sergiofarias
Jan 16, 2008, 12:50 AM
Hello I am asking your opinion because I cannot seem to figure out what the best case scenario is. Make a very long story short I am in serious trouble, I invested in a business which is bankrupt (for many unfortunate reasons). I owe about $80,000.00 dlls in credit card debt due to this business and the minimum monthly payments are $1,500.00 dlls a month. Up to now the business had been paying the credit cards but it is no longer able to do so. So I am faced with paying them now. As of now I have not been late on any cards and my interest rate on all of them is less than 9%. After all is said and done I have no excess cash, my wife an I both work and between my personal debt $50,000.00 ($30,000 is attributed to the business which I invested in cash and never saw it again and put some home remodeling on my card because I was told I would have the money back in 6 months but never did) and the minimums on these is about $1,000.00 a month plus car payments, food etc. and my mortgage ( I have no equity in my house to dip in to) I cannot make the minimums on these cards, I have about $60,000.00 in my 401k and was thinking about cashing out and paying off part of the debt to make it more manageable or should I consider bankruptcy. I have been struggling with this decision for about a year now and it has come down to the wire and need to make a call. I know people tell me not to cash out my 401k, but I also wonder what good it will do if I get sick over this and drop! (not trying to be dramatic just stating a possibility) or should I file for bankruptcy if I qualify. Any help wold be appreciated:confused: :confused: :( :confused: :(