Getting Out of Debt How To Get Out Of Debt

I Left a Good Job in the City

Written by Steve Rhode


Dear Steve,

I’m a 57-year-old female. “Left a good job in the city” at 38 to raise my two boys as a single parent. I started a part-time massage therapy business that was not able to make ends meet. I have a very low credit score. In collection. Some charged off. currently not working because of rheumatoid arthritis. looking for part-time work. I owe federal student loan, past IRS, past state tax.

Where do I begin to clean, and or clear any or fix my credit rating/score?



Dear Leah,

If your federal tax debt is more than three years old you can discharge it in bankruptcy. Talk to a local bankruptcy attorney. You can find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.

That would also deal with your collection and charged off items as well most likely.

On the state tax, you can attempt to reach a repayment arrangement with them but before you do that you really need a good grip on your overall income and expenses after you file bankruptcy. The last thing you want to do is overpromise a payment you can’t afford.

For the federal student loan debt, the easiest solution is to consolidate your federal loans in a new direct loan and opt to repay it through an income-driven repayment program that is best for you.

After bankruptcy, you can quickly rebuild your credit score by following this.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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