I was recently terminated from my job in July and am having difficulty finding a new one, but in the meantime I have about $25K in credit card debt and not able to make payments. A credit counselor suggested bankruptcy, but I know the consequences of such action. However, without a job I have no money and I do plan to get one as soon as possible. So please don't tell me to get a job, I already know that and doing everything I can by applying for many different positions. But given my current situation, is bankruptcy my only choice and is it better to do when you are unemployed or have a job? I have also already tried to contact the creditors to negotiate the terms, but no luck since my credit is in such bad shape. Any suggestions?
I forgot to add something...will filing bankruptcy hurt my chances of getting hired for another job?

I would file for bankruptcy. Your credit is blown anyway, and it is a fallacy that you can never get a loan after bankruptcy. You can re-establish your credit, but it's going to take some time either way. I personally think that the credit card companies are predatory lenders. They deliberately extend credit to people who are high risk in order to reap the reward of late fees and interest payments for years on end. The interest rates that credit cards charge are higher than the rates the Chicago mob bosses charged. Usury laws were established to prevent the mob from doing this, but the big corporations get away with it. File for bankruptcy. It will cost you a couple grand to the lawyer, but then you won't have to look back or deal with harrassment. You'll be debt free (unless you keep a mortgage or a vehicle), but this gives you a good opportunity to re-start your life with sounder financial habits. Good luck. Employment and debt issues are second only to health problems in terms of stress. Stay cool.

Those credit agencies can arrange payment options for you with lower interest rates, but you'll still be paying for years to come. Some people feel a moral obligation to re-pay what was loaned to them, but I have so little respect for the business practices of these lenders that I wouldn't worry about that. You have to focus on what's best for you and your financial security.

Gather all your bills and go see a bankruptcy attorney. Listen to what he/she tells you. You can always elect not to file, but get some information so you can make a wise decision.

You need to get another job and get better credit counciling. It sounds like you quit school too. Bad Decision. You need to work your ass off and live an inexpensive life. Once you have them paid off get and education.

The other answers were great advice. I believe the new law requires you to re-pay either way eventually. Why ruin your credit for 7+ years. Get a new job and work your butt off! Good Luck!

Bankruptcy DEFINITELY WILL hurt your job application, as well as other reputations, if you file for bankruptcy at $25K, it shows that you're irresponsible in spending and unwilling to pay back $25-50K (after fees, interest, long term).

In contrast, do what you can do pay it back, your credit will come back and your life will be back together too.

I've never heard of a credit counselor telling anyone to go for broke. Bankruptsy is what they try to keep you from going through. Have you tried any of the credit counselors that actually work with your credit companies to pull you out of debt by pooling all your credit cards into one payment? They work with those companies to lower all your interest payments and even some of the premiums. I suggest you try one of those. We got completely out of debt that way oursleves several years ago. I know that there are even Christian based ones out there. The only one that's name comes off the top of my head right now is 'Credit Counselors of America' but you see the ad's for them all the time on TV. If one won't help you, don't dispair, go to another one until someone does. Read the information below from the Federal Trade Commission on how to pick a good company. Also the other site is one is the government list that lists approved credit companies according to state.

One thing, until you get a company, here is something that can help you keep from any law suits: As long as you are paying something to any company per month, even it is just a few dollars, they cannot prosecute you. It shows good intentions. Good luck.

Go to a , "Credit Counseling Service". They will help you with your problem.

I dont know, but $25K. You need a financial advisor. If you were my wife, I'd have to shoot myself.

Well it could be an option however there will be a charge of £485 - £150 court fee and £335 ORs deposit.
maybe you should consider different methods such as an IVA or a composition order with creditors??
Most people that do go bankrupt have debts of £12000 or more however you must take into account if you own your house or a car you will lose it. any questions let me know,