To file or not to file?! CLUELESS!

Okay....to start, ANY advice or thoughts on this would be greatly appreciated.

I am 22, I just got married 3 months ago and I am about $5,000 in debt from 2 credit cards, collections, and a judgement from a previous landlord (2 years ago) where I shared an apartment with a roommate while in school. ALl of this debt was incurred before I was married, will my husband have to be involved if I decide to file bankruptcy, which I am still unsure about and have been contemplating for some time now.

I am not in a ridiculous amount of debt, and I've been told that $5,000 is not worth bankruptcy? Is that true, would I be better off not to file? And if I decide to file, will it effect the things that I now have.....I am financing a '97 SUV, that I make regular payments on, and I have a '91 car that is paid for, 2 credit cards that I make regular payments on. I don't know much about bankruptcy, and I'm hoping that some of you out there will be able to help. I don't know what to do, and this situation has gotten to the point where it worries me ALL the time. Please if you have any thoughts or advice.....ANY and ALL will be appreciated.

Thank you!

[bigun]

I don't think bankruptcy is in your best interest.
First of all, you better believe it will affect your husband. Any attempt to get a mortgage or a car loan means his credit and income will have to carry the day. If you're history is included you two will receive subprime financing offers. A bk is on your credit file for 10 years for any lender or employer to see. After 10 years it is suppressed unless you apply for a loan of over $150k or apply for a job with a salary of $150k then, it will be disclosed.
I asume you have a job. May I suggest you sell one of the cars and start repaying. I'd start with the judgement first. That has the potential to cause serious problems the quickest. Don't try and repay piecemeal. SAve the money until you can repay a bill in full. Do so and move on to the next bill. Were I you, I'd find a 2nd job and get that 5k knocked out as fast as possible.
While you're about it, take a good look at your present budget and household finances. Is more going out than coming in? If so, you and hubby need to do some serious belt tightening.

Thank you so much for your help, I appreciate it more than you know because the thought of filing bankruptcy has me torn in so many different directions, it's almost unbearable. I've been told that filing bk for such a small amount being so young would hurt me, but then in the back of my mind I thought,"but so will all of these delinquent accounts" and I almost looked at it as an easy way out, which now I realize is SO far from the truth, thank you.

As far as taking a look at our budget, I'm scared to! Honestly, I know that there is more going out than there is coming in, and I don't know what to do or where to start to turn things around. I feel like I'm so far in over my head now that I can't breathe! I realize the debt in itself only 5k, which is hardly anything compared to some people's debt, but it's more than I want and when I add our monthly finances in to that, it's scarey! I would love to somehow cut our finances in half, or eliminate some of the unnecessary things, but I honestly don't know how. I've been trying to figure out how to get rid of our SUV,(that would cut $500 a month with the payment and insurance), but ofcourse, I owe more on that than what it's worth and I only bought it a year and a half ago. I don't know any other options....if you have any suggestions, I'm willing to consider anything. My husband and I are considering 2nd jobs to try to get my debt behind us, we've both realized that's going to be our best bet. Now, to get that behind us, and cut our budget to make sure it doesn't happen again.....

Thanks again for your help and if you have any advice, thoughts, suggestions to offer...please do, I can use all that I can get.

[bigun]

First of all, calm down. Let me give you another site I hang out in under another name. Go to [url]http://www.motleyfool.com.[/url] Hit discussion boards and then elect managing your finances and finally the consumer finance/credit card board. Post you situation over there and you'll get tons of ideas and a lot of support. They also have a Living Below Your Means Board that is good.
Your both very young and it is great that you've identfied a problem and are seeking help. Don't be afriad to put a pencil to your budget. That's the only way you'll find out the truth of your situation.

Thank you so much, for not only your advice but the moral support. (I think sometimes that's even more important than the answers themself)

I know I should calm down, like I said I even realize my debt is not outrageous, but I'm afraid if I don't figure out how to control my budget now, that it will be. And this is all new to me, my mother (nearly all my family) has near perfect if not perfect credit (my mother freaks if she pays a bill 2 days late), and she is just as clueless on this as me. I really do appreciate your help and I'm gonna check out this other board also and see about getting some ideas for budgeting...and maybe an idea of how to get rid of something (our SUV) that I can't afford, I'm surely not the only person that has ever needed to do that....

Well, thanks again for your help and should you have any more suggestions, feel free to pass them along.