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I Know I’m at a Crossroads But I’m Scared. – Sandy

“Dear Steve,

I’ve seen too many changes lately…

From changing careers to becoming a single mother, I now owe more on credit cards that I earn. With child support and my income, I somehow still manage to cover the minimums of my $45,000 worth of credit card debt, as well as paying for my mortgage and car payment (a lease with 8 months to go). I am now remarried and have help with other bills, however I am on the brink of going under. My husband is self-employed, and my daughter will be leaving for college in a few years.

I want to keep my house and be able to get some kind of transportation when my lease is up. I know that I am at a crossroads, but I am scared at what bankruptcy may bring. However is that the obvious choice for me?

Thanks

Sandy”

Dear Sandy,

The one point of your question that concerns me is that you are currently getting child support and your daughter is leaving for college in a couple of years.

If you are using the child support to help make ends meet and make the payments then that is going to probably end before your debt is paid off, and then what? It is an unfortunate situation I’ve seen time and time again.

I think the issue comes down to one of expectations. If you expect that you will be able to easily make the minimum payments for the next five years, then take a look at a debt management plan. You can click here for credit counseling information.

If you think that is an unreasonable expectation and you need to address your debt right now, then click here to find a local bankruptcy attorney. I always think talking to a bankruptcy attorney is a good idea since it allows you to better understand what legal protections are available to you and weigh those benefits against a credit counseling solution.

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The bankruptcy route would be the better solution if the loss of the child support would leave you unable to make ends meet and you see no replacement of that income.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

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About the author

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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