“Dear Steve,
An illness in the 90′s led to a catastrophic financial situation. We had a devastating series of events that culminated in Ford Motor Credit winning a judgment against us when I became ill and unable to pay on my automobile loan. After I returned to work, FMC began to aggressively collect on the judgment and seized out bank account.
Our lawyer advised bankruptcy, but as we were about to file, our house burned down in the middle of the night. Now five years after the loss of our home, we haven’t gone bankrupt yet and we own a piece of land with nothing on it. We still have accounts in open collection from credit card companies, unpaid on the advice of our lawyer six years ago, yet we find ourselves in limbo and unable to move, paralyzed by our circumstances. Should we proceed with the bankruptcy? The land is worth about $14,000 if we have the well and septic certified which would cost approximately $1000.
Should we go bankrupt or sell the property that we own and attempt to negotiate settlements with our creditors so that we can get on with our lives?
Brian”
The Answer:
Dear Brian,
So how much fun has your life been for the past five years? All of this is still hanging over your head and has robbed you of five years you could have used to rebuild your financial life.
I have some questions for you.
- How much do you owe to creditors and Ford motor Credit today?
- Land is worth $X but only if you can find a cash buyer or a lender willing to finance it at the price you agree to sell it for. What would the price need to be to sell it within 90 days? Have you talked to a real estate agent about recent sales?
- What have you done in the last five years to rebuild your credit?
Please post your answers in the comments section below. I just need more information in order to help.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.