Always had great credit, but know can’t make the credit card payments. We have 45,000.00 in credit card debt. I was layed off my the company I worked for 30 years. It took me a year and a half to find another job, not make much less than before (1,588.00 bring home a month). Now my husband lost his job due to store closing and is drawing unemployment benefits (1,024.00). We are in our late 50’s. Daughter senior in high school, soon going to college. We have some CD’s and IRA for our savings only about 90,000. Our home is paid in full. I am worried that the creditors will put a freeze on what little money we have.
A friend told me to move our money from the bank in which out highest card is linked, to a bank we have no credit card with to protect our assets. Put our CD’s in a safe deposit box at that bank too. But what about the IRA? We live in Texas, not sure of the laws. Should we try to settle with the creditors on our own? If so how long should we wait to do so? What should we do?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Hiding or trying to hide stuff is rarely the answer.
The biggest wildcard in this is going to be your Texas homestead exemption in a bankruptcy. I really thin you should consult with a local bankruptcy attorney to discuss this for free. You can click here to find a local bankruptcy attorney.
What we need here is a solution that allows you to specifically address the underlying issue and restructure or eliminate your debt. Hiding assets or moving money is just a distraction and not a solution.
The retirement funds are generally protected from your creditors.
Let’s take this is stages. I’d like for you to contact the local bankruptcy attorney and learn more about what bankruptcy would mean for you and use the free How to Get Out of Debt Calculator to review your options.
Please post your responses and follow-up messages to me on this in the comments section below.
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