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My son is currently in treatment and rehab for prescription drug use for 60 days as an inpatient then up to 12 months in a transitional living setting. He is trying to get disability but that has not been approved yet.
Because his treatment and rehab are full time and he is restricted to 30 minutes of phone or internet time per day he has been unable to get proper advice how to take care of his bills. He has almost $15,000 dollars in unsecured outstanding loans divided between two bank loans and a credit card. He basically owns nothing but his truck. Unfortunately he will be unable to work for a few more months and unsure what that work or income will be. We have bailed him out in the past but do not want to enable or be codependents in this matter. He asked us to find some information for him due to his limited access. Should he consider bankruptcy? If so which one? If not what path should he pursue considering he has no clue when he will be gainfully employed again.

Thank You

Well, bankruptcy should be his last option. It will drop his credit score by 200 points. He can take out a secured loan from a financial institution and repay all his debts. The interest rate on a secured loan is low. So, he may find it easier to pay off the debt.

Sub: #1 posted on Sun, 07/17/2011 - 22:30


Despite the comment above, your son should not care about his credit score and he is not going to qualify for any loan since he does not have a job.

He would be looking at a Chapter 7 and, assuming he has not worked in the past 6 months, would most likely qualify as he currently has little or no income. A Chapter 7 will wipe the slate clean.

I just did a bk for a person in a ?? way house. This person could not meet with me. I did speak to him/her over the phone to confirm his/her wish to file bk but, most of my communication, including the initial conference, was with a family member. We then had someone meet with him/her at the ?? way house to review and sign the documents. (Where there is a will there is a way).

You should meet with a local bk attorney to discuss your son's options.


Sub: #2 posted on Mon, 07/18/2011 - 04:39

despritfreya despritfreya

(Posts: 170 | Credits: )

agreed on the CH7. if it were 13 he would still have to make some sort of payment. with no income i wouldn't see how thats possible.

and credit score should be the least of his worries. it WILL NOT drop by 200 points. i can personally vouch for that!

Sub: #3 posted on Wed, 08/31/2011 - 07:46

blackbeasst blackbeasst

(Posts: 196 | Credits: )

agreed on the CH7. if it were 13 he would still have to make some sort of payment. with no income i wouldn't see how thats possible.

Chapter 13 is a WAG EARNER plan...he has no income so 13 is not even a consideration.

and credit score should be the least of his worries. it WILL NOT drop by 200 points. i can personally vouch for that!

That was maybe for you especially if your credit was low to start scores can easily drop up to 200 points if accounts were current and up to date.

Sub: #4 posted on Wed, 08/31/2011 - 09:22

Moderators Cum Industry Expert
(Posts: 17272 | Credits: )

before my bk i was right around 750. i was late on all my cards by at least 6 months. my scored never went below 630.

and its already back up to 680ish after 6 months. and i can't tell you how many CC offers i've gotten since then :rolleyes:

Sub: #5 posted on Wed, 09/14/2011 - 11:26

blackbeasst blackbeasst

(Posts: 196 | Credits: )

Well, I'm ashamed to say that I've had three bankruptcy before I got smart and learned my lesson about credit cards. I now tell people I am "allergic" to credit. At this point your son needs to concentrate on his health and getting his life back on track. My recommendation is for him to file for Chapter 7 bankruptcy. His only asset is his truck and I know for a fact that the courts will not take away his only form of transportation. Like someone else said, he has no income so filing Chapter 13 is not a possibility for him. The one time we filed a Chapter 13, the Court Trustee screwed up our payments because we had back taxes and they were not paying them. We changed it to a Chapter 7, got a personal loan and paid the taxes off that way. I guarantee the time will go by fast and he will find he will be able to get credit again very soon, probably by the time he is healthy and working again. Good Luck to him....

Sub: #6 posted on Fri, 09/16/2011 - 18:43

cutekitties cutekitties

(Posts: 2 | Credits: )

I've never had to personally file bankruptcy, but thanks guys for these examples. they are very helpful to people who have never been though this sort of thing

Sub: #7 posted on Tue, 09/27/2011 - 08:50

Bsurber0908 Bsurber0908

(Posts: 5 | Credits: )

I get things in the mail about being pre approved but when I actually apply they turn me down...Did they give you a credit card?

Sub: #8 posted on Fri, 10/21/2011 - 14:54

Laura Kamont Laura Kamont

(Posts: 3 | Credits: )

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