“Dear Steve,

53, steady income 57k, additional income from roomate of 25k, only assest 2008 car, mortgages 324k, cc debt 28k, 80k in retirement but no savings.

Considering chap7 to eliminate cc debt.

Current but struggling due to additional income of roomate has decreased due to medical problems.

household expenses and mortgages are consuming most of the current household income.

very frustrated and confused if i should not pay for groceries and never save or pay credit cards.

have not used the cards in for about a year. just wanted to pay them off but i am really struggling.

tried to borrow from relatives but they tell me to just file chap7 and wipe out debt to start clean now and save for future.

confused….need advice as to weather i should file or not.

thank u.

kimbirley”

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The Answer

Dear Kimberly,

When I read your question what I see is someone who has tried hard to make ends meet and do the right thing but is hesitant about bankruptcy for some reason.

You ask if you should file bankruptcy. The emotional answer for you is “I’m unsure” but the practical answer is it is a legal option to deal with unmanageable debt.

Do not avoid bankruptcy out of some fear of bankruptcy. Bankruptcy will not stop you from having future credit, buying another house, getting a job or any of the other things people irrationally fear.

What bankruptcy may do for you is allow you to clear the decks of debt that you have no reasonable expectation to repay and allow you to get back to saving to protect yourself and saving more for retirement.

Borrow from relatives is not the right approach, in my opinion, if it does not solve your problem but only continues it. In that case all you are doing is taking their money and throwing it away because you are not ready to make the tough decisions required to regain control over your life again.

Your Homework

I’m going to assign you some homework and then I want you to report back in the comments below and we will take this to the next level. I’ll work as hard as you will to get your life back on track, but not harder than you.

I want you to read the following articles.
Bankruptcy Articles and Posts You Must Read

Click Here to Find a Bankruptcy Attorney in Your Area

To get ready to read the information below with the right frame of mind, please first read How Do I Get Out of Debt Quickly? Change Your Mindset.

Bankruptcy Advice
Life After Bankruptcy
Click Here to Find a Bankruptcy Attorney in Your Area
Then, you can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.
After that I want you to report back what you have learned and what you think the next step is for you.