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I Went to Law School and Now I’m Broke. – Jasper

“Dear Steve,

Well, I have two credit cards that I received in college and I was very responsible to make sure to pay them off each month. When I went to law school, I was not allowed to work for the first year, and my parents provided financial support until the economy began to worsen. I was not able to find part-time work for the rest of the year and then I ended up having to put items on my credit cards. I was more than able to pay more than the minimum monthly payment until I just graduated and because of the economy, I have not been able to find work.

I have two cards, I am current on my card with the higher interest rate (First Financial Bank) but I am 30-days past due on my Chase card. I have $7,000 on FirstFinancialBank and $5,000 on Chase. I was wondering if I should consider credit counseling at this point? If I should, what companies should I consider? My money is running out ($600 dollars left) and I am not sure when I will be able to find employment. Thank you. My two monthly minimum payments total $300 per month.


Dear Jasper,

Entering into any payment plan at this point would be not wise. If you can’t find regular income you need to look at bankruptcy to discharge the unmanageable debt. Otherwise you’ll just spend down your $6K and still be in debt, but just flat broke.

  1. Meet with a bankruptcy attorney to get the facts about bankruptcy.
  2. Draw a line in the sand and say if you don’t have a job by that date you’ll file bankruptcy.
  3. Follow your plan.

You can click here to find 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.

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.


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.

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About the author

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.

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