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Ignore the naysayers here, your brother needs to do what's best for him. Millions of Americans have, for legitimate and illegitimate reasons, filed for bankruptcy. It's just like everything else in life, there are always going to be those who will abuse a legitimate option, that doesn't mean the option is a bad thing. It means there are bad people. And, yes, there is a stigma to filing for bankruptcy. I think that is a good thing, it makes people think twice before filing for bankruptcy. Bankruptcy is intended to be the last financial lifeline for someone who is sinking in debt....and it is a legal option.
I can't help but think how amazing it is that a business owner can file for bankruptcy, perhaps six or seven times (could it be that I have a certain someone in mind, here?), and they're considered a savvy businessman. But if an individual files for bankruptcy, it's a sign of a weak character. Really? It looks like "we the people" need to hire the same PR firms businesses employ.
Have your brother contact an attorney that specializes in bankruptcy as soon as possible.
I agree with bankruptcies where there is a restructuring so that the debtor can work out a manageable repayment plan. Often the creditors will work with the debtor because they know they are making a sincere effort to pay off debt. Nothing worse than knowing someone is trying to ********* over.
Who hasn't lent money to a friend or family and they never paid it back. You never forget or trust that person again.
Ignore the naysayers here, your brother needs to do what's best for him. Millions of Americans have, for legitimate and illegitimate reasons, filed for bankruptcy. It's just like everything else in life, there are always going to be those who will abuse a legitimate option, that doesn't mean the option is a bad thing. It means there are bad people. And, yes, there is a stigma to filing for bankruptcy. I think that is a good thing, it makes people think twice before filing for bankruptcy. Bankruptcy is intended to be the last financial lifeline for someone who is sinking in debt....and it is a legal option.
I can't help but think how amazing it is that a business owner can file for bankruptcy, perhaps six or seven times (could it be that I have a certain someone in mind, here?), and they're considered a savvy businessman. But if an individual files for bankruptcy, it's a sign of a weak character. Really? It looks like "we the people" need to hire the same PR firms businesses employ.
Have your brother contact an attorney that specializes in bankruptcy as soon as possible.
Been there, done that, too. There is no shame in this.
Sorry to pile on, but whether "shame" is the correct word or not, bankruptcy to extinguish CC debt is certainly not something to aspire to, which "no shame" kind of suggests.
That having been said, if I ever found myself counseling someone in the position described by OP, I would have to agree that bankruptcy seemed to be best course of action.
Maybe that is a big part of the problem, there not being shame in doing it. No one forces a person to run up credit card debt.
I guess I am old school and believe in paying off debt.
Me, too. Other than extraordinary circumstances where health care issues and costs within a family (not mentioned by OP), people who file bankruptcy are deadbeats. And they often do it more than once. The system is a joke. I have a sister who did it TWICE in 15 years, and a neighbor who is in her 2nd bankruptcy. They laugh when they talk about, like WE'RE the chumps for paying our bills. PS: They both have the most beautiful furniture, clothing, home furnishings. And their only 'health care' issue is that they are both shopaholics.
Other who say, oh, the banks right this off, etc.....baloney! Those of us who borrow or charge items, WE pay for these deadbeats in the form of higher interest rates, fees. No free lunch.
If the guy lives only on social security, why bother with bankruptcy? They cannot collect what you don't have and at this point, there are no debtors' prisons.
The extremely high interest rates on credit cards never seem to keep people from running up debt, so why would anybody think for a minute that, if everyone paid their debts and nobody claims bankruptcy, the credit card issuers would reduce the rate?
So, if you think you are doing other cardholders a service by paying off your debts when you should be declaring Bankruptcy, you are deluded.
First, have your father put all SS checks in an account by themselves. No co mingling of assets. The collection agency cannot touch SS if it is in a dedicated account. Protect the money he has coming in. Do it now before his bank account is attached.
Contact a bankruptcy attorney. Call your father's city Bar Association. Just google the number for your city or the closest city if he lives rural. Ask for a reference to a bankruptcy attorney that works for individuals not corporations.
Get an appointment quick and gather ALL financial information
1. Credit Card bills showing the balance on each of the cards please make that the current balance
2. Gather current bills for home, car, medical, and what he pays for insurance, maintenance, taxes etc.
3. If he married (?) gather all expenses for the spouse
4. Gather the cost of chronic medical conditions, should be able to get that from their last statement from the insurer
What you are doing is painting a picture of your father's ability to pay. The fact that he is in his 70s is in his favor. he can't work, he is too old, he may have mild dementia issues that preclude him from making realistic decisions regarding what he spent 50,000 bucks on. Not to say he does, but it is, IMO, wrong to assume he was able to pay in the first place. How did he get allowance to run up that kind of debt. He doesn't have the income to service how much the CCC allowed him to spend.
Gathering this information will save you a lot of money at the lawyer's office. Have each CC card company in a different folder, each expense like utilities, maintenance, taxes, worth of home via what he pays in taxes...his home's assessment, food (guestimate), all in separate folders. The reason for this is first organization, second..if you don't do it then his/her paralegal will do it and bill you for it, third, YOU will be able to have a rational discussion as to what are your options instead of an emotional one.
If you or your father need to cry or vent do it at home. All that emotional play by play in an attorney's office is just costing you money. If your father needs counselling and I don't doubt he does request that the attorney give you the name of a person or group that deals with people that get into loads of debt. Maybe Debtors Annonymous. or something like it.
Hope that helps....I was a paralegal in my former life and I am not an attorney and please do not think this is legal advice. I am just telling you how to prepare for a very rational and down to earth discussion with your attorney that will shave a great deal off his bill. Believe me!
One more thing: Do a spreadsheet of all monthly expenses and what your father has by way of money coming in each month, second, do a spread sheet of all credit card debt and any other consumer debt (car, etc). This will give the attorney a quick assessment as soon as you walk in his/her office. They will go through it again but that is just good work practice. He isn't going to trust that all of it is there or is accurate but it will help him to know what it going on and what are your options.
Best of luck to you.
And no. These credit card companies get paid from the companies that take their cards, many people are paying interest on interest and have paid off the original debt long ago. These CC companies get coming in and going out. I have no sympathy for them AT ALL. I for one think that giving your 70 yr old father on a fixed low income the ability to rack up that much, remember the CC company allowed him to do so, is a travesty of this IMO legal loan sharking.
I am sorry...I should have said brother and noted that he is widowed.
That being said...please label each of the folders...your attorney will most likely do it over but it gives you more organization and a rational discussion.
Me, too. Other than extraordinary circumstances where health care issues and costs within a family (not mentioned by OP), people who file bankruptcy are deadbeats. And they often do it more than once. The system is a joke. I have a sister who did it TWICE in 15 years, and a neighbor who is in her 2nd bankruptcy. They laugh when they talk about, like WE'RE the chumps for paying our bills. PS: They both have the most beautiful furniture, clothing, home furnishings. And their only 'health care' issue is that they are both shopaholics.
Other who say, oh, the banks right this off, etc.....baloney! Those of us who borrow or charge items, WE pay for these deadbeats in the form of higher interest rates, fees. No free lunch.
+1.
Another favorite of mine? "I stopped paying my mortgage" now equals "We are giving the house BACK to the bank." LOL
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