Bankruptcy with excellent payment history but too much debt
Ok, seeking advice for this situation: Credit card debt only. (cards from 3-6 years old) No other debts. Excellent credit, to now...(pay on time, over minimum, never late.) Own nothing. Self-employed thus un-employed past two+years. Debt: $55K.
All was well, parents are elderly, left CA a little over two years ago to check in on them...situation not good...mother passed a couple of months ago...father, I can't leave yet. Due to this, I have earned no income (freelance writer) since my arrival, as Mother's condition was a 24/7 committment during that time but, living on my savings, I managed to keep things up as long as the rules of the game did not change. Then...
One company, (card opened in '98 or '99 through a different company....to another company.....during the process of merging with an even different company) decided to raise the interest from 9.99% to 24% because "balances were high"; not over, not late....high. My alternatives were to either pay the percent increase or close my account ($24K on $29.5K limit) to keep the interest at 9.99%. I did that after protesting to the Attorney General, etc. This was last year.
After paying on time, using the same account number for over a year, a wrong account number was accidently given for payment and corrected IMMEDIATELY upon knowledge... the interest raised to 29% ( after being assured they understood and informed it would not affect anything ) a month later, in February. Until now, I had not been behind or late, but it's made it impossible to keep up and go no where. SO...
I contacted a consumer debt counselor who told me the card in question could not be included because the account had been closed. My savings is seriously depleting (virtually depleted!), and because most of my debt is due to someone else (who helps in paying), I have no trouble with keeping the remaining accounts current ( and wouldn't have had with this one). This one, however, wants 582/mo. in interest alone.
Although I hate to include my other creditors with whom I have no trouble, low interest, etc. I feel that if I let one go, they'll all eventually fail because of it. If I file bankrupcy, I've been told I must list all because my credit will be ruined anyway. I can file either in California or Illinois. Note too, that, although the bulk of the debt is paid by someone else, it is in my name.... and I have nothing tangible to lose. Would you recommend bankrupcy as a viable alternative to...???? Any thoughts?
Bankruptcy & Credit Card Debt
You owe $55,000.00, all on credit cards? And one credit card alone is adding to that amount about $8,000 per year in interest? And you have no income?
I do think you should discuss your situation with a bankruptcy attorney. As painful as you may find it to declare bankruptcy, and as much damage as it can do to your credit, no other obvious solutions present themselves.