I live in California and this pertains to credit card debt. Due to heart attack and related charges I couldn't pay my credit cards. I really...

Question

I live in California and this pertains to credit card debt. Due to heart attack and related charges I couldn't pay my credit cards. I really thought I could turn things around but could not and and drained all my savings. I am trying hard to get back on my feet financially ASAP but realistically it could take 6 mos to a year.

I had excellent credit before over 30 years never even a late payment but I realize that good credit is long gone now. My concern now is how can I avoid any future lawsuits. I have enough stress already.

I have been reading up on my options. Is there any alternative to declaring bankruptcy to avoid getting sued over my credit card debt? Thank you.

Answer

You have three options. 1. Start paying on the credit cards again with one large payment to get "caught up". This is not very realistic given your current financial condition. 2. Negotiate a payment plan and/or pay-off with the credit cards. This only works if you have sufficient cash to pay-off the debt in one lump sum, which, again, does not sound realistic. 3. File for bankruptcy relief. This is the most realistic option and will provide you with complete relief and assurance that you would not be sued in the future. A side benefit is that your stress level will go down and you feel much better and be able to "get back on your feet" much quicker.