I Might Have to Sell My House to Face Bankruptcy. – Rosemarie

“Dear Steve,

I have been out of work for over 18 months. I own apx 46,000 to credit card companies. I am still collecting unemployment but not sure when it will run out. I own a house with equity in it but cannot get a refinance or home equity loan because I am not working. My debt is building and I can no longer pay even the min, payments I was told by a lawyer that if I file for BK they will make me sell my house. I have to try a debt reduction company. My current credit score is around 740 and I am current on all of my bills including the credit cards.

Can you suggest a legitimate company that does debt reduction. I understand how the programs work and I know that my credit score will take a huge hit but I don’t see any other way out. Can you suggest something?


Dear Rosemarie,

To be honest, you will be eager bait for most debt reduction companies that will try to sell you some B.S. magic debt reduction program because they will recognize you are scared and have set certain limits on what you want to do, the house. They will promise you they can get you out of debt without selling your home but they will be lying to you.

Unless you find a job and replace your lost income, no debt program is going to work for you since your income will expire before the debt does.

Rosemarie, it sounds like you’ve got a valuable asset there, your home, and before this all comes tumbling down and you potentially lose the home you need to seriously consider selling it, take the equity, resolve your debts, and start over.

If you don’t take action the creditors will sue you for your delinquent debts and attempt to place liens against your home. Don’t let this situation roll over you, get in front of this, and sell.

See also  I've Been Unemployed and Now Can't Afford My Minimum Payments. - Marco

Please update me on your progress by Damon Day - Pro Debt Coach

19 thoughts on “I Might Have to Sell My House to Face Bankruptcy. – Rosemarie”

  1. My ex husband died in May 2012 and I am on the deed to his house in Washington, DC. I am selling the house and found I have 50% interest because of his son that has 50% interest. I just found out that there is a lien on the house for $33k which is an account of the son. I need to know that when we go to settlement, will I have to be responsible for helping pay the son’s debt or will he be responsible for it all by himself from the amount he will receive at settlement?

  2. The cash in hand is a problem and even if you invested it in a new property and later went bankrupt then the transaction could be reversed to extract the cash.

    If you decide to settle the debt with the cash on hand that is a possibility but you can save yourself about $5,000 in fees to settle if you contact Damon Day and let him guide you down this narrow path.

  3. Hi Steve, I sold my house, or at least it is in legal review…now more questions…I have 2 choices I am trying to get an inexpensive 55+ coop, I can pay for it cash but I don’t know if I’ll pass their credit limits. I did get a job but I only make 15.00 an hour and with bonus and incentives may get 38K a year, not really enough to live on. If I can get it, should I purchase the coop and use the balance of money from the sale to pay off the debt or should I just invest the money and rent somewhere and hope to get a better paying job? I also received a call fro Debt Mediation Network who says they work with Legal Helpers, they say I can settle my 45k for 26,100…and that includes their fee. I would use the proceeds from the house to pay it. What is my best options now? Waiting patiently for your reply….


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