My Mother Was In An Accident And Lost Her Job And Can’t Pay – Paula

“Dear Steve,

My mother was in an accident and lost her job, we lost our tenant in our house for about 6 months in which bills got backed up, credit cards and loans were used to pay for the bills since my mom’s income was gone.

She got a new job but does not make much, my father is the only one working. We own our own home, but we have a lot of bills and credit cards and haven’t been able to make any payments. We are trying to get our mortgage modified, but Wells Fargo put us on a monthly payment plan, then in March they decide if we get one or not. We cant lose our house. Now we are being summoned by Citibank to pay back what we owe. We have NO money to do this we barely make our mortgage and we have TONS of bills and no one is hiring in this economy its so hard!

How can I resolve this situation? My parents will pay in time, we just need to get the mortgage modified, then we should be ok.


Dear Paula,

While you don’t want to do one thing or another and you feel you are being treated unfair, remember this, whenever you fail to make the payments as agreed, for any reason, you give up your power and it all rests with the creditors at that point.

The only tool you have to force the creditors to do anything at all, is bankruptcy. It is the only debt solution backed by the power of law and enforceable by the courts.

Citibank can sue you for failure to pay the debt, Wells Fargo can foreclose and evict you and the rest of your creditors can chase you with harassment or in court.

While we live in America, the land of hope and optimism, it is also the land where good people with bad debt are frequently abused and mistreated by creditors without much restriction.

I would suggest that you need to go and have a serious conversation with a bankruptcy lawyer to discuss a plan that would allow you to keep your house and shed the rest of the bills you can no longer afford. Click here to file bankruptcy.

It might feel like a dramatic and drastic course of action, one that you would never have considered, but then again, you did not plan to suffer from job losses and the like.

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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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