No. of Recommendations: 7
Well like so many of us at age 62 now I am one that is approaching the end of a working career top point. Then the jobs that will be available are much lower in salary.

Are you planning on quitting? Have you been given notice of a layoff? Why are you assuming your income is decreasing?

I have spoken with an attorney and he and I agree I will not have the means to pay it off. We had only a brief conservation

Why not? Are you planning on declaring BK? Or are you going to try to just quit paying?

I have made all my payments on time and not used the card in the past 24 months.

Then you having been paying the debt down? How much has it decreased in the past 24 months?

A- What are my options?

- Pay the debt off
- Quit paying and deal with debt collectors
- Go for credit counseling and execute a plan to pay off your debt
- Declare bankruptcy

I drive a car worth 2,800 dollars and it is paid for.

Different states have different rules on how much value in auto equity you are allowed to keep in BK. $2800 is not a high value, but because many debtors have big car loans, they don't even have as much equity as you do. You probably want to check your state's law on the value of the auto you can keep in BK.

I live have no house payment.

Do you own the house you live in? If you have equity in a house that is above your state's limit in BK, you may be forced to sell your house, or borrow against your house to pay other creditors if you don't want to sell.

My spouse works too and is my age. Her annual income is 30,000 per year. My annual income is 60,000 per year.

On $90k a year with no house payment and no car payment, why haven't you been able to pay off your debt? What are you spending your money on?

Even if you get rid of your debt through BK, if you can't live on $90k a year without having a house payment and without having a car payment, how are you planning on supporting the same lifestyle in retirement, or when you end up in one of those lower paying jobs? After all, minimum payments on $45k in debt at the absolute max (30%+ rates) is unlikely to be more than $1350/month. That's only $16,200/year, or 27% of your annual income, 18% of your combined income. What are you spending the other 73% of your income (82% of your combined income) on if you don't have a house payment and you don't have a car payment?

B- What is the likely hood of the CC organizations doing a given suggestion.
C- What is the down side
D- Will they give me a large break or will I need to erase it all?


Well, the answers to these questions all depend on the solution you choose to pursue. You can examine your lifestyle and choose to make changes in order to pay it off yourself. You can erase it all by declaring BK. By executing a debt payoff plan by using credit counseling, you might be able to get some debt forgiveness or interest rate breaks from your creditors, or, maybe not, with your income. You can deal with debt collector if you choose to just quit paying.

Is there a calculation that is used to see what the CC organization can obtain from me Max per month?

If you choose to just quit paying and ignore the debt, they can garnish your wages. As Joel indicated, the federal maximum on garnishments is 25%, but states also have rules on the amount that can be garnished. For your income, that would be $15k/year. Depending on the fees and interest that you will be charged for the credit card company to execute the garnishment, you might get it all paid off in 5 or 6 years. If your wife is joint on any of the accounts, they could garnish her wages, too. That would add an extra $7.5k/year to the mix, and maybe drop your payoff time by a year or two.

If you choose BK, your assets, subject to state limits, are all up for grabs to pay off the debt.

If you choose to go through credit counseling, they will work with you to set up a budget and make payments on the debt. However, with no house payment and no car payment, you don't seem to have a lot of fixed expenses. That would meant that most of your income, other than taxes, would probably be looked at as being available for repayment, especially since your wife's income should be available to provide food and other necessities. If you could put $30k/year (50% of your income, 1/3 of your joint income) towards debt repayment, you should be able to repay the debt in less than 2 years, and that would still leave you and your wife $60k annually for taxes and all living expenses. Since you don't have a house payment and you don't have a car payment, my guess is that many credit counseling agencies would think that's a workable budget for most couples. Why wouldn't it be for you?

AJ
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