Jackie had a bright future ahead of her. She graduated high school at the top of her class and she was accepted to one of the top colleges in her state. Jackie had received help with tuition from several sources including some grants and scholarships; however, the cost of room, board, and tuition far exceeded the funds. In addition, she needed to support herself on a part-time job because her parents were not able to help her and her course of study did not allow her to work a fulltime job. In spite of the challenges, Jackie excelled in college.
During the four years Jackie attended college, she ended up having to use credit cards to pay for everything she needed. Her part-time job provided her with sufficient income to pay the minimum payments on the credit card accounts; however, interest and new charges far exceeded the small minimum payments she made each month. As her credit card balances increased, the companies charged her higher interest rates to cover the “risk” of increasing credit limits. The minimum payments continued to grow and she progressively accumulated more debt.
When Jackie graduated college, she had accumulated tens of thousands of dollars in credit card and student loans debt. Even though Jackie had found an excellent job with a great salary and benefits, all of her disposable income was going toward the minimum payments on her credit cards and student loans each month. Some months Jackie had to choose to pay her rent instead of paying her credit card payments. She had to request deferrals on her student loans, which only resulted in higher balances as the interest continued to accrue while she was not paying the student loan payments. Jackie felt she had no way out of her financial situation.
A Bright Spot in Jackie’s Life
Jackie met Thomas about six months after she graduated from college and the two fell in love quickly. They shared the same interests, had the same moral views, and spent all of their time together. During this time, Jackie continued to struggle to pay her credit card debt and her student loan debt. She was embarrassed about her financial situation and hid the problem from Thomas. After a couple of years, Thomas asked Jackie to move in with him and to marry him. Jackie was elated but she knew that she could not begin her new life with Thomas without telling him about her financial situation.
Thomas understood; however, he did not want to take on Jackie’s debt or begin their married life in debt. Jackie had considered the possibility of filing bankruptcy but she was frightened by the “horror stories” she had heard and read. Thomas had heard of an Eagan Minnesota bankruptcy firm with an excellent reputation for customer service and for achieving positive results for their clients, and promised Jackie that he would go to the free consultation with her.
Jackie’s Love Story has a Happy Ending
Jackie met with the Eagan Minnesota bankruptcy attorneys of Kain & Scott to discuss her options for getting out of debt. After reviewing Jackie’s current financial situation, the attorney explained all of her various options to resolve her debt problem, including the pros and cons of filing a Chapter 7 bankruptcy case. Jackie’s financial situation qualified for a Chapter 7 case and the attorney strongly advised that this would be the best option in Jackie’s situation.
After considering what the attorney said, Jackie decided to file a Chapter 7 bankruptcy case. The bankruptcy filing eliminated all of Jackie’s credit card debt, which was the majority of her debt problem. Even though her bankruptcy filing did not discharge her student loans, the payments are now much more manageable because she does not have to worry about the credit card payments. Jackie was able to consolidate her student loans and schedule an automatic draft to lower the interest rate on the loans.
In a much better financial position, Jackie married Thomas last year. They are planning to purchase a new home early next year and begin their family. If Jackie had not decided to file bankruptcy, she would still be struggling to pay her credit card debt and could be facing potential lawsuits or other collection efforts. Filing bankruptcy was the best and most affordable solution for Jackie’s debt problem.