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Musicgirly81

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Is bankruptcy the right choice?
I'm 35 with a 2 year old. I have $30,000 in credit card debt with about $100k in student loans, all from pursuing a graduate degree and then working in a field that did not pay much. I recently lost y job through a restructure and my boyfriend and I have remained unmarried for financial reasons until we are in a position to own a home. My payments have always been on time, but now without income, it will be very tough to make even minimum payments. My bf suggested Chapter 7 bankruptcy, but it seems like giving up. What are your suggestions?

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Speak w/Bankruptcy Attorney

I suggest you speak with a bankruptcy attorney.  Know going in that student loans will not be discharged, so that debt remains.  Bankruptcy can discharge the credit card debt and give you a fresh start.  Know that the bankruptcy willl stay on your credit report for 10 years and will not be removed any sooner.

If you are looking to purchase a home, you will need to wait approximately 2-3 years--few banks will loan with a fresh bankruptcy.  I would also suggest that you call the Department of Education to inform them of your current employment situation to see if you can get you monthly payment lowered if need be.

All in all, your first stop should be a bankruptcy attorney.

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