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[quote=Anonymous][quote=Anonymous]Do you really think she would be able to buy a condo with her income after declaring bankruptcy? I don’t think so. [/quote]

One thing I am sure of is that if she stays on the course she's on now, she will not be in a position to buy anything in 7-10 years. It'll take her 5-7 years just to pay of of the car and the credit card debt!  And she will have a hard time going back to school if she has to work extra hours to clear this debt.

So yes. Getting the debt discharged due to bankruptcy would allow her to go back to school, increase her salary, and start saving for retirement and a downpayment for a house or a condo. Yes, her credit rating will sink for a while; but it'll take her some time to save up the downpayment anyhow.

Plenty of people manage to buy a house even after bankruptcy. I'm reading that even to get a FHA loan, you typically just need to wait 2-3 years after a Chapter 7 bankruptcy.

https://www.fha.com/fha_article?id=305

I'm reading that for other types of loans, you can usually get a mortgage 4 years after a chapter 7 bankruptcy.

https://www.bankrate.com/mortgages/how-to-get-a-mortgage-after-bankruptcy/#how-soon

Yes, interest rates may be higher. But a bankruptcy is not the end of the world and it is exactly made for OP's situation.

[quote]OP’s situation is very bad and she would need money for a lot of other things and the only thing she can do is to increase her salary and may be suck it up and go to school.[/quote]

Her situation isn't horrible. Her kids are grown, she earns enough to live on. But she's not going to be able to get ahead. And she can't earn a ton of money with overtime to pay down her escalating debt - she is in a physically demanding job, and is not in great health.

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