My Short Term Disability Company Hasn’t Paid Me and I’m Struggling. – Michele

“Dear Lewis,

I am currently on short term disability for the last 5 months. The insurance company hasn’t paid me for the last two. They keep giving me the run around. I had to rent out my town home and now I live with my mother. I have no income and no savings.

I have three cc. One at $5,100.00, another at $4,800.00 and the last one at $2,800.00. This is the first month I wasn’t able to make the minimum payment. I called the cc companies and they are not will to help me. Since I am unable to pay them should I file for bankruptcy? If they cant provide proof of debt will that stop them from sueing me.


Dear Michele,

Unfortunately, there is no magic number of total debt that makes sense to file bankruptcy or not.

You say you are on short term disability. Do you expect to be back to work soon? If you do get back to work, will you be able to catch up and eventually eliminate credit card debt?

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If you will be so far behind on the credit cards, with the balances growing to larger numbers, that you cannot pay them even when you get back to work, then bankruptcy may be the best alternative.

But there are other considerations. I have no idea about your ability to qualify for chapter 7 based on your household income, expenses, and any potential unexempt assets.

You need to consult with a bankruptcy attorney in your area. Almost all attorneys offer a free consultation.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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