by: Jeena Cho

One of the most common questions I get from clients is “can I keep a credit card through bankruptcy?” The answer is generally “no.” For many clients who has relied on credit cards to get by on a daily basis, it’s difficult to imagine life without one. It’s important to keep the end result of bankruptcy in mind – a life without debt. Imagine being able to have a savings, a retirement fund, or your set money aside for your children’s college fund. For many who has been living paycheck to paycheck, on the edge, it’s often difficult to imagine.

In general, any debt you owe must be listed on your bankruptcy petition. This means that even if you have a balance of $1 on a credit card, it must be listed. The opposite of this is also true. If there is a $0 balance, Continue Reading »

Posted: Friday, June 26 2009 at 05:00 am CT by Bob Sullivan

Like anyone with a radio or TV, Lorena Altamirano heard the ads promising quick and painless debt relief. If there was a way to settle her debt for 50 cents on the dollar, she sure needed it.  A recent divorce had led to a nasty financial surprise: Her ex-husband’s unpaid bills had pushed her almost overnight from having virtually no debt to being $17,000 in the hole.

“I was paying everything perfectly, no problem, until the divorce,” she said. “Then the skies fell on me. These were bills he never told me about.  We were married and I was responsible, but that put me totally out of balance.”

Altamirano still had a decent job as a benefits claims processor, but she was now living paycheck to paycheck.  With a son in college, and $1,600 a month rent for her San Mateo, Continue Reading »