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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12421
Experience:  JD, MBA
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I purchased my mothers home to move her closer to me since

Customer Question

I purchased my mother's home to move her closer to me since she needs help and it is worth 1/2 of what I paid plus my own home mortgage is higher than its value AND I had to close a company I started and have a combination of $120K of credit card debt. My income has declined by so much that all I can pay on the credit cards are interest so will have to pay forever. Should I consider Ch. 11 bankruptcy or try and get the credit card companies and mortgage holders to reduce the principal in exchange for making lower payments? Once additional consideration is that I own an office condo that has neutral cash flow with equity of approx. $80K after paying capital gains if I could find a buyer.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 6 years ago.
Hello and thank you for allowing me the opportunity to assist you.

It sounds to me like you are a prime candidate for bankruptcy. Unless you earn several hundred thousand dollars a year, the debts seem to be insurmountable. I think that you should seriously consider bankruptcy (and thus, make an appointment with a local bankruptcy attorney who can review your situation in greater detail and advise accordingly). It's possible that the creditors will modify the terms of the loans, or agree to forgive some of the debt, but it wouldn't likely be to such an extent that you're only paying pennies on the dollar ... at least not until you're already on the brink of bankruptcy. Also, none of the creditors will likely work with you to modify anything until you're already in default, and therefore, your credit will be damaged even if you don't file for bankruptcy. The bottom line is that I think that bankruptcy is probably going to be the best option, though it's possible that you (or your attorney) could negotiate away some of the debt.

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