My husband and I now have about $47,000 in Credit Card debt. We were ok before Hurricane Katrina and then over this past year have come across hardships. Currently we are not bringing in enough money to pay even our living expenses much less minimum payments. Not long after the hurricane I had a very bad pregnancy and was put on bed rest. I then had a pre term baby whom is home on a breathing monitor. The fact of the monitor prevents me from making the income I was making to meet our bills. My husband and I have tried everything to keep our head above water and we have now gotten to the point that we were late on two payments last month. We went to debt consolidation credit counseling and were told that we couldn't do that due to the lack of income. They told us to seek legal advice. I am still unable to work or find childcare at this time due to the monitor my child is on. We can't afford for the credit cards to continue to go unpaid. Where should we go from here?
Credit Card Debt
1 Comments:
You have a few options.
First, it appears that you have already tried consumer credit counseling, where you make payments over time to repay your debts in full, generally over no longer than a five year period. If you owe $47,000 and have minimal income, it would seem unlikely that that would be a good option, since you cannot afford it.
The next option would be to simply stop paying these debts, but unfortunately they will continue to pursue you.
Your final option may be to file a Chapter 7 bankruptcy to discharge all of your debts.
You should contact a bankruptcy attorney to review this option and determine if it is the correct option in the circumstances for you at this time.
By Bankruptcy Expert, at 2:24 PM
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