Got letter from court regarding line of credit?

What did you get from the court? sounds weird.

When you don't pay then the creditor would have a collector call you 3 times to repay, and if you don't repay then it would go back to the creditor (where you borrowed it from) and they will take you to court. You would not get a letter from the court but instead would receive a document telling you when the hearing would be and for you to appear in court on that day and explain yourself to the judge. Go to that hearing.

If you are employed then get an appointment with Consumer Credit Counseling and see if they can help you.

I don't know if your $25k is because of a car, if that's the total of all your bills or what so you'd have to see that counselor for advice. If they suggest chapter 13 and you repay over 5 years then take that deal and apply for Chapter 13 bankruptcy.

I would say you should NOT file for a Chapter 7 for owing only that low amount.

Bankruptcy is not that easy, fast, or cheap to get. If you are young with lots of paycheck years ahead of you, then odds are they will put you in a settlement program. Courts expect you to pay your bills even if it means a hardship. They will make you pay down as much as you can before they will grant a payoff. Don't rush into a bk, it has lifelong effects. Talk to them & see what they offer. Credit counciling might be a better option.

Bankruptcy might be your only real option. But you need to figure out how you got into the mess you''re in and how you're going to avoid getting there again.

good luck.