Q: If I come into money, should I just pay off all my debt or just declare bankruptcy

A: You are eligible for a bankruptcy discharge of debt every eight years.

Use it wisely.

Without a full disclosure of your financial situation, and your prospects for future income, it is not possible to offer a recommendation of bankruptcy, or not.

A key element for you is whether your expected "money" falls within one of the applicable exempt properties categories. If so, if you can live on your money on top of your earnings (substantially exempt in most states), that is certainly a factor to consider, as you can keep creditors away from most of your assets.

Speak with an experienced bankruptcy attorney who you will provide with a full financial disclosure, both present and future.

A: Deciding between paying off your debt or declaring bankruptcy depends on your overall financial situation. If you have enough money to pay off a significant portion of your $133,000 debt, it might help you avoid the long-term impact of bankruptcy. However, if paying off your debt would leave you without enough resources to cover living expenses, bankruptcy might offer a path to relief and a fresh start.

Bankruptcy does have serious consequences, like affecting your credit for years, but with a credit score already at 472, it might be less of a concern. Bankruptcy could discharge some or all of your debt, giving you a clean slate, though you'd need to evaluate whether it's the right step for your long-term financial health.

Before making a decision, weigh how much money you’re coming into, whether you can negotiate with creditors, and how each option will impact your financial future. Taking the time to explore all possibilities will help you choose the option that fits your needs.