Disability and Filing Bankruptcy- should I file or not?

Question

Can the credit card companies get my disability money like they garnish wages?

Will my credit clear-up in 6 year if I don't file bankruptcy?

It has been 15 months since I have charged anything on any credit card account.It has been 12 months since I have paid on any of my credit card debt. It is well over 10 times the reported national average. My life situation changed dramatically. My old job was great money and I would be back in it in a heart-beat , if I could. Income from disability doesn't cover the unsecured debt I have.

I hope to heal and someday go back to work; however, what looks worse a bankruptcy or bad credit? I need advice that will help pull my life together in a way that I can return to the mainstream without some creditor popping up to sabotage my attempts to become productive again. (next time without credit cards- I have made it a year and I am determined to go longer even though the idiots keep sending cards(with hugh credit lines) in the mail.

Answer 1

Between bad debt and bankruptcy, bankruptcy is worse but neither is a good option. Hope you get better soon and are able to get back to work.  

Answer 2

Bankruptcy should be your last resort. If you haven't tried to work with your creditors to make payments, and can't make the payments based on your disability income (which by law they cannot garnish), contact a local bankruptcy attorney and see what your options are and what chapter you would qualify for. They will look at your income if any from the last 6 months, assets, a list of your debts and last 4 years of taxes. Most will see you on a free first consultation, suggestion to see a few to get the right attorney for you, and one you feel the most comfortable with. The filing will cost you anywhere from 800.00 to 1500.00 to file, some will do payments, other attorneys want it upfront to file, they will be able to tell you what they can do for you. Not sure where you got the 6 years to clear up credit. Debts are on your credit report for 7 years , a bankruptcy filing for 10 years. Another thing to consider when filing any bankruptcy, if you are going to be job hunting, a bankruptcy will definitely NOT get you hired in the finance industry if a company does a credit check, some company frown upon it, others don't care.  You can review these websites,   www.totalbankruptcy.com   www.usbankruptcycourt.gov, and www.bcsalliance.com    Good Luck!

Answer 3

Call the credit cards companies explain your situation. they rather work with you then lose everything if you file. Bad credit don't work against you as much as bankruptcy for 7 yrs .