Q: Q: File bankruptcy or hire a debt company like freedomdebtrelief (d0t) com? Unemployed, 61yrs w/~54k in cc debt.
Unemployment runs out before I can collect social. I have no 401k or savings, I can't pay the minimums and don't know even know which debt companies are reputable? Does using a debt company prevent me from applying another recourse later?
I've had several clients tell me that they've tried "debt relief" companies, but none were happy with the results (if any).
The going rate for a Chapter 7 bankruptcy filing, for attorneys fees plus court costs, is about $2,000, for a simple, straightforward case. It's payable prior to the filing of the case.
If you can't put that together, I recommend you try your district's legal organizations that are designed for people who can't afford to pay legal fees. Your county administrative office should be able to give you the contact information.
First - if your only income is Social Security and you have no significant assets you don't need to do anything since creditors cannot garnish SS income.
Second - I have never had a client who had anything good to say about debt consolidation companies.
I rarely file a bankruptcy for anyone on SS income alone. I usually tell them to change their phone number to avoid annoying calls.
You may be able to find an attorney who would send pointed emails to the creditors explaining your situation such that the creditors give up an go away.
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