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I’m in Terrible Debt From My Cancer Treatment. – Mitzi

“Dear Steve,

I am in horrible debt right now due to cancer treatment and how it has affected my job. I am self employed, and have fallen behind in my credit card payments as well as my mortgage and income tax. I am down to $100 in my bank account and have no credit.

I am not sure if I should declare bankruptcy or go to a credit counselor, as my credit is completely shot, but it seems as if you don’t like ANY of the credit counseling services out there. Are there any good places to go for debt counseling/management?

Mitzi”

The Answer

Dear Mitzi,

Based on what you’ve shared about your situation the most likely solution is going to be bankruptcy. However, recent tax debts and your mortgage can’t be discharged in a bankruptcy.

It sounds like your situation is the result of not having enough income. If that is the case then you need to consider if you don’t have any equity in your property if now is also the time to turn the house back over to the bank if you can rent for less money than is costs you for mortgage and running the house.

I can’t see how credit counseling would benefit you enough to free up much money and right now it’s cash flow killing your financial life.

If you want, you can click here to find a local bankruptcy attorney. Once you locate an attorney, go talk to them about your situation. The consultation is typically free and the advice is priceless.

If your medical expenses are ongoing right now you may want to hold off on bankruptcy and roll the remaining medical expenses into your bankruptcy latter.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

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About Steve Rhode

Steve Rhode
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.
  • Wayne

    Mitzi, my wife and I had a cancer scare a few years ago and she lost her job about the same time. We tried going through a debt settlement company but we found things just got worse. We went from there to a Chapter 13 and things still didn’t improve. A lot of creditors seemed to ignore all the rules. Finally after speaking with our attorney and giving it some very serious thought we went Chapter 7. I was embarassed and didn’t want to do any of it. But, it wound up being the best thing we ever did. In Texas, we were able to give up our mortgage through the bankruptcy..I beleive it was called a voluntary foreclosure. Anyway, it doesn,t show as a foreclosure on our credit report because it was included in the bankruptcy. Also, because of how the law works in Texas we were able to spend about three months in our home (our attorney advised us to save up the house payments so we could move)to build up cash to move. Long story short, it has been about 7 or 8 years and we haven’t had any “earth shattering” experiences because of the chapter 7. We have been able to get a new home with “grade A” paper, a new car, etc.. Don’t get me wrong,, we are very careful about what we do. The car was in response to our older car “giving up the ghost” on us. To date we have never applied/accepted any type of credit card! Good luck with your medical and financial situation.

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