Bankruptcy Won't Do Much

Mike thinks his work problems are leading him straight to bankruptcy. That is, until he talks to Dave.

QUESTION: Mike is 60 years old and has $42,000 in student loan debt, along with $30,000 in credit card debt. He was laid off from his job and the job market is slumping. If it keeps this way, should he file bankruptcy?

ANSWER: I don’t think you’re bankrupt, you’re just jobless. Student loans are not bankruptable, so we’re just talking about the credit card debt. If you don’t pay, they’ll scream and stomp, but they won’t sue you for a while. This economy isn’t nearly as bad as the media makes it to be. You’ll land something, it will just take time. You just have a career crisis. Stay after it, keep pushing and keep looking. You may ding your credit before it does, but I wouldn’t panic at this point.