Is It a Smart Way to Got to Get Rid of My Debt After Divorce?


Dear Steve,

Just retired in after 26 yrs. in NYS Corrections as an officer, wife left me 2017, finalized divorce in 2019, have $17,800 on 2 credit cards that are in divorce settlement that I have to pay off in minimum of 3yrs, (plus gave $25,000 to sign off on house, remortgaged house), and she gets $500 a month from my retirement check of $3200 a month!

Now with all my other bills, I’m falling behind on paying on my credit cards as I have 3 other ones also (total debt from cards, $32,000 )!!!

What is my best plan to get my total debt of credit cards paid off? This is a copy of what National Debt relief sent me. Didn’t know if this is smart to go with them or not?!

As it feels like I’m drowning and it’s hopeless, nothing is going right lately and I find all this consolidation confusing. Any help would greatly be appropriated.



Dear Pat,

Thank you for sending me a picture of the email you received from National Debt Relief.

I’m not sure why the email says “I would not recommend bankruptcy.” The salesperson doesn’t seem to provide a justification of why they would not recommend it.

For 70% or more of people who file bankruptcy, they are able to legally eliminate their debt tax-free in about ninety days and have no lingering tax consequences. It costs less than $2,000. Maybe that’s why the salesperson didn’t include that in the list of solutions in the email.

To 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.

The first fact to get clear on is that while you may have agreed to repay credit cards in the divorce, that is just an agreement between you and your ex-wife. There is nothing that prevents you from including them in a bankruptcy filing and eliminating them now.

See also  What is the Best Way for Me to Get Out of Debt?

To see what the most common solutions are to tackle problem debt, use my online get out of debt calculator.

It sounds possible that with retirement, it is tough to make ends meet. Money troubles are caused by a reduction in income or an increase in expenses. You can either focus on tackling the rapid reduction of the debt or land a new job that increases income in retirement. Alternatively, a combination of reduction and increase is another strategy.

If you want to take nearly four years to deal with your debt, go for it. But if you want to get a fresh start in three months, then you should talk to a local bankruptcy attorney who is licensed in your state. You might also want to read Those That File Bankruptcy Do Better Than Those That Don’t.

I applaud the start of your journey to dealing with your debt. More information is needed before you can make an educated and informed decision about what is best for you.

The smartest approach would be to talk to a credit counseling group, a local bankruptcy attorney, and an independent debt coach like Damon Day. You have already have been in touch with a debt settlement company.

Once you get all that information, let it percolate for a few days and then come to a conclusion about what is best for you given the facts.

If you have any lingering questions after you finish your research, come back and post it in the comments section below.


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.

Do you have a question you'd like to ask me for free? Go ahead and click here.

Damon Day - Pro Debt Coach

Follow Me
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.
Steve Rhode
Follow Me
Latest posts by Steve Rhode (see all)

2 thoughts on “Is It a Smart Way to Got to Get Rid of My Debt After Divorce?”

Leave a Comment