Too much credit card debit due in part to helping niece and nephew out, then excessive repairs to my home, in an effort to make the necessary repairs, I practically lived off my credit cards. Now have nearly $50,000 in credit card debt and am short almost $600.00 a month to be able to make payments. I have consulted with LSS Financial Counseling and they are unable to help me because I would need $1142.00 a month to pay off my unsecured debts and that would make me $800 short. I am presently not behind on any secured debt. My only problems are with 3 credit card companies.
After talking with LSS Financial Counseling, they have pretty much said my only solution is Chapter 13, however, I am very reluctant to do that. Do you have any other solution? I have worked with my credit card companies to get lower payments, but I’m still short on cash every month. I would like some other solution besides bankruptcy.
LSS Financial Counseling Service gave you the right advice.
From the budget they prepared for you based on your conversation with them, even without your credit card payments you have about $592 a month left over and that’s not enough to repay your debt based on what creditors will accept. But looking at how light the budget was I would estimate that you really only have $200 left over once you factor in all of your out of pocket expenses and putting a bit in savings each month.
With your debt and residual income there is no reasonable expectation you would be able to both protect your financial future by saving money for emergencies and enter into a payment plan to resolve this problem.
I think the time has come for you to click here to find a local bankruptcy attorney and go talk to them. I hear your hesitation to consider bankruptcy but without talking to a bankruptcy attorney you don’t know if you might qualify for a Chapter 7 bankruptcy. If you do then your debt problems will be behind you in a matter of months.
It might be that you feel an intense desire to repay your creditors but there is no reason you can’t seek the legal protection bankruptcy offers and then repay your creditors latter as you can.
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.