On a bright side, if you don’t have enough money to file, then you don’t have any money for the creditors to take away from you either. So, I would not stress too hard … denial might not be an option, but there also is not a lot they can do to you.
What is your income? Do you have a written budget? Have you cut your living expenses as far as possible? (Cut out cable, cell phone, etc.)
After your budget is written out, determine how much you can toss at debt each month. Make a list of the debts you owe, smallest to largest. I’m assuming you are not current on any of these bills? You can do one of two things….
Develop a pro rata plan for all your debts and send each of them their share each month, letting them know that this is all you can do right now. (You can read more about this in Dave Ramsey’s Financial Peace book).
or – pile up that debt money until it is about half the balance of the smallest debt. Write to them and offer half the balance for a “paid as agreed” letter. If you get the letter, send them a money order for that amount and call the smallest one done. If they refuse, let them know that you will move on to the next creditor who will accept your money – put them back on the bottom of the list and try for the next one.
Whatever negotiation you do, make sure it is in writing. It is much more peaceful that way …. as well as you have a written record.