I’ve Thought About Bankruptcy But it Scares Me. – Angela

“Dear Damon,

My husband and I started our relationship in debt. He had a child and was fighting for custody. We purchased a house and got married and have never truly been out of debt since.

We have had waves of good and bad times, as most people do. I have always beleived that things will work out, and now I am not so sure. We have our no equity in our house and it is falling apart.
We cannot afford to sell it because we will lose money. We like it and can do the maintanance on it, but do not have the funds to do what needs done.

We have a vehicle with $4000 due on the loan and it is falling apart. We have a motorcycle that we cannot afford and are trying to sell it. I make ok money as a teacher, but my husband makes 1/2 as much as me. I have been caught up in the cash advance loans and currently have three loans out, owing almost $3000 to them.

I am two, going on three, months behind on my house payment and at least one month late on everythi ng else. I have $50,000 in student loans that I have deferred for over a year. I have a few credit cards, paying almost $700 a month, but owe total less than $10,000. We have a personal loan that costs us $345 per month with a total of $20,000. I have borrowed from family and owe them quite a bit.

HELP! I have thought about bankruptcy but it scares me. The stigma involved in it and not ever being able to help my kids out in the future petrifies me. Please give me advice.


Hello Angela,

One of the things that jumps out at me is that you are paying 700 a month on 10,000 in credit cards. That is unusually high. Also clearly you do not have enough money coming in to meet your obligations as evidenced by how far behind you are on your home, so now is the time to get drastic and prioritize what is and is not important.

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You need to decide if this is a home that you can afford and want to stay in given the money you are going to need to put into it.

Now is the time to make some tough choices. You mentioned you are afraid of bankruptcy and you feel that you will not be able to help your kids out in the future. I would argue that perhaps if you don’t offload these burdens now by filing bankruptcy, it is more likely that you will not be able to help your kids out in the future.

Bankruptcy can give you a fresh start, get you out from under the credit card debt, payday loans and perhaps even the house if you decide it is to much of a burden.

I understand many people fear the prospect of filing bankruptcy, but much of that fear has been put out there by the banks and the alternative debt relief people and it is not based on fact.

I think a private, one on one phone consultation with me would really help you to understand your options and put some things in perspective. At this point I don’t know if bankruptcy is the best course of action, but I know at minimum you should meet with a bankruptcy attorney to learn how you would be effected by it if you filed. I suspect you will find it is not as scary as you imagine it to be.

If you would like to schedule a private consultation I can get a much better understanding of your financial circumstances and goals. Then I can review all of your potential options including the possibility of filing for bankruptcy. Together we can then put together a plan to turn this around and get your family back on solid financial ground.

Damon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com

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