It depends on how long you think you’ll be out of work. If it’s permanent, maybe bankruptcy is the way to go. But if you think you could work again in a year or so, try to negotiate with your creditors and avoid ruining your credit.
Just stop paying. Bankruptcy isn’t necessary. Your credit’s going to be bad either way. Inform your creditors that you’re disabled and can’t pay, and they might just write it off.
Also, look into public assistance programs like SNAP and phone assistance. Use whatever you qualify for.
Good luck, and don’t be ashamed of your situation. Anyone could end up disabled, and I’m glad there are safety nets in place for people like you.
Focus on making payments where you can. If things go to collections, so be it. Disability income can’t be garnished.
Even if you get sued, they can’t collect from you. If you’re not planning on owning anything like a car or house soon, there’s no need for bankruptcy. You can file later if something changes.
Disability benefits take forever. I filed for bankruptcy in 2017 for $20k of debt because I couldn’t make the minimum payments. I paid the lawyer with my tax refund, about $1,300. I kept my car because I was paying it off. A few years later, I got credit cards to rebuild my score, and I’m now in the 700s. I even bought a house last year.
Don’t bother applying for 0% APR balance transfers. Your credit is likely too low.
$1,500 won’t get you a decent car. You might be better off relying on public transport or walking.
Debt consolidation or selling things might be better than going bankrupt.
If there’s no way you can repay, bankruptcy might be the only way. Disability benefits could take years, and you’d be dealing with calls and potential lawsuits until then.
I wouldn’t file for bankruptcy, but your credit is pretty much done for now.
Cut up the cards and don’t ask your mom to cosign anything.
Keaton said:
I wouldn’t file for bankruptcy, but your credit is pretty much done for now.
Cut up the cards and don’t ask your mom to cosign anything.
I cut up my credit cards months ago. My credit is already wrecked, and I’m not asking my mom to cosign.
@Phoenix
> My mom might cosign if I needed it.
You may not plan to ask, but you did mention it as an option. I still think that’s a bad idea.