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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I pay my mortgage on time each month, and I pay my expenses

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I pay my mortgage on time each month, and I pay my expenses and monthly bills on time (mostly) and I have 4 cars that I own outright and one that I'm still making payments on, and now I have two sons in college that are using me to assist with their college loans, one of which is going to come due next month. I also have a husband that has been unemployed for a year and a half and we are living off of his unemployment, retirement, and my salary. I/we owe $50,000 on two credit cards (both at $25,000 each) and I can't afford those monthly payments. Please help me to decide (oh, by the way, I'm 60 and live in Colorado) if I should choose bankruptcy and if so, how? and what kind? and what are the ramifications to my credit if I do or don't and continue to be behind in those two payments?

I was keeping up with all of our payments on these credit cards until last month. BUT I'm also filing for divorce and want to do this (if bankruptcy is the right thing) while we're still married, so it will affect both of us equally.

You may want to consider a chapter 13 bankruptcy. I will explain.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Colorado:

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,
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