Hello, I am a resident of Washington state and my brother is a resident of New Mexico. He has two debts that he is unable to keep up the payments for 1) credit card debt, approx. $14,000, 21% interest and 2) a bank loan
, approx. $28,000, $800 a month payment secured by personal property. In addition he has a $200,000 mortgage and has borrowed $14,000 from his 401k that is being paid back through payroll deductions of $500 per month. His salary is about $45,000-$50,000 a year. I would like to help him out but I am fearful he will repeat this cycle. I will either 1) let him go through bankruptcy or 2) payoff his credit card and personal property bank loan and write up a contract
where he pays back the money over a 20 year period with no interest and secure the loan with stipulations that he go to credit counseling
, incur no further personal or credit card debt and prepare a monthly budget. I would let him go through bankruptcy but I am worried about the ramifications for his future employment and for my sister in laws future employment.
JA: Since estate law varies from place to place, can you tell me what state this is in?
Customer: He lives in New Mexico and I live in Washington
JA: Has anything been filed or reported?
JA: Anything else you want the lawyer to know before I connect you?
Customer: did you see the information about his debts that I typed?