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I Cared for My Mother But She Recently Passed Away. Now I’m Left With Terminal Debt. – Bill

“Dear Steve,

I searched for rating of Finacial Freedom Non-profit and your expose of their scam came up. Thank you you are a Saint!

I had to take a $18000 salary cut due to a company wide reorganization. In addition, my Mother was stricken with Dementia and Cancer and I took care of her especially after her Colostomy to go around the tumor. I had made a promise to her that I would not put her in a nursing home and although it cost me dearly, I kept my promise and paid her back only a smidgen compared to her unconditional Love for me.

She passed away recently and although she is in a better place, I am hemorrhaging with payday loans and unsecured debt. I also have one car that the engine blew ($2200 to fix) and has a $5500 car loan balance and a Mini-van used as security for a Citi-financial loan that the transmission went out ($1400 repair).

My wife and I have one car that is running ($5000 loan balance). I have to leave the home I am renting because I can no longer meet the rent of $1400 and we are looking to downsize. Are there any alternatives to working out a manageabl e arrangement to pay off pay day loans and what options do I have on a car that is a major loss but still has a $5500 loan on it.

Are there any alternatives to working out a manageable arrangement to pay off pay day loans and what options do I have on a car that is a major loss but still has a $5500 loan on it.

Thank you again,

Dear Bill,

First of all I admire the care and sacrifice you made for your mother. Sorry to hear of her passing.

I think we should take this in stages. It sounds like you really put your financial life way out on a limb to meet your commitments to her and at this stage, based on your current income those debts might just be too far out to save it reasonably.

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I’m assuming that you have few to little cash on hand or assets to sell to deal with the debt.

Before we start trying to be creative and tricky we should closely examine the possibility of bankruptcy. It sounds like you might qualify for a Chapter 7 bankruptcy and be able to discharge all of your debt in a few months and start over. It’s stupid easy to rebuild your credit afterwards and most importantly it is probably the only way you will be able to put yourself in a position to begin saving money again to protect you and your wife in case of a financial emergency.

So let me give you some homework, click her to find a local bankruptcy attorney and talk to them about what bankruptcy would mean for you in your situation. Then come back and update me in the comments below with what you find out and learn.

Remember, if you don’t like the bankruptcy attorney, find a second one.

What do you think, does that sound like a reasonable first step?


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.

1 Comment

  • Pathetic situation and you have to fight bravely to win this situation. One of my friend was attached with a reputed care home Hampshire  and he faced similar type of situation and won ultimately by taking expert view from a debt relief firm.

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