Question:
Dear Bankruptcy Adviser,
I am 60 years old and own a condo with a balance that is probably equal to what the property is worth. I had been out of work for almost a year and am now working at a job that earns less than minimum wage. My question is: I have more than $60,000 in credit card debt mostly due to trying to exist. At this point in my life, I don't see ever being able to pay this off. Should I consider bankruptcy?
-- Jerry
Answer:
Dear Jerry,
Your age and income should make for a very smooth bankruptcy filing. And because you have no equity in the condo, it is protected as long as you make the mortgage payment. Sometimes the biggest hurdle is the emotional one. You likely have had years of perfect credit payments, and you bought a house, made those payments and had a well-paying job.
But you might not have saved much for the future, and the loss of the higher-paying job meant credit cards were used to fill in the monthly expense gap. As a result, the credit cards became your "savings" and were used to supplement limited income. This is more common than you know.
I would suggest you take the following steps.
Contact at least two bankruptcy attorneys in your area. You should receive a free consultation, and each attorney should be able to tell you in less than 30 minutes whether you qualify and what type of bankruptcy you can file. After that meeting, you have a powerful tool at your disposal: You will know whether bankruptcy is an option.
