Gentlemen,
Medical expenses have wiped virtually all savings (including retirement account)... have maybe $5,000 left. This leaves me with about $30,000 in debt, mostly unsecured (although about $12,000 in a HELOC).
After 3 months medical leave (which didn't help), I have attempted to return to work but I can tell that even though it is a computer desk job, I will not be able to continue very long (maybe a few months so I can get some critical medical tests while I have insurance).
I will be 62 in 5 months so I will be eligible for Social Security early retirement. It isn't enough to live on, but close (with the aforementioned $5,000) enough that I would take it and file for social security disability (been informed I have a decent enough case). The advantage is that it would give me some cash flow while I await approval of the SSDI.
Obviously I wouldn't be able to pay off the debt, and I have spoken with one lawyer that advises me to do Chapter 7 bankruptcy NOW (even though I am working). I am current on all bills.
Another attorney advised me NOT to declare bankruptcy, no point, social security cannot be touched and I have no real assets (maybe $10,000 equity in Condominium) - so he said just simply default on every bill (obviously keep paying mortgage and condo fees), the net effect is the same - sure, they can sue me, but you can't get blood from a stone - change phone number and just continue on with my life.
Please note that many of my credit cards have a zero balance so there would be nothing to default on, but my two "low interest" ones carry the majority of the debt (again, mostly medical) - and I'm still charging (more medical stuff).
It feels fishy to me to just default and bear it - seems that bankruptcy would give me a legal basis to be left alone. On the other hand, defaulting on 3 credit cards (only) is appealing, but I don't know if it is better. My car is paid for (and worth $6,000), but I need to keep it. Is the argument that since I would have virtually nothing to use as an asset and only social security for an income a valid one to rule out bankruptcy vs defaulting?
Thanks for any input. I have to decide soon because I probably won't be able to work more than 6 months more.
Medical expenses have wiped virtually all savings (including retirement account)... have maybe $5,000 left. This leaves me with about $30,000 in debt, mostly unsecured (although about $12,000 in a HELOC).
After 3 months medical leave (which didn't help), I have attempted to return to work but I can tell that even though it is a computer desk job, I will not be able to continue very long (maybe a few months so I can get some critical medical tests while I have insurance).
I will be 62 in 5 months so I will be eligible for Social Security early retirement. It isn't enough to live on, but close (with the aforementioned $5,000) enough that I would take it and file for social security disability (been informed I have a decent enough case). The advantage is that it would give me some cash flow while I await approval of the SSDI.
Obviously I wouldn't be able to pay off the debt, and I have spoken with one lawyer that advises me to do Chapter 7 bankruptcy NOW (even though I am working). I am current on all bills.
Another attorney advised me NOT to declare bankruptcy, no point, social security cannot be touched and I have no real assets (maybe $10,000 equity in Condominium) - so he said just simply default on every bill (obviously keep paying mortgage and condo fees), the net effect is the same - sure, they can sue me, but you can't get blood from a stone - change phone number and just continue on with my life.
Please note that many of my credit cards have a zero balance so there would be nothing to default on, but my two "low interest" ones carry the majority of the debt (again, mostly medical) - and I'm still charging (more medical stuff).
It feels fishy to me to just default and bear it - seems that bankruptcy would give me a legal basis to be left alone. On the other hand, defaulting on 3 credit cards (only) is appealing, but I don't know if it is better. My car is paid for (and worth $6,000), but I need to keep it. Is the argument that since I would have virtually nothing to use as an asset and only social security for an income a valid one to rule out bankruptcy vs defaulting?
Thanks for any input. I have to decide soon because I probably won't be able to work more than 6 months more.