I Don’t Want to File Bankruptcy. I Think Bankruptcy is the Last Thing to Consider. – Lester

“Dear Steve,

I have been jobless for over 6 months now and have used up my savings to continually pay my credit card debts. My wife is the only one working right now. Since we have used up our savings we can no longer keep up to date with our monthly obligations from mortgage, credit cards and student loans, not to mention our household needs such as groceries and utilities.

I think that debt relief is one option to get us out of debt before doing the last recourse of filing bankruptcy. Since there are many debt relief agencies out there, we don’t want to fall into the hands of the scammers, which will only worsen our situation. What legitimate and reputable debt relief agencies can you recommend that should be good for our situation? I live in Illinois.

Thanks for your help and advice.


Dear Lester,

Well you’ve learned a hard lesson about what happens when you spend down savings to deal with debt. Now that you are out of savings, the debt problem is still there. It’s just been pushed into the future.

The most alarming thing you said is that bankruptcy should be the last option. The reality is that in many situation bankruptcy should be the first option to consider.

Many discount bankruptcy incorrectly as a last option but it is the only debt relief option that gives you any legal power over your creditors or the ability to discharge your debt quickly and start over.

Discounting bankruptcy without knowing the facts puts you at a disadvantage based on assumptions and fear. Let’s deal with reality here and make the best decision you can based on facts and information.

Let’s start with the basics.

I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

See also  My Bank Won't Work With Me So I Can Pay My Debt

Then use the free How to Get Out of Debt Calculator to review your options.

After that, come back here and comment about what seems to make the most sense and let’s discuss what you took away from all of that information.


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.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

Follow Me
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.
Steve Rhode
Follow Me

Leave a Comment