Finance House

What is the name of your state? GEORGIA

I am currently a full time student and working as a waitress. Up until about 2 years ago, my credit was excellent (no past due, rated in the top 10%). Over 2 years, I had some problems with my financial situation that I ended up with about $40,000 credit card debt and car loan. I don't have any families I can turn to, and only making about $600 from the restaurant. Creditors already start calling me, and some of them have turned my files to the attorney. They told me they're going to take 'legal action'. What does that mean? Can they take me to jail? I want to work with them but the amount they require from me usually is way too high, and I have to tell them I can't do it. Should I file bankruptcy? What's the worse can happen? Please give me some advice (other than pay my debt). I can't ask anyone else for a loan. I have noone to turn to.