My wife & I are on SS and have credit card debts of $60k. We have no savings, and SS funds to pay only about half the minimum monthly card payments. We live in Ohio and only assets are our home and car. We do meet chapter 7 income requirements,
We are not sure if working with a debt settlement company might be a better option than filing chapter 7. What would you advise?
The only way to answer this question is to see a consumer/bankruptcy attorney in your area.
You may be completely exempt from creditors. They cannot touch your social security benefits. I don’t know enough about your home and car to know whether or not they are fully protected from creditors – which is why I gave the advice to see an attorney in Ohio.
If you don’t need credit going forward, and can “live off the grid”, then you may not have to pay your creditors at all, nor file bankruptcy.
But in general, I am against debt settlement since most of them are scams. They take your money each month towards their huge fees, then never settle any cards.
There are some good companies out there, but they are few and far between.
My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
If you have a bankruptcy question you’d like to ask just use the online form.We Live on Social Security Alone and Can't Pay Our Creditors. - Bogey by Lewis Roberts