I've lived frugally all my life and the thought of doing this is awful to me, but I believe this is what I have to do. 

I've mentioned before on here that I've been sick for several years and unable to work.  My savings ran out and I started having to put things on credit cards.  I couldn't apply for disability because they couldn't figure out what was wrong, and I kept hoping I'd get better. (I had gotten sick in the past, gotten better and paid off all medical bills, etc. so it wasn't an unreasonable assumption.)  Now they know what's wrong and it turns out I'm only going to get worse or at best stay the same.  In the meantime, I only charged necessities, but over several years, even necessities add up to quite a bit.  Then they decided to up my interest rate to a ridiculous amount because, even though I mailed it with plenty of time, a bill arrived a day late. What started out as something I could pay off if I got better suddenly became impossible, even if I miraculously were able to work full-time.  (I'm single, so it's just me.)

The only assets I have are my furniture.  I live in a house that my parents own (that I was supposed to be renting from them but they've let me stay free since I couldn't work).  They've also loaned me a car. 

Do I need a lawyer to declare bankruptcy and if so, what is the best, most frugal way to get a good one?

Yes, you need a lawyer. look in the phone book...there are lawyers that specialize in bankruptcy, usually around 750-$1000. Try a credit counselor first, then bankruptcy as a last resort. If you have anything to keep, like a house or cars that have loans/mortgages, you can file paperwork declaring you are keeping them and retaining and paying the loans.

Yes, you need a lawyer IF bankruptcy is the only option. Looking in a phone book is an option--and look for an attorney that has built his/her practice around bankruptcy specifically-- but I would also recommend getting a referral from anyone you know who has gone through bankruptcy or call your state Bar Association (in the phone book) for a referral.

I would also look into any sort of civil clinics at law schools or low-income legal service organizations (non-profit!!!) that either do pro bono work (free) or have a sliding scale payment system. Not many do bankruptcy work but they do give legal advice and since you may be disabled, bankruptcy could only be one of your options. The legal clinics may help you determine if you even need to file bankruptcy.

I also agree about finding a credit counselor. They may help organize your debt and stave off creditors while you work at paying down some debt with any disability payments.  

Thank you both for your advice!  I would have to go through credit counseling as part of the bankruptcy process. I will listen for other options, but  I've done a lot of figuring for a long time and it really is my best/only option.  I have no income, and if I do end up being accepted for disability even if I COULD put all of it toward payments (instead of using it for survival), it won't make a dent.

I'll definitely look into the legal clinics too!  Thank you both!

Dear Mimi, Please check out my post to you in Prayer Circle - thanks!

You can find a bankruptcy attorney in the same way that I told you how to find a disability  attorney.

Yours in Him, Amen!  Deb

oh mimi you have been through so so much. i am praying for you. someimes all we have is prayer.

do you have inforline where you live. here in ct it is 211 on the phone.

they have so much information to get you started in the right direction.

sometimes you don't need to file bk but can talk with companies and tell them your hardships and they will work with you.

if you run and hide they will have nothing to do with you . i would call them all up and explain what is going on.

blessing upon you...

Thank you so much Happee1!  I really appreciate your prayers and encouragement!!

Mimi:

I couldn't apply for disability because they couldn't figure out what was wrong, and I kept hoping I'd get better. (I had gotten sick in the past, gotten better and paid off all medical bills, etc. so it wasn't an unreasonable assumption.)  Now they know what's wrong and it turns out I'm only going to get worse or at best stay the same

Sorry to hear about having to file bankruptcy. I went through that 20 years ago. The attorney cost about $600. I am sure they charge alot more now.

Have you filed for SSI/SSDI yet?  If you have done that, have you applied at your state Office of Vocational Rehabilitation for services?? I did and I was accepted while waiting for for my determination from SS. You basically have to have a disability that SS accepts to receive benefits. I was with Voc Rehab for two years. In that time they paid for me to go to school to be trained for a job that I could do. I went to a Computer Skills training school for five months, plus they arranged for an office job part-time($9.00 an hour) while I was going to school. They paid for all my schooling, bus tickets/monthly passes, plus paid for all my doctor visits and all my medications and eye glasses and a few other things. I was so grateful to have their services, I don't know what I would have done without them. Going to Voc Rehab increases you chances of getting approved for SS. I finally got approved last year, my 3rd time filing.