Ranjit

“Dear Steve,

I’m in credit card debt. I owe around $40,000. I heard you can get grants from the government that you don’t have to pay back. I’m unemployed rite now and getting unemployment. Please tell me what is the best way to get out of debt without paying all that money. Should I file banckruptcy or do you know any govenment program that might help me. Please help me sir, Thank you for your help.

Ranjit”

The Answer

Dear Ranjit,

Please also see “Government Handing Out Secret Bailout Money to Pay Off Credit Card Debts” for additional information.

People who sell government grant information often mention that government grants are available to get out of debt. It makes me crazy.

If you are unemployed and have no income coming in you have two basic options.

You Can Wait

You could do nothing now about your debts and just let the collection calls and letters come your way and deal with it. If the pressure from the debt collectors gets to be too much then you should read this article, “How to Hide From Debt Collection, the Debt Collector, and Creditors“. When you get a new job and start to earn money you could begin to repay your debts at that time.

You Could Go Bankrupt Now

It is a legal option for you to go bankrupt now and wipe out your debt. Click here for bankruptcy information. You can often meet with a local bankruptcy attorney for free to discuss your situation.

I certainly understand the conflict between wanting to pay your debts and having no income to do that with. The forces are diametrically opposed and both one cannot be achieved without the other.

Bankruptcy is not an easy option. While it will help you to shed debts you can’t pay you will find yourself starting from scratch all over again. In a hopeless or impossible financial situation bankruptcy is often the best last resort. I wish that there were laws and allowances that gave consumers the same legal authority as is afforded under bankruptcy, but there isn’t.

Steve

The Answer