Ask The Get Out of Debt Experts Bankruptcy Related Tax Related

I Feel Like Putting My Head in the Sand. What Kind of Trouble Am I In? – Steven

“Dear Steve,

I am a general contractor,about 7-10 years back, was doing well, had 150 k in cash, about 100k in investments ( ira,stocks mutual,annuit), couple cars, work van, motorcyle(veichiles owened out right) , divorced, but doing well & no debt. Got really busy with work, bought a house, started using cc for business was always paying, , trying to grow, decided to dormer house, borrowed 90k from home equity, foundation was bad, now had to build new home, (complicated story), In the middle, BA took away H.E line of credit after I tore house down, sat Idle with a lot of fighting now my business got slow, lost some money in investments, house value went down, now work has been dead , house is not built, some bad positioning, now around 300k in debt CC, LIC, Home Equity LIC, Mortage & around additional 75k IRS, havent paid in 5-6 yrs. I have no income coming in, tried a last ditch effort to invest in a buisness venture in Mexico, with 90k, not goin g so good. Cant afford a lawyer. I cant believe I was on my way to a decent retire ment after 25 yrs in business & now I am broke & have to start over…..

What do I do….I never felt so heavy, I feel like putting my head in the sand. Just dont know where to begin. What kind of trouble am i in besides Big. Thanks in advance


Dear Steven,

Well you’ve had a horrible string of bad luck, that’s for sure. While the situation feels dire the reality is it’s better that you may assume for getting a new life of less stress.

Your situation sounds so beyond your ability to dig out that the most logical approach at this point may just be a legal fresh start with bankruptcy. Bankruptcy would give you a second change and put all the unfortunate debts behind you.

The big benefit of doing that as quickly as possible is the sooner you do it the sooner you can recover. If you were to file bankruptcy soon you could have this mess behind you in about three months. Once it is behind you then you only need to focus on doing better moving forward and no longer having to keep checking over your shoulder to see who is coming after you.

The second important issue is going to be dealing with the IRS. We have expert help right here on the site for tax issues. You can ask Jim, our resident tax expert for free help.

Jim is going to give you some good advice and help get you pointed in the right direction on those issues.

By dealing with just two issues you can start putting this mess in your rearview mirror.

Please post your responses and follow-up messages to me on this 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.

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