Bankrupt is it my only out?

Question

devorce 4 years ago after 33 year marraige. moved to fl. to help mom she died 5 months later. had no place to go boughther house for 50. 000 trailer. 35000 morgage. paid co pay 300.00 month for medication i am a diabetic ended up in hospital had a bad experience with alcohol after moms death almost killed me co pay hospital put on cc card. broken leg 500.00 copay on cc. bills kept mounting everything on credit cards needed hearin aids 5000.00 on credit could not hear . lost my job in april.i am 59 cant find any job at this time , 36.000 in credit card dept. income unemployment 1100. a month just enough to pay morg. house value 40.000 max on todays market. am i doomed or will bankruptcy help. my daughter will help with the lawer bill.thank you Steve at [e-mail],

Answer 1

Hi Steve,

Sorry for your loss and my regrets on your marriage.

Good to see you still have the mindset to look after things.

I'm wondering does the home you live in now have the functionality to be rented out or have shared accomodation potential? You could try this for a few months to bring in some extra income.

Is it possible your daughter could lend/give you some money towards the mortgage and debt settlement instead of just handing it over to lawyer. You may want to try chapter 7 with a repayment plan after you get a job instead of total bankruptcy with no end in sight.

Good luck and hope things turn out for you Steve :)

Answer 2

Based on the info you provided, Chapter 7 is probably you're best best.....Just remember, you can only file for Chapter 7 once every eight years....So if you file and in two years, for example, you find yourself in a worse financial situation, you won't be able to file again....

Answer 3

We just went through a bankruptcy.  A lot of ours were medical too.  Did about the same thing.  Dont get involved with those credit companies that promise to fix it for you.  I backed out of one.  They make you pay them first and then might help your bills, by then you might be in court anyway,  Also if they get you off for 40 to 60 percent you still have to pay taxes on the rest.(the difference)  I would talk to a lawyer.  The first vsit it free.  Bring all your bills and account numbers.  I almost bet you qualify for the Chapter7 like we did.  You can still keep your house a vehicle and a lot of household things and not pay back the rest. What a releif it has been.

I remember someone tell me during it, bad things just happen to good people.

Also since you are at that age, look into maybe getting your retirement early or even disability.  A disability lawyer only gets if he wins.  I thought he was worth every penny,  ( I am disabled) but had lost on my job a little before I became disabled).

Answer 4

Anjell...chapter 7 doesn't have a repayment plan....chapter 13 does!    Steve.....check this site out and read up on the info posted there.....  www.bcsalliance.com   Great site to inform on credit, debts and bankruptcy info. What you need to do is contact a local bankruptcy attorney, most will see you on a free consultation. From what you have stated you would qualify for the chapter 7 bk, which is now with the new laws based on the income, which was reduced, but with what you have as unemployment income, you may be able to still do the chapter 7. My only concern is that filing a chapter 7, you can re-affirm on the loan, (continue to pay), do you want to keep the home??  A chapter 13 prepayment plan is out because you have to have a job in order to keep the home as they do what they call a wage order and take the money from your paycheck and issue it to the US Bankruptcy Court Trustee, this plan runs mostly for 5 years, it would pay secured debts first, then the unsecured which are paid at a minimal amount. A good bankruptcy attorney will want to see pay stubs from the last 6 months, a list of all your debts, write down each and every name of who you owe, even if it's collections so you have them all, also the last 4 years of taxes and call a couple area bk attorney's and see what they can do for you....For a chapter 7 filing, your mortgage would have to be current in payments, but, the attorney will explain more. If you have any more questions, feel free to email me, I used to work for a bankruptcy attorney. Good Luck!