My parents are 71 and 73 and still working full time. My Dad had a gambling problem and has put them in debt with credit cards.
My mom has been sending the minimum on most and more on others but the interst is killing them. They are both in poor health and would like to retire this Dec and Jan. Would bankruptcy be an out for them? They live with me and own one of their cars. No other assests are noted and my Dad has a 401k plan. Can you help me for them?
This issue has two components.
The first is the issue with the gambling. Your father needs to seek help to deal with the underlying issues that drive him to gamble. You might want to try a local Gambler’s Anonymous meeting for a start. If we don’t deal with that, the odds are he will reoffend.
Bankruptcy does should like a reasonable solution based on their age and health. I don’t forecast any issues with that approach. Depending on the value of their one car, I would expect them to be able to keep it without a problem.
If you want, you can click here to find a local bankruptcy to assist you with this process.
For more research, I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.