Should i file for bankruptcy

Started by Rebecca C.
Followed by: @Rebecca @George @"Sherrie D" @Monica @Ebony @Danielle @Neosha @Spencer @Sharlene

Rebecca C.

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?


Danielle B.

@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:


Ebony A.

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?


Spencer H.

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!


Rebecca C.

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.

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