“Dear Steve,
I am a 59 yr. old widow. I lost my job 2 yrs. ago and rather than doing nothing, I started a pet-sitting business. Actually, I have slowly started building this and want to continue it as I see it as a way to work when I am older.
I currently live on a veteran’s pension of 670. per month and whatever my business and other odd jobs provide. I had a pile of credit card debt built up when I lost my job and it seems like all my money goes there. I have to depend on free medical services and food stamps to get by.
$400 gets paid out in old credit card debt from when my husband was alive and we had 2 incomes. I have looked at the credit consumer people but they just want money and to extend my debt way into the future. It appears I can’t claim bankruptcy either as I have an emergency fund of $5,000 and a 3 year old car I bought for my business.
I don’t know what to do. Any help? Also, the card people won’t give much help.
What should I do when I can’t claim bankruptcy because of an emergency fund I keep. I have 20,000 in credit bills and just can’t pay them now. My situation is stated above. Any help would be greatly appreciated. thank you
Christine”
The Answer:
Dear Christine,
The emergency fund is admirable but there are ways to handle that when going bankrupt. It might mean using the money for something else right now, like paying for bankruptcy, but once the credit card debt is gone the fund can be built back up. It would be a shame to let that one issue hold you back from moving forward with a solution to take this stress off your shoulders and actually resolve this situation.
If you’ve already seen one bankruptcy attorney, I’d suggest you click here to find a local bankruptcy attorney and get a second opinion.
Without legally closing the door on that debt which you can’t manage and have no expectation of being able to pay then it is going to sit in collections, you may be sued, but at the very least it can cause stress and interrupt the quality of your life.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.