I Don’t Want to File Bankruptcy Again But I’m in Debt Trouble


Dear Steve,

I’ve gone bankrupt two times, which is not on my credit report and not an option this time.

I have too many revolving credit accounts with balances that I have not paid for four years. FICO scores are 510 and below. With four in collections and four judgments.

I have been to your seminars in the past. However, I am in a different dilemma since I have not paid my accounts since 2017.

I tried to get a secured card online and failed. It probably was a mistake. Since I had Almagated before, I thought they would help me again.

I need good credit to find a home. I have a new job ( 2 months) and make approximately 30,000 or less a year.

I highly value your information, and now what you say works. Please help. Thank you

Should I use Allen Micheal again? Which revolving accounts to pay? Will paying the revolving help my Credit score.



Dear Sherri,

Thank you for the trust in asking me a question yet again.

I understand you have filed for bankruptcy previously, but I’m not convinced it is something to be excluded for an emotional reason.

Bankruptcy is a legal tool to eliminate debt you can’t reasonably or possibly afford to pay given a set of circumstances. A Chapter 7 bankruptcy eliminates your debt in 90 to 120 days and gives you a fresh start. Read Those That File Bankruptcy Do Better Than Those That Don’t.

The issue here is not that you previously filed bankruptcy but that you were extended credit that, for whatever reason, you are unable to pay. The collections and judgments are an indication this has been going on for some time. Plus, you say you have not paid on your accounts since 2017.

Given your annual income and the amount of debt, I don’t think any solution would be more appropriate than filing bankruptcy.

You can have substantially better credit within a year of filing bankruptcy. Read my guide here.

See also  Bankruptcy California

You seem to want to resolve your situation quickly to buy a home, and without paying the debt off in full right now, I’m not convinced bankruptcy isn’t the right solution to investigate first to achieve your goals best.

I would strongly suggest you 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.


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Damon Day - Pro Debt Coach

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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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4 thoughts on “I Don’t Want to File Bankruptcy Again But I’m in Debt Trouble”

  1. I have a home in Arizona an someone living there which is complicated. He says I could lose the house if I go bankruptcy. He is also invested in property. There is look back the trustees can see fraud, which I am not proud of. That’s why I don’t want to go bankruptcy. I need to move on with my finances.
    I am in position now, with my friends with no rent for a year to get back on my feet.

    You are correct with idea going bankruptcy, except it’s more complicated for me. So, do you have any more ideas? T
    Also, sorry for the confusion with Stephen Snyder seminars, which was approximately 10 or more years ago.

    Thank you for your time.

    • From what you shared your debt potentially exceeds your ability to repay on your income. Additionally, the amount of money you would lose by not dealing with the debt promptly is huge. See what the long-term costs of dragging out repayment will be in saving for retirement. https://getoutofdebt.org//51244/debt-repayment-calculator-retirement

      You could hope additional creditors don’t sue you and that the life of the judgments you have now is not that long. Then you’d have to wait years for that to expire or fall off your credit report.

      However, if you own a home and a creditor discovered that they could go for a lien on the property.

      I understand your desire to not involve the home in Arizona but before you can make any decisions you need to consult with a bankruptcy attorney in your State.

      You have two issues here. The first is the best way to deal with your debt so you can turn your financial life around. The second is the issue of the property. If the property is more important to you than your financial health and future then do nothing and hope the creditors don’t discover your interest in the property and go after it.


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