I am a single 60 year old widow. I cant work anymore because i have Stage 3 COPD. I receive $746 a month in Social Security Survivors Benefits. I have no savings. My home is paid for. I have 8,000 in debt and no way to pay these bills and eat too on $746 dollars. I have no need for credit anymore so that doesnt matter and I have been thinking of filing for bankruptcy, i think i need to. What do you think, or is there another option for me?
@Rebecca, what kind of bills make up the $8,000 you owe? If medical debt makes up a lot of that, there are programs that help reassess your medical debt and current situation to see how much you owe (or don't).
I found this quick rundown of debt that constitutes as forgivable and not forgivable when it comes to bankruptcy:
"Debts that can’t be wiped out are student loans, child support, alimony, income taxes, debts to government agencies, debts for personal injury caused by driving while intoxicated and any court fines or penalties.
Debts that can be wiped out in Chapter 7 bankruptcy include credit card debt, medical bills, personal loans, lawsuit judgments and obligations from leases or contracts. Chapter 13 bankruptcy wipes out those debts, plus debts from a divorce (except support payments), debts for loans from a retirement plan."
Read more here: https://www.debt.org/bankruptcy/should-i-file/
This is what I am considering. I was married and I inherited his debt. I have paid some but utilities and student loans are keeping me down. I know the student loans will stay but Credit card…car and a few other Bill's have me 20k in the hole. I'm a 34 yr old single mother of 4. Should I start over this way?
I would always advise looking at alternatives to filing for bankruptcy before pulling the trigger! You can often negotiate debts (especially those in collections) to get the actual amount owed down considerably. If you are younger, you definitely want to protect your credit score (if you have even the slightest expectation to need a loan in the next 10 years). Not owing that $20k now could result in paying $10,000s more in interest over the life of a mortgage!
For example,
$200,000 loan for 30 years @ 4.5% (lower $ amount than national averages) = total interest of $164,813.42
That same loan @ 7.5% (not at all unusual for someone with a bankruptcy who can actually get a loan) = $303,434.45
Just remember to consider more than the present when making such a huge financial decision like filing for bankruptcy! You may be better off not, but you might be shooting yourself in the foot over the long-term!
My 8000 in debt is to credit card companys, credit stores and medical bills. I havent paid on any of these bills and cant. I will be filing for bankruptcy on May 1st, i will be behind for 6 months by then.
Our attorney can help you. https://helpsishere.org They have a sliding scale fee.
Thank you Roger B.:-)
Thank you Roger B.:-)
Understand that they can NOT touch your check. Period. You can have 2x the amount of your check into the account that your SS goes into.. and that means $1492 can not be touched. Meanwhile you can learn from their videos.. https://www.youtube.com/channel/UC8I4U57P7F4mHpwCHgCNcgA If you want you may tell them that Roger B from Pennsylvania suggested this help. Eric Oleson is the founding attorney- and all of the staff if helpful. I think thus far they sent 7 letters on my behalf. We been with them for around 3 years. It is amazing the stress that is gone. It is a gift from G*d. :-)
Roger B, i called HELPS the other day by the way and i am now enrolled, they have sent out letters to my creditors, i am so thankful for you recomending them, thank you so so much :-)
Rebecca C., very cool. I am glad you followed thru. When I seen your first post, I thought if there ever was an ideal match- you and them are it. I have known them for 3 years and it sure released alot of worry. I dont recall how I found them. They did send out some letters on my behalf and that is sure appreciated. They handle only SS folk. (with sliding scale) They quite literally may have saved me from having a heart attack. When you feel doubtful look at their site/videos. Sometimes stress can make me forget. I am smiling. :-)
Roger B, well thank you again. Since my SS Widows Survivors monthly check is not much, they are not charging me a fee :-). I think HELPS are doing a wonderful thing helping us older people who have more debt then we can pay. I now know these creditors cant take my monthly SS and that makes me feel a whole lot better too and i dont have to file for bankruptcy.
Great forum and discussion
I was thinking to file also
Another option for any of you considering bankruptcy is to First speak to a financial counselor here for free. I believe it's on the homepage where are you come sign up. The wait is only a few days and you have 30 minute calls with an advisor. Just seems like a huge decision that should be discussed with the professional. So glad to see some of you getting help in this thread.
Just my input if you own your house creditors can put a lien against it and in a chapter 7 they can try to have you use the equity in the home to pay off debt. Best bet to a chapter 13 to restructure the debt at a reduced cost.
chapter 127 debt consolidation seems better than chapter 11
Medical debt is the easiest to negotiate 4 Penney's on the dollar Rarely do they show up on your credit report. If they do the drop off quickly we should never file bankruptcy based on medical bills
Contact the collection agency that keep up good-faith negotiations it will eventually wear them down for something you can afford to pay off
Rebecca,
Yes, there are programs that can help you pay your bills but it is not enough. I filed for bankruptcy because I didn't have the money and I was getting sick. Call the Legal Aid office to find out if you qualify to get Chapter 7 done for less money. Yes, is going to take two years to get your credit score up but you don't need to worry about money. It's going to stay in your record between 7 to 10 years, but at least you have a piece of mind. You should focus on your health and do what is best for you.
Why would you file
I'm close to $15,000 in debt, at least 2 if not 3 are starting to garnish my paychecks. Should I file for bankruptcy?
following
Following
following
This information is helpful.
