I Was Medically Retired from the U.S. Navy and Can’t Pay My Bills. – Floyd

“Dear Steve,

I was medically retired from the U. S. Navy in November of 2007 after a crippling back injury at the age of 34 (I am 36 now).

After living in Virginia Beach for 6 months, and tapping my savings account every month to make ends meet, I opted to just move overseas where I can actually afford to live on about $1200 a month. I have no assets other than a little bit left in my savings account with a credit union, and with my current disability rating, I just am not bringing in enough money each month to pay my credit cards and still maintain any sort of comfortable lifestyle.

The (Veterans Administration) VA has denied me any increase in disability percentage, and Social Security has also denied me any benefits. Both cases are under appeal, but it really isn’t looking good since living overseas I can’t get any sort of decent representation to help me plead my case…

I am currently paying around $350/month to various credit card agencies and have a current credit score over 795. What is stopping me (other than moral obligation) to just stop paying my credit cards? Since I only receive a government income, and they cannot garnish my wages, what can they really do to me other than slam my credit rating? With no plans on moving back to the United States anytime soon, having 1 current credit card that I keep in good standing for emergencies, and being able to pay for everything in cash here, how long will not paying the other companies destroy my credit for, and isn’t that really a fair price to pay for being able to put food on the table and clothes on my back? Declaring bankruptcy isn’t on the table as an option…

Thank you for your time and consideration,



p.s. I do have additional documentation that I can provide regarding my issues with the SSA as well as the VA if you know of anybody that would be willing to help me with my claims. Bottom line there is that they are dragging their feet and finding loopholes so they don’t have to pay me I am entitled to.”

Dear Floyd,

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Sorry to hear about your situation. The best course of action would be for you to go bankrupt on that debt and close the door on it. If you just ignore it, it will not go away and you can be dealing with this for the rest of your life as it is sold, sold again, and resold.

I’m glad you found a less expensive place to live but you never know if some situation may arise in the future and you might want to come back to the U.S. again.

The time limit to file bankruptcy after leaving the U.S. is limited so click here to find a local bankruptcy attorney you like. Use you last address in the U.S. to find an attorney in the right area.

Bankruptcy is going to not be any more harmful than if you just stopped paying the debt and let it roll down hill into collections and a lawsuit. After the bankruptcy you can use a secured card to rebuild the credit and access funds in the U.S.

Why do you say bankruptcy isn’t an option?

Please update me on your progress by

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.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

Steve Rhode
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