I am married and have my own business which is now 2 years old. I went from a business where I made alot of money to a new start and because we counted on my $50,000 per year I used all of the money from new business sales I made for bills. Plus, we still needed to charge things. Then I used charges to buy more product to sell.
Now I have had an injury and have been unable to work for several weeks. We are not behind on anything yet...but will be behind on charges by end of Nov. We owe $50,000 in credit card debt. In addition, we have paid and charged thousands in medical bills for me this year. There will be several thousand more in bills coming with no way to pay them.
I think we can make payments on mortage, car insurance, and utitilites. But I need time to build my clientle so I see no way to pay the charge account. We have wiped out our savings. We have $80,000 in a 401K which we need for retirement.
Our car is paid for and not worth much.
My husband is legally blind and makes about $28,000. His money pays health insurance, 401K, disability, life, and groceries.
I am wondering if filing Chapter 7 makes sense at this time. We have a ton of
medical bills coming with no money to pay them, and the $50,000 in charges. Do we just cut up our cards and send them to the company with a written letter that we hope to pay but need some time to get back on our feet? The same with medical? I realize they will scream and call...but what else can they do? The medical bills may get judgements...can we appear and ask for slow pay of $10 per month?
Would this be better than bankruptcy and would it be feasable? I don't know who to believe. A bankruptcy attoreny may just say to file so he can get his $1,000 plus fees.
What should we do? I do know that we are ready to follow Dave Ramsey's plan for Financial Peace.
Now I have had an injury and have been unable to work for several weeks. We are not behind on anything yet...but will be behind on charges by end of Nov. We owe $50,000 in credit card debt. In addition, we have paid and charged thousands in medical bills for me this year. There will be several thousand more in bills coming with no way to pay them.
I think we can make payments on mortage, car insurance, and utitilites. But I need time to build my clientle so I see no way to pay the charge account. We have wiped out our savings. We have $80,000 in a 401K which we need for retirement.
Our car is paid for and not worth much.
My husband is legally blind and makes about $28,000. His money pays health insurance, 401K, disability, life, and groceries.
I am wondering if filing Chapter 7 makes sense at this time. We have a ton of
medical bills coming with no money to pay them, and the $50,000 in charges. Do we just cut up our cards and send them to the company with a written letter that we hope to pay but need some time to get back on our feet? The same with medical? I realize they will scream and call...but what else can they do? The medical bills may get judgements...can we appear and ask for slow pay of $10 per month?
Would this be better than bankruptcy and would it be feasable? I don't know who to believe. A bankruptcy attoreny may just say to file so he can get his $1,000 plus fees.
What should we do? I do know that we are ready to follow Dave Ramsey's plan for Financial Peace.