Bankruptcy
Date: Sat, 07/24/2010 - 20:49
My mom and dad are in about 35,000 worth of credit card debt that has just accumulated over the years. They are nearing retirement age and my mom is unemployed right now. She has a pension coming in, along with my dad's checks every two weeks. They can begin drawing social security in about 2 years which will help. Even with that though, their monthly payments greatly exceed their monthly income and they have now ran out of savings.
My mom currently started a debt settlement program and I believe she is locked in with the contract - not too sure. But the problem is, even though that makes everything a bit better, it doesn't solve the problem at all. She is currently also trying to find a job right now but hasn't been having much luck. I think their options have ran out. My mom was too the point today where she said she was considering canceling her health insurance. First of all, she has had cancer in the past and a pre-existing condition - there is no way in hell that she can do that.....she needs her health insurance really bad right now.
Would this be a situation in which to file bankruptcy? If they did file bankruptcy, would this pretty much overrule the contract with her debt settlement company?
Thanks!
My mom currently started a debt settlement program and I believe she is locked in with the contract - not too sure. But the problem is, even though that makes everything a bit better, it doesn't solve the problem at all. She is currently also trying to find a job right now but hasn't been having much luck. I think their options have ran out. My mom was too the point today where she said she was considering canceling her health insurance. First of all, she has had cancer in the past and a pre-existing condition - there is no way in hell that she can do that.....she needs her health insurance really bad right now.
Would this be a situation in which to file bankruptcy? If they did file bankruptcy, would this pretty much overrule the contract with her debt settlement company?
Thanks!
Can you look over her debt settlement contract? Most you can ge
Can you look over her debt settlement contract? Most you can get out of. If she files bankruptcy, the court will demand the money back if they have paid over a certain amount.
If she is considering dropping health insurance, a consultation with an attorney is very much in order.
Okay - I am not too aware of the contract. But I know most state
Okay - I am not too aware of the contract. But I know most states have protection laws for these contracts and I feel as though the court would override it if bk was filed. I feel like they are simply out of options, especially considering their ages right now.
