What would you do? (long read)

[BarneyBarton]

I am 51, my spouse is 59. Five months ago I took a voluntary transfer to a higher paying position 1,000 miles away within the same company. My spouse was employed and earned about half the amount of my salary. We sold our home and purchased another at the new location. My spouse could not find employment. Three months ago I became disabled and could no longer work in my former occupation. We sold this home and moved to a larger city, signing a one year apartment lease. This should provide greater employment opportunity. I am seeking rehab training and have some of the tools and some of the experience necessary to perform freelance work. My disability requires flexibility. With the proceeds of the home sale we will get caught up on our bills (monthly for now) and I can purchase the remaining equipment necessary to become an earner again, although expected pay would be meager in the beginning. I presently receive Company Short Term Disability (half salary). I have applied for SSDI and have a few months before I know the status of this. My spouse is unemployed and at her age employment is not a sure thing. Our monthly expenses are $3,033 including debt.Total debt is $55,424. Our monthly expenses which is twice my disabiltiy income. This pay will end in about three months and we are unsure of income after that point. Any suggestions?

[EdytaHome]

If the $55,000 of debt is unsecured credit card debt would it make sence to try to pay if off or to file BK and save for retirement?

Are you willing to live in an apartment and pay rent for a while since after BK it will be hard to obtain a home loan within the next 2-3 years.

Do you have savings, 401K, stocks and/bonds. This may be something that the trustee may potentially want although I don't think so because of your close to retirement age.

Do you have substantial medical bills from your disability or will you have them in the future?

Overall, if you have no assets and have $55,000 in unsecured debt, it may be wise to file BK and move on with your life while you still can before the new laws take into effect.

Good luck!

[BarneyBarton]

49,000 is unsecured. 6000 is a secured auto loan which I would hope to reaffirm. Less than 1000 in medical bills but this may grow if I lose health insurance. Present asset is proceeds from home sale. This asset we wish to use to pay 6 months of our apartment lease, to catch all credit installment debt up to date and to invest 4,000 (one item of which is 2000) to begin freelance work. We have 401k approx 3000. I live in a state that can claim federal exemptions. I see chapter 7 as a strong possibility and want to properly plan exemptions and to insure compliance with the law.