I Invested in My Business Using My Personal Credit Cards. – Peggy

“Dear Steve,

Invested in my business using personal credit cards. Business no longer viable and have no income to continue paying down the credit card balances. Have been put on a hardship program…5yr, reduced payments, simple interest. Balances are reducing quicker but with no income, I cannot continue paying them. Applied for jobs, with no luck so far. Really stressing out over this situation and have considered bankruptcy.

Without a job, what other resources do I have to find help with paying the credit card companies other than filing bankruptcy? Certainly not something I want to do but without any income, I don’t know what else to do at this time.


Dear Peggy,

Unfortunately your situation is a classic one of why I often favor bankruptcy over long repayment plans. If you had gone bankrupt on these debts five years ago you would have had a fresh start on these debt by now and would have been already rebuilding your credit by now.

A repayment plan, debt management, or credit counseling program is only effective when the debt can be fully repaid using that approach. If it can’t be then you are still left with residual debt hanging over your head.

If you feel you have a personal reason to repay the debt there is no reason you can’t go bankrupt, obtain the legal protection and fresh start, and latter repay your debt.

Click here to find a local bankruptcy attorney you like and go talk to them. I think once you meet with them and discuss your situation you will find that the protections that bankruptcy offers you from your creditors will be very helpful to allowing you to finally move forward with your life.


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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