38k in debt from a personal loan and credit cards. My credit is very bad now my wifes is almost there. I went from full time employment to part time to unemployed. We lived off credit cards and the loan thinking that my job would return. My wifes income doesn’t cover all the bills. I just received 12k from an accident settlement. Thats enough to pay the personal loan that is in my wifes name but thats it. I am getting calls and letters from lawyers and bill collectors several times a day from my past due bills.
Should I file bankruptcy, try to catch up on bills or use a debt. consolidation co.? I am not sure that we could even afford the monthly payment for the debt consolidation.
Without any expectation of renewed employment right around the corner it would be foolish to use any of the $12K towards debt repayment.
The accident settlement check may be protected from your creditors and you will need that cash to keep going after your bankruptcy while you look for new and better jobs.
My advice would be to find a local bankruptcy attorney and go in for a free bankruptcy consultation to discuss your situation. You’ve done a good job so far by reaching out for some help and advice rather than just reacting emotionally.
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.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.