Here’s the story:
My mother and I lived together and shared our income and our expenses; when she died three years ago, I went into such a deep depression that I lost my job and apartment and wound up trying to commit suicide six times.
So now I owe approximately $35,000 for the car we were buying, the credit cards we had, and my hospital bills. I’m on disability and have an income of $800 (only about $150 of which is ‘disposable income’). I know declaring bankruptcy is bad, but even if I go into debt consolidation I think it will take longer to pay off the debt than the ten years the bankruptcy will stay on my record.
I’m 41 and I don’t know what to do. Any advice would be appreciated!
Debt consolidation is not an option for you, your income is way too low. Considering your current situation, bankruptcy is a viable option. It is not as bad as most folks think it is but I will guess there are some that will disagree with me. And considering some of the options, lawsuits, garnishments, etc., bankruptcy is relatively painless. You can obtain some information here, but I would suggest contacting an attorney as soon as possible.
I was in the same position when I split up with my partner. I pay £140.oo per month to a consolidation company. It is gonna take me about 15 years to clear the debt.
I have now been made redundant and have no money to pay the consolidators. I do not know what to do either.
Resident Credit Bureau guy here…I’ll give you details on how banruptcy affects credit.
Bankruptcy Chapter 13, where you pay your debts (somewhat) is best option…and Chapter 7 (liquidation) is second when it comes to filing.
Bankruptcy, if it’s ‘discharged’ and a Chapter 13 is bad for a lot less than 10 years. Mostly for modest credit apps, they look and score the past three years, so you don’t have to think 10 years of your life is gone.
Whatever you do, make sure you keep records of everything, such as all the accounts included in bankruptcy and make sure when the record is discharged that you have records of that and make sure your credit files are accurate.
Keep a credit card if you can…establish checking accounts with a bank if not too late and keep them.
Overall, the absolute worst thing for your credit history is to do nothing and have them debts show as unpaid collection and written off accounts.
Call your creditors NOW and work with them. Understand they can only work so much, but they have some latitude with payment schedules. Do threaten then with bankruptcy chapter 7 to get what you want.
Debt consolidation companies are funded by big banks and credit card companies…they want you to pay and fund progrmams to keep you from filing bankruptcy.
Having a regular address, checking account and job will do wonders even if you follow through and file bankrupty.