Legal Question in Bankruptcy in Maryland

Advice on options for parents, debt consolidation, debt reduction, or bankruptcy

Hi, I am writing on behalf of my parents to best advise them. My parents are both in there 80's. My father, 81, still works full time. They have told me of approximately $55K in credit card debt they owe. In addition, a 401K loan of $43K still owed. He has aproximaly around $160K in his 401K. Their current total household income is approximately $112K, gross pay. He wants to retire but can not see how. His retirement income is only a small pension of a few hundred dollars, 401k, and social security. They both believe there is no way they are able to pay back the approximately $55K in credit card debt in their lifetime. Their credit card payments are consistently being paid late, and usually minimum payments or just a tad above. My father pays back the 401K loan biweekly from his paycheck with 4 years left to pay on the loan. My mother does not work and can not due to health reasons. If something happened to my father, she is liable for the debt. My father only has life insurance through his job. They don�t want to file for bankruptcy, but I don�t know how to advise them or where to send them for help. Maybe they can negotiate their debt. Any advice would greatly be appreciated. Thank you so much. Dave


Asked on 11/17/08, 4:41 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Advice on options for parents, debt consolidation, debt reduction, or bankruptcy

Sounds like they may need to file for bankruptcy if they want any chance of retiring. Tell them not to borrow any more from the 401(k), and to call a bankruptcy lawyer. We practice bankruptcy law throughout DC MD and VA, and would be glad to discuss this with them.

Read more
Answered on 11/17/08, 4:45 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Maryland