My Husband is Not Happy About Possibly Losing The Land. – Linda

“Dear Steve,

I am trying to figure out what is the best option for me considering all the pros and cons. I have a 30K credit card debt in total they are 4 credit cards one with Capital One and the others with Chase. These cards are only in my name.

A situation I have never been in before and I can not believe I let my self get in. I’ve trying to establish a small service business while working part time from home and being a mom and wife. We have lost over 100k of our home equity cash we put down and the have two mortgages in total of 180K while the property is only worth 130K.

We don’t have a car payment and the car is under my husbands name. The only other property my name is on, is on a piece of land paid, that county states is value at 10k (another loss there) My husband brings home around 43k to 46k net year to cover food, home insurance, mortgage, gas, taxes, etc. He has his own credit cards one with a balance of 10k too. Plus owes a personal loan of 10k.

Chase is suing my now. I am considering bankruptcy, but my husband is not happy about that. He’s concern of the long term effect on the credit and the possible loss of the land.

The funny thing about this is you should see my home, we don’t have any luxuries, no big flat screen tv, a 16 y/o bedroom set with no headboard for the bed, the kids(did I mention I have a 4 & 6 y/o) don’t have bedroom sets. I don’t go to the salon, I don’t go shopping. So you see very frugal and then I got my self in this huge debt for trying to pay every one on time and now I can’t pay the credit cards on time. Of course I’ve been trying to get a full time job with larger pay and that also is hard to get.

Capital one already sent their account to a third party for collection and they are really nasty. Chase is still calling and said to send in some money and that will stop the lawsuit.

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So I am confused as I am not sure what to do. I do want to pay. I accept responsibility but I am not able to comply with the funds. I have met with lawyers, spoken with settlement counselors and all want to help and say the right things you want to hear to sooth you in this stressful situation.

I feel embarrassed, unsuccessful as I will be 40 pretty soon and on top of that when we talk about this my husband makes me feel like I am a 0 to the left when it comes to me contributing financially.

I want to believe I can’t get out of this mess. I just don’t see the best solution. So the question is:

What is best when in this situation:

Bankruptcy chapter 7
Credit Settlement
Credit consolidation


Dear Linda,

I understand your husband is not happy about the prospect of bankruptcy but I doubt he’d be happier investing a lot of money into a solution that would be less effective than bankruptcy.

Thank you for sharing information about your situation. It sounds like you are trying hard to make ends meet but its been a struggle. You are upside down on your home and the land is not worth a whole lot and would not be an asset in the economy the trustee would be excited about.

It seems like what you need most is not a fancy or expensive plan on how to avoid the situation, but a real solution that will allow you to get some relief from your debt and start over. That solution is probably bankruptcy.

You can click here to talk to a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

A bankruptcy would terminate the suits against you and let you instead stop scrambling trying to fix the past and give you a chance to make the future better. Part of that better future means saving money in an emergency fund and living within your means so you never have to get financially buried like you are now. Your kids deserve for you to take action, even if it is difficult, to give them a safer future.

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After you talk to the bankruptcy attorney, come back and post an update in the comments section. If you decide that bankruptcy is not the right fit for you we can talk about it.

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Damon Day - Pro Debt Coach

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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.
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