• Question
  • File for bankruptcy?

    Asked by a 83 year old woman from Newton, NC on 6/12/2012

    After being turned down for a reduced interest rate from my bank, Wachovia, who was in the process of being bought out by Wells Fargo & I had to deal with WF. This was immediately after the death of my husband in 2009, & the large amt of payments for 2 VISA cards, I had originally thru Wachovia, I was no longer able to pay, so they ended up in the hands of a collection agency & naturally ruined my credit. I have been struggling since to stay afloat. Have been told by some I should file bankruptcy, but I question that, if I could get a lower interest rate mortgage! Help!

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  • Categories: Bankruptcy, Retirement Planning

Answers

  • Editorial 


    NewRetirement

    San Francisco, CA

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  • We are very sorry to hear of your personal and financial troubles.

    Debt and death and retirement planning can be stressful topics. Bankruptcy is a potential option, but as you are aware, there are significant downsides to bankruptcy.

    We hope you found some information and answers in the NewRetirement Retirement Calculator:
    https://www.newretirement.com/retirement-calculator/default.aspx

    The calculator should have pointed you to the following resources:

    1) Have you considered speaking with a Financial Advisor? A fee only advisor can really assess your overall situation and identify creative solutions. You can explore prescreened advisors here:
    ----- > http://www.newretirement.com/financial-advisor-marketplace.aspx

    2) Are you eligible for a Reverse Mortgage? To qualify you must be at least 62 years old and have sufficient home equity. A Reverse Mortgage can eliminate your mortgage payments and you might qualify for enough money to pay off your credit card debt. Estimate your Reverse Mortgage loan amount here:
    ----- > https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx


    3) Have you tried talking with the collection agency and credit card companies? You can sometimes negotiate a manageable pay back plan. Sometimes -- especially if you are considering bankruptcy -- they will forgive some of the debt in exchanage for a solid payback plan.

    ----- > http://www.newretirement.com/Services/Debt_Consolidation_Negotiation.aspx

    4) Because of your credit situation, you probably will not qualify for mortgage refinancing at this time, but you can explore current rates and options here:
    ----- > http://www.newretirement.com/Services/Mortgage_Refinancing_Calculator.aspx

    5) Have you considered relocating or downsizing? Downsizing is a great way to release home equity to use for other expenses. It might also signify a fresh start for you. Learn more here:
    ----- > http://www.newretirement.com/Services/Relocation.aspx

  • Login to rate this answer:   Answered on 6/12/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.