Medicaid, your state may offer a sliding scale premium that you can afford to get yourself covered and avoid medical debt.

The problem with filing for bankruptcy is that you will still have financial issues if you don't address how you got into debt in the first place. $10,000 is not a horrific amount of debt, you'll most likely spend a few thousand on legal and court fees simply filing for bankruptcy-it's not free. Use that to pay down your debt instead, work out a plan to get it paid off in three years.

If you do decide to go the bankruptcy route, take a good and honest look at your circumstances to identify why you are in debt and figure out how you're going to reduce the risk of going into debtall over again. Reduce your expenses and increase your income. Get a second job, a smaller home, even moving to a place with a lower cost of living. If you have a low paying job where you are now, you may be able to find another low paying job and get more for your buck elsewhere.

You may be able to discharge the debt you have now, but if you mount more debt after that, bankruptcy is not an option to file for for a very long time. It's not always the proper solution. If any of your debt is back taxes, student loans, child support - those items aren't dischargable. The kind of debt you have matters.

One thing I would definitely do before filing for bankruptcy is go and talk to the financial aid people at the hospital they are usually very understanding and they will usually give you very lenient payback terms with a low interest or no interest rate. So if it's just this big bill from the hospital and you can somehow afford it and don't want your credit to be terrible go talk to them.