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We Tried to Work With CitiMortgage for Two Years But They Refused to Help. – Cheryl

“Dear Steve,

We tried to work with CitiMortgage for two years and they refused to help – eventhough at the time we were current and had good credit. We just wanted to refinance to a lower fixed rate. Finally we got behind 4 months due to 70% less income coming in and they filed foreclosure proceedings. This is forcing us to go bankrupt due to the fact we will have a lien on us for the difference of the sale and they raised all 3 of our credit cards to over 29.99%. We also asked them to lower the payment/interest and they refused. We contacted a lawyer and will be proceeding at the end of the month on a bankruptcy.

If we don’t put one of our credit cards (Bank of America), that is also where we have our two checking accounts (personal and business) in the bankruptcy, will this keep them from touching our checking accounts? Is our checking account safe if we have no loans or automatic withdrawals associated with it and we don’t put the cc in the bankruptcy? Can they freeze any of the money in the accounts for any reason other than if we have an account associated with that bank in the bankruptcy? When we file will this cc company close our account (even if it is not included in the bankruptcy) and then try and go after our checking account for the balance owed?


Dear Cheryl,

I’m so sorry that you had to live through this. Unfortunately it is a story I hear often. When you meet with the bankruptcy attorney all of these questions will be answered for you. in fact, even if you are planning to file latter, meeting with a bankruptcy attorney now would be an excellent idea.

The bankruptcy process requires a lot of disclosure and if the business accounts are disclosed really depends on the corporate structure of the business. Again, these are issues the bankruptcy attorney will cover with you as part of their service to you.

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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.

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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