The bankruptcy homestead exemption varies tremendously by state, from basically no protection at all in Pennsylvania to almost unlimited in Kansas, Florida, and a few others. Any discussion of exemptions has to start with what state the debtor lives in.
Just popping into the thread to wish you all the best Carol, whatever decisions you make.
Thank you, kambuckta. I must say that this thread has made me feel so much better, and that’s due not just to the helpful advice but the expressions of support.
Been there, done that. There is light at the end of the tunnel. As someone said you will be getting offers for credit cards within a couple of years; most will have low credit limits and most will require annual fees but they can be useful for rebuilding your credit. I was in my mid fifties and thought it was the end of the world but it turned out to be the best (if only) real option I had. My credit rating now is in the mid seven hundreds; not perfect but not bad either. It does take discipline but it can be done. Best wishes and good luck to you.
This so so so much. States vary in how the primary residence’s mortgage is treated, and California is its own kettle of fish (as an example as I do not know where the OP lives).
I like to think we’re getting away from the mindset that people’s finances somehow tie into the quality of person they are, the belief that having money means that person is favored by a power outside of human comprehension, while we watch businesses fail and succeed but fully grasp they’re controlled by market factors and don’t judge them nearly as harshly. I’ve worked in debt collection for years at 3 different companies and this cognitive dissonance confused me and usually whomever I was pointing it out to but never fully dissolved.
Far more of the people around you (the ubiquitous you) have filed for BK than you’ll ever realize. Doesn’t mean they won’t be jerks about it, sadly.
I filed for bankruptcy almost 6 years ago after my first wife left me with 2 mortgages and 3 kids and a fair amount of credit card debt besides. in my case it was to ensure me and my kids didnt get thrown out in the streets until I figured things out (filing bankruptcy provides a tempoary stay of all foreclosure proceedings). It worked out well for me, except of course the massive hit to my credit score which I’m still paying for ( though it has improved significantly from what it was immediately following). I met with a lawyer for a consult, described my situation, talked about some options, and decided that bankruptcy was the best option (the next best option was “just don’t pay your bills” which hurts your credit also but can probably be recovered from quicker).
Ask your lawyer about what it means to be “judgement proof”. I think most credit card debt falls into this category (might vary by state or country). As explained to me, if you don’t pay a credit card bill, they can sue you, and even win, but there will be no way to enforce collection (can’t tarnish your wages or seize your assets, for example). Of course they can still harass the shit out of you…bankruptcy will stop all that virtually instantaneously. It is a wonderful feeling to not be filled with dread every time the phone rings.
Given that your debt is mostly credit card, you should seriously discuss with your lawyer if just walking away might be the better option for you.
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A resource that might help; statutes of limitations for consumer debt by state.
I am a 2 time bankruptcy veteran and have come through it all in fine fashion. Both instances involve poor decisions by my ex-wife, it’s the main reason she is now my ex. The first time was after my mother in law passed. My ex stupidly signed an agreement to pay a bunch of nursing home and medical bills that she was not liable for. Within 6 months, the lawsuits started arriving. The second time was after my ex put her daughter and son in law on our car insurance. The son in law falls asleep while driving causing a 6 car accident with total damages approaching quarter of a million dollars. A couple lawyers came after me and my ex claiming we were liable because he was on our policy. This wiped out my retirement plan, we lost our home and ended up in BK court. Found out later we could not be held liable for the accident.
Now it’s many years later I have a an excellent credit score. The only bad part of all that had nothing to do with the bankruptcy, it was the hit on my 401K. I will have to work well beyond my planned retirement date to make up for the loss of that money.