My sister needs advice. Her husband has been out of work for 5 months and is having trouble finding work. She is 4 months pregnant and makes minimum wage. Total credit card debt is about $70k. She looked into filing for bankruptcy, but they will loose their house if she does. She has about $5000 in cash and about $12000 in a retirment account. Should she use the cash and retirement to payoff some debt? Her hubby does not see the seriousness of the situation and is not trying very hard to find work. Is it better to keep the cash available and try to work with the credit card companies to reduce her payments which she cannot afford on her salary alone? Where should she start? Any advice would be greatly appreciated.
Thanks.

They don't have much to collect. Most of her wages are exempt anyway, methinks. What state are you in? I need to know to tailor my response.

Most likely, she is judgment proof anyway. I wouldn't pay at all, if they can't come after anything anyway.

Your state name is the key. This should be cut and dry.


Jon
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The preceding is not legal advice, is not from a licensed debt counselor, and is not provided to persons from states which providing such information requires a license.