bankruptcy suze orman
On the verge of bankruptcy, I received an inheritance; what do I do?
WE LOST OUR PRIMARY RESIDENCE, A NICE HOUSE IN A GOLF COURSE COMMUNITY, WHEN MY REAL-ESTATE-LINKED BUSINESS WENT DOWN IN THE HARD TIMES. WE MOVED TO OUR SMALLER HOUSE WHICH WE HAD BEEN RENTING. MY BUSINESS EQUIPMENT AND NICE HOME IS BEING REPO’D, I AM 65 YEARS OLD BUT STILL TRYING TO RUN MY BUSINESS AT HALF-SPEED. I RECEIVED ENOUGH MONEY TO EITHER PAY DOWN MOST OF MY MORTGAGE ON THE SMALLER PROPERTY OR PAY OFF THE DEBTS AND NOT DECLARE BANKRUPTCY–BUT THIS WOULD FORCE ME TO CONTINUE TRYING TO CARRY THE HIGH DEBT LOAD THAT GOT ME IN TROUBLE IN THE FIRST PLACE! (CHAMPAGNE PAYMENTS ON A BEER INCOME). I AM HOPING THIS ONE GOES TO SUZE ORMAN. THANKS, APACHE BOB.
If I were in your shoes, I would take the inheritance and pay off the debts to stay out bankruptcy. If you didn’t have the high debt load, you could handle the house.
I follow the Dave Ramsey plan and so home mortgage would come later in the ‘Baby Steps’. First step is to get a starter emergency fund of $1,000. Second step is to pay off all debt except for the house. Third setup is to have a fully funded emergency fund of of 3 to 6 months of expenses. The remaining steps include saving for retirement, funding college for the kids, and paying off the house early.
Of course before you start this you need to make sure that everything is current, you have a written budget that you are living on, and that live on less than you make and pay cash for what you need. Because if you’re in hole, stop digging!
