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Umemployed with $17,000 in CC debt that I'm having trouble paying. Is filing chapter 7 my best solution?

Seminole, FL |

I lost my job March of this year, my house was sold in a short sale last month. I have $17,000 in cc debt, unemployment benefit of $1050 per month, with no other resources. I'm actively looking for a job but I'm in non-profit fundrasing and it's dried up.

My credit card companies increase my percentage and lowered my limit after the house went into delinquency.

I have one son 20 at home and just got married in August to a man who has nothing to do with my debt problems and doesn't make enough as a student working part-time to assist in more than the normal household expenses. What can I do?

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Attorney answers 3


With your credit trashed, you need to take a realistic look at your finances and decide whether now is actually the moment to go Chapter 7. Nobody is really in a position to take anything from you and although it's possible when you get back on your feet job-wise a Chapter 13 could make sense, for the moment you may want to just rock along. Going Chapter 7 costs money, and it makes sense when you are approaching financial recovery to the point where you have something other than exempt property and exempt income.


Assuming you qualify, the relief that you get from having to pay off the credit card debts and any other unsecured debt that you may have can be in your best interest. However, there are so many more factors that have to be considered before a complete answer can be given. But, the Chapter 7 relief is in most cases the most complete and should be the goal if there is no secured property you are trying to protect.


I partly agree with Mr. Hankins. What if you incur new credit card debts while you're still unemployed? There's no telling how long you'll be unemployed, and at this time you might have to take whatever job you can get. You can only do one Chapter 7 bankruptcy in 8 years.

On the other hand, if no job prospects are out there and you need to start your own business... you have old debt over your head.

First figure out what will be your next step. New job? or start a business?