Is Bankruptcy or a Debt Repayment Program the Best Option for Us? – Janet

“Dear Steve,

Moved to Ohio 3 months ago, from CT where we were delinquent on our upside home mortgage and managed to renegotiate the second mortgage to 20% of the total, then were able to sell our house and relocate.

We were able to find a private individual to finance our new house for us as our credit was shot….we have about 130K of cc debt and had met with a bankruptcy attorney in a different state but never filed.

We are trying to get back on our feet but our overwhelming credit card debt is weighing us down. When we thought about filing bankruptcy we were advised that a chapter 7 would not work for us and in a 13 we would be paying back all of our debt but the accruing interest would stop.

We have tried to renogitate our debt ourselves but credit card companies have not been willing to talk to us since we are current and we are nervous about defaulting on them then incurring huge fees and still not be able to renegotiate…what are your thoughts ? We are able to pay our mortgage and our car payments with about 60% of of our income….leaving the remaining 40% for living expenses and debt….

Is bankruptcy or a debt re-payment program the best option for us?


Dear Janet,

Well let’s look at the overall solutions. Use my free How to Get Out of Debt Calculator to review your options.

From that we can make some better choices about which approach is right for you based on your goals and abilities.

Take a look at the calculator and then post an update for me in the comments below and tell me which solution looks most attractive to you. We can then talk about the pluses and minuses for each.

Right now you are in the toughest spot, current but feeling hopeless. There is a way out. But before I can point you in the right direction we need to evaluate your options.

See also  I'm in the Process of a Divorce. He is Supposed to Pay My Credit Card Bill. - Becca

Please post your responses and follow-up messages to me on this in the comments section below.


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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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