
Stacy: If you reside, have a domicile, a place of business, or property in the United States you are eligible to file for bankruptcy. If you only have $7000 in debt there might be some other ways for you to deal with the debt beside filing for bankruptcy. There are non-profit organizations that provide credit counseling services for either no fee or a very nominal fee that you could consult to determine if you are truly a candidate for filing bankruptcy.
I suggest that you contact one of those organizations to determine if there are other alternatives available to you.
Austin Hirschhorn; 101 West Big Beaver Road, Suite 1050; Troy, MI 48084
Phone: 248-680-1660 Fax: 248-680-1671
Other Answers
You need to analyze the costs and benefits of doing a bankruptcy vs. the problems that might arise from the credit cards trying to collect on their debts. It depends on what assets you have, your job situation, and other factors. The only way to properly evaluate this is to have a consultation with a bankruptcy attorney in your area. Most attorneys offer free initial consultation.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
If they take you to court, what will they get? Look at what property or earnings they could take. If the answer is "none" then either don't worry about it or offer a settlement that you can afford. You owe so little that it would be a shame to file for bankruptcy, incur the cost of the bankruptcy, and then be precluded from another filing for 8 years. You may need it in the future if your prospects get better.