Finding a Way Forward

Finding a Way Forward: How WLP Helped Rick Tackle Debt Without Bankruptcy

Rick, a WorkLife Partnership client, called me looking for help with credit card debt. Previously, Rick had lived in a shelter, struggled to find stable housing, and had used credit cards to make ends meet. Rick said that his job was going great, he was getting plenty of hours and, fortunately, he was not behind on rent, utilities, or his car payment.

After an initial discussion, I referred Rick to a debt counselor and provided some ways he might reduce expenses. Some time later, Rick advised me that he and the counselor had been unable to agree on a workable plan to resolve his credit card debt. He seemed determined to file for bankruptcy, and sought my help to initiate the process.

After reviewing the Change Machine bankruptcy courses, I felt confident about walking Rick through his options. After some probing questions, Rick confided that his debt was only about five thousand dollars, spread across several retail credit cards. Together, we weighed the pros and cons of declaring bankruptcy for a sum that he could probably figure out a way pay down. I explained the different types of bankruptcy, the related costs, and the effect it would have on his current and future credit.

Ultimately, Rick decided it would be more advantageous for him to strive to make minimum monthly credit card payments, or negotiate repayment with the creditors directly, than it would be to file for bankruptcy.

After our meetings, Rick expressed that he felt far less stressed and more comfortable about his situation moving forward.