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We’ve Worked Hard to Repay Our Debt But Now In a Tough Spot With Capital One. – Kerri

“Dear Steve,

We had some life changing circumstances in 2004… it led us to stop paying on 11 credit cards. We went through a debt consolidation company and they basically took our $3800 and did nothing… In the past 2 years we have settled on 7 of these accounts. We got into an amazing church a few years ago and it’s changed our lives and how we look at our finances. We are slowly trying to rebuild and do what is righteous- but settling 7 accounts in 2 years has taken every bit of disposable income we have…

The 4 accounts left are with Capital One. Two back in the day were $5000 each- now are over $10,000. We received a notice that a civil suit has been filed against us on 1 of the remaining smaller balances ($2500 now $5000)… and I’m sure the other is in the works. I called Capital One about the 2 large accounts and they were charged off in 2008 and our SOL is up in September so I’m sure they will be suing us shortly… With this multitude of urgent debt facing us… should we file bankruptcy? We unfortunately filed bankruptcy in 2000… so not what we want to do… We are in such a different place in our lives as far as credit goes and we don’t ever use it and are paying off the few we have left agressively… What should we do??


Dear Kerri,

I think the best answer to this problem is not found by looking backwards, but by looking forward. What is the goal you want to accomplish on this in the next 3 to 6 months?

Do you feel you have a greater responsibility to fix the past or to fix the future?

Before we come up with a direction to head it’s important to work through the issues. No matter what you have accomplished in eliminating your debt up to today, it does not matter if that path will leave you in harms way because of the remaining debt.

See also  Mohamad Wants to Pay His Creditors If Only They'd Let Him

If you have not done so yet I would ask you to read The Honest and Unvarnished Truth About How to Get Out of Debt and then come back and post the answers to my questions in the comments section below.


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.


  • Just remember that you’ve explored your options and you’ve made the most logical decision that is most appropriate for you and your situation.

    You should by all means hold your head high, use the experience as a learning opportunity and take what you observe through this process and share it with others.

    Big hug.


    Sent from my iPad

  • a few of the cards we aren’t able to include bc we used them in December for Christmas and it hasn’t been 90 days… that’s a good idea about still paying them and gives me a little peace…
    well I feel like we have to file – it’s really not an option – it’s almost like a forced bankruptcy because the 2 cards from Capital one are each of $10,000 (original balance was $5000)… we don’t have $20,000 if they would sue us and we don’t have $10,000 to try to settle with them… so I feel like it really is our only choice… So I guess we need to put on our armor and face the situation. Thank you for all your advice… ~Kerri

  • You have to include all the cards but just because you include them does not mean you can’t still pay the,. That’s what I tried to do in my bankruptcy.

    You don’t have to file but which path is the most logical for you, the one you are on today or the one you could be on post-bankruptcy. Which is safer for you and your family?

    Don’t let anyone talk you into a decision you are not committed to and ready to embrace. At the same time don’t make a decision simply based on how you think you may feel.


  • Hello Mr. Rhode, It’s been awhile since I have written and wondering how you feel about the attorney advising us to include all of our cards? I am really, really struggling with this decision and have no idea what we should do… I feel like if we do include all our cards that we are taking a step backwards spiritually… We pay on these cards now and plan to pay them off the middle of next year… on the flip side I do see that if any large expense popped up- we could easily be back in the position we were 7 years ago and that does scare me… any opionion on this? We are to submit all our info to him by Friday…
    Thanks, Kerri

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