Jan wrote to me through the GetOutOfDebt.org site and asked the following question. 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.
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“Dear Steve,
My car payoff is $22,900 and I pay $450 a month. I have credit debt that adds up to $20,000. I’m receiving unemployment for the time being I am making payments on everything but I’m nearing an end as far as income coming in. I have not found a job and soon my unemployment will expire. Should I consider bankruptcy :(
Jan”
The Answer:
Dear Jan,
Thank you for your question.
I think the situation has already answered your question. Without any income soon you will not be able to pay the bills.
While there is no reason you need to go bankrupt right now, I would think that that without any expectation of new income, and with the knowledge that collection pressure will begin and increase, that there is not much sense in delaying a bankruptcy.
If you go bankrupt now it will nip the demoralizing collection activity in the bud and give you a better chance of keeping a level head so you can move forward to find your new way in life.
