We’ve Been Struggling for Two Years Now. Veronica

“Dear Steve,

Hi there. I came across your video on youtube and then your website. My husband and I have been struggling for 2 years and think that our only option at this point is going to be bankruptcy. My husband is a self employed painting contractor. I am at home full time with our 3 small children. We live in Sacramento, CA. There was a period from December 2008 to March of 2009 where we only had two jobs come in. Luckily we had family and friends able to help us. Our last mortgage payment was December 2008. We have a first with BofA and a second with Chase. We have begged and pleaded with BofA to help us over and over with no relief. And just last week received our first collection call from Chase. Our auction date has been postponed 3 times and now is currently set for Feb. 8.

We are struggling with the fact that before last year our credit scores were 800! We charged about $5000 in home repairs when we first moved in, but have only used credit cards in emergency situations since then. We have just been playing “by the book” and it seems to be our downfall. It seems that the lying cheaters are the ones who are prospering and the honest hardworking people are being dragged through the mud. Anyway, the mortgage is the only thing that is not current. Our loan is set to adjust in July anyway, so we know that staying in the house is not going to happen, but at this point the work is still so hit and miss, we are not sure how we will even pay rent. We had a consultation with a bankruptcy attorney and were pretty disappointed. He was vague and very unsympathetic and he was not the attorney that we requested to see.

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We know we signed a contract. We do believe that we were mislead by the mortgage broker, but now we just want to be done. We have worked and worked and have nothing to show for it. Our loan was an interest only loan. We have just reached the point that we have to put a period and get on track. Believing that our lender was going to help us has been a huge mistake. We know that we can’t keep our house, but we don’t want to lose our credit cards (we have about 11K of debt), but I think at this point bankruptcy is the only way to have enough money to pay rent. The only reason I have not gone back to work is that child care would exceed my paycheck and I am still nursing an infant. I am going to start looking for something in the evenings though to help. Any advice you can offer is appreciated.


Dear Veronica,

I think it really comes down to if you want to wait for things to happen to you or you want to take control and be in charge of the things to happen.

I’m sorry to hear the first bankruptcy attorney you met with was a dud. Go get a second opinion for a local bankruptcy attorney. If you want to click here to find a local bankruptcy attorney, fine.

Imagine if you took all the mental energy and time and put it into moving forward and doing better instead of this constant worry about what is coming and looming over you. Life would get much better, faster.

The credit can be easily rebuilt after bankruptcy so that’s actually not really an issue.

My vote would be for you to find that second opinion on bankruptcy and then report back in with what you learned. Sound like a reasonable approach?


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.
Damon Day - Pro Debt Coach

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