How long do you think you’ll be unable to work? If it’s permanent, bankruptcy might make sense. If you can go back to work in a year, try talking to your creditors for payment adjustments and see if you can manage without ruining your credit.
Just stop paying. You don’t need to file for bankruptcy. Your credit will be bad either way. Notify your creditors that you’re disabled and not paying. They might charge it off, and your credit will bounce back quickly afterward.
Look into public assistance programs like SNAP and phone assistance. Use anything you’re eligible for.
Good luck! Being disabled shouldn’t be shameful. I’m proud to support social programs that help people like you.
Focus on making what payments you can. Let things go to collections if needed. They can’t garnish disability wages.
You’re judgment-proof, so even if someone sues you, they can’t collect. Unless you plan to own a car, house, or work full-time soon, there’s no need to file for bankruptcy. You can still file later if something changes.
Disability takes forever to get approved. I’d think about bankruptcy if it’s your only option. I filed for $20k of debt back in 2017, paid the lawyer with a tax refund, and kept my car because I was paying it off before my debts were discharged. A few years later, I used credit cards to boost my score, and I’m now in the 700s. I even bought a house last year.
Avoid applying for 0% APR balance transfers right now, your credit might be too low.
$1,500 isn’t enough for a decent car. You might have to rely on walking or public transport.
Consolidating your debt or selling things might be better options than bankruptcy.
If it’s clear you won’t be able to pay, bankruptcy might be your only option. Disability could take years, and you’d face creditor calls and lawsuits in the meantime.
I wouldn’t go the bankruptcy route, but your credit is shot for now. Cut up the credit cards, and don’t ask your mom to cosign anything.
Miller said:
I wouldn’t go the bankruptcy route, but your credit is shot for now. Cut up the credit cards, and don’t ask your mom to cosign anything.
I already cut up my credit cards months ago. My credit’s trashed, and I’m not asking my mom to cosign anything.
@Ari
> My mom might cosign if I really needed it.
You mentioned it as an option. I still think it’s a bad idea for her to cosign anything.