#DebtHelp #CreditCardDebt #BankruptcyAdvice
Understanding the Situation
Living with a family member can be a wonderful experience, but when unexpected financial challenges arise, it can put a strain on everyone involved. If you find yourself in a similar situation where a loved one has accumulated a significant amount of debt while living under your roof, it’s essential to address the issue promptly and seek out solutions to help them overcome this financial burden.
Assessing the Financial Situation
Before jumping into any decisions, it’s crucial to fully understand the extent of the debt and the financial capabilities of the individual in question. In this case, the mother living with you has accumulated $35k in credit card debt while making $650 a week in cash and having around $600 in monthly expenses. This means that a substantial portion of her income is going towards paying off her debts, leaving little room for her to build a financial cushion or plan for the future.
Exploring Bankruptcy as an Option
Bankruptcy can be a viable solution for individuals who find themselves overwhelmed by debt and are unable to repay it in a reasonable timeframe. It provides a legal process to eliminate or restructure debt, giving the debtor a fresh start financially. However, before proceeding with bankruptcy, it’s essential to weigh the pros and cons and understand the implications it may have on one’s financial future.
Understanding the Bankruptcy Process
When considering bankruptcy as an option, it’s essential to be aware of the process and timeline involved. In the case of your mother filing for bankruptcy in Illinois, it typically takes around 3-6 months for a Chapter 7 bankruptcy to be completed and for debts to be discharged. However, it’s important to note that bankruptcy will remain on one’s credit report for 7-10 years, impacting one’s ability to qualify for loans, credit cards, or other financial products.
Seeking Professional Help
Navigating the complexities of bankruptcy can be overwhelming, especially for individuals who are unfamiliar with the process. To ensure that your mother receives the proper guidance and support, it’s advisable to consult with a bankruptcy attorney who can provide personalized advice based on her unique financial situation. A legal professional can help assess the best course of action and guide her through the bankruptcy process, ensuring that her rights are protected and her debts are resolved efficiently.
In conclusion, dealing with a loved one’s significant debt can be challenging, but with proactive steps and the right support, it is possible to overcome this financial hurdle. By exploring options such as bankruptcy and seeking professional guidance, your mother can work towards a debt-free future and regain financial stability. Remember that open communication, empathy, and support are key in navigating this difficult situation and finding a positive resolution for all parties involved.
I don’t want to pry too much here, but how old is your mother and how is her health?
She is likely going to need to file for bankruptcy and it’s going to be problematic with her “$650 a week in cash” if “in cash” here means she is being paid without withholding taxes — i.e. “under the table”.
Be aware that this all sounds like your mother is going to be living with you for the foreseeable future if she does not have the ability to manage her own finances – or she will be impoverished
> How long does it take for that to get cleaned off her record?
Depends on what exactly you mean by “cleaned.”
Could be 7-10 years before it falls off of a credit report.
* https://www.experian.com/blogs/ask-experian/when-does-bankruptcy-fall-off-my-credit-report/#:~:text=A%20bankruptcy%20drops%20off%20your,on%20scores%20lessens%20over%20time.
But your goal is probably not “cleaned off her record.”
Your goal is probably more like: “I want Mom out from under my roof. How do I get her good enough for that?”
You have to provide more info, please give your mother’s age and if that 650 is from social security or not
she is 60 years old and yes the $650 a week is in cash.
I don’t see how her monthly expenses can be $600 when the minimum payments on 35k of credit card debt would be higher than that by itself.
yeah at 60 have her do bankruptcy.n tell her to get her own place
Bankruptcy will make it harder for her to find a place to live. A lot of places will run credit checks.
Was she living with you rent free? If so do you think things will change when she moves out or will she just be moving back in with you in a few years because she can’t manage her money?
I’m not sure if anyone else mentioned this yet, but if she is getting paid under the table now, do you know if she has ever had above board wages? I ask because you have to find out if she will ever be able to collect social security. If not, I agree with others that she will end up living with you forever.
The math just isn’t mathing. So it’s been over 4 years since covid shutdowns. if we’re using that as the age of the debt then that means she added $8750/yr in debt annually over 4 years, annual expenses are $7200/yr and her income is $33,800/yr. Where did the remaining $17,850/yr go, that should be around $71,400 over 4 years.
What’s wrong with her staying with you? She clearly can’t live on her own. For gods sake she raised you dude..