Is There Any Hope For Me for a Life After Debt? – Tammy

“Dear Steve,

I short sold my house last year..hours at work got cut in july…moved into an apartment … i’ve already retained an atty…to file bankruptcy…owe her fee $1700(which i can’t afford) before i can file in Dec 2010…i filed 8 years ago in december and can’t do it again until then…sued by creditor and lost and now wages to be garnished.(lost job last week to boot! so atleast there is nothing for them to garnish at this time…)..unemployment sucks…got some leads on new employment, but i can’t take it anymore…$40000 in debt…got a vehicle i can’t afford, we have been making the payments but would rather turn it in to the bank… i’m seriously depressed and finding that i don’t care anymore..i’m tired of “not having” and working so hard for “that”…i am married, two kids, 6 and 4 and feel i’m out of options…daycare is a must…cable, cell phones, electric, rent, 2 car notes, daycare, food, gas…we have no entertainment fund whatsoever, (really no biggie)…we enjoy being at home with the kids…my point is…i’m stretched tooooo thin…..

i’m avoiding all the creditors…changed numbers…etc…hiding isn’t the answer i know, but i’m at my wits end…

oh, did i mention the fact that i purposefully set my exemptions on my pay for the last year at 10…now i’m going to owe the IRS…

life is bad….

is there any hope?


Dear Tammy,

Certainly it is overwhelming at the moment. You ask if there is hope and I say ABSOLUTELY!

But relief and progress are not going to be measured in big increments as the result of a wave of a wand. This is going to get all better in an instant. It will take time but there will be some small victories on the way and the light at the end of the tunnel will get brighter and brighter.

Let’s break this down into what the reality is today and what you can do right now. Your unemployment benefits can’t be attached or garnished in a judgment so you are safe from that at the moment. Creditors can threaten and sue all they want right now and that’s not going to change that fact. Creditors have a legal right to sue for collections if they want. If they do, they do. It’s emotionally unfortunate but not fatal in any way. When you do file bankruptcy all those suits and judgments will die anyway.

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Right now you need to be able to live on your unemployment benefits. If you can’t afford the car on the benefits and you don’t need the car to find a new job then handing it back may be a good option. Once you hand the car back they will sell it at auction and latter come after you for a big bill and you’ll just have to include that in your bankruptcy.

Ask your bankruptcy lawyer if you can direct creditors to contact her once you pay her the fee. That might also buy you a little time and piece of mind.

As far as the taxes go, get your deductions straight for this year and once we know what you will owe the IRS a payment plan can be reached.

Without the car payment you might actually be able to get by for now on the unemployment payments and be able to save a little bit of money. That would be a big step forward.

See, there is hope and every little step you take to address the situation, rather than hide from it is a step in the right direction. Keep me posted.


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

Steve Rhode
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