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Someone Said $50,000 is Not Enough Debt for Bankruptcy. – Michelle

“Dear Steve,

We are keeping up to date on our credit card minimums barely. We have regular income, but now all of our minimums have increased with the new regulations. We have about $50,000 in credit card debt and we make about $65,000 a year. We used our tax check on some bills but are not even making a dent in these. My daughter starts college next fall and I don’t know how we are going to be able to help her. I have looked into debt counseling, but am skeptical.

What would be a suggestion for our situation? Is bankruptcy even possible, or should we try something else? Someone said we do not have enough for bankruptcy.

Michelle”

Dear Michelle,

I don’t who told you that $50,000 was not enough debt for bankruptcy, but they were wrong. It’s not the dollar amount that is important, it’s the situation. You could go bankrupt with $1 of debt if it made sense and was the right solution.

I’m concerned that you got a big tax check back. That tells me you are probably have too much taken out of your paychecks each month when you need it most. The goal should be to break even at tax time. You might want to adjust your withholdings to do that.

No other solution is going to address the debt situation and eliminate your payments. It sounds like that is the goal you want to achieve.

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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