Credit card debt and unemployed

August 27th, 2012 by Questions

My son has just advised us he has been laid off from his job, then he continued to advise us that he has about $10,000 in credit card debt that he now has no way of paying. I am not sure if he qualifies for unemployment but he wouldn’t make enough to even cover his min payments (he has 3 card). What can he do?

Posted from: Ontario

Questions

One Response to “Credit card debt and unemployed”



, A licensed trustee said:

I suggest he start by taking a few days to “sort things out”. It is good that you are researching his options, but he shouldn’t rush out and do anything until he has a better understanding of his situation. Whether or not he will beeligible for EI is fairly important, equally important is whether or not he thinks he is likley to find a new job in the near future.

As far as his debts go, he has the right to file either bankruptcy or a consumer proposal to deal with his debts, but I wouldn’t recommend either for $10,000 worth of debt – at least not yet anyway.

He should contact the credit card companies and let them know what has happened – they may give him 2 or 3 months of dramaticaly reduced payments (just to give him time to find a new job).

While your son has no income there is very little any of his creditors can do to him. You can’t get blood from a stone and if he doesn’t have any income they’ll just have to wait…

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)