I’ve Depleted My Savings, Creditors Are Calling And I Feel Like a Criminal. – Avria

“Dear Steve,

Early in 2008, I had a sudden turn of events. I had to quit my job due to health problems and lost half of my household income when my ex and I split up.

I had just bought a new car and signed on to what would have been smart loans to transition into a more comfortable state in my, but when 4 to 5 months had passed and I still couldn’t find a job, my savings were depleted and I was close to losing my apartment and my automobile! My financial situation spun out of control!

Suddenly accounts that have been established for years were closed and some of my newer obligations got charged off, almost immediately!

Finally, I was able to secure a job,, but I’ve only been able to salvage a few of my major accounts. Now I have law offices and creditors calling me non-stop; threatening to sue and treating me feel like a criminal! There is still about $10,000 worth of debt obligations unaccounted for. I took a cash job and am paying out almost 90% of my monthly income, but it still is not enough to get out of this mess.

How do I confront my financial crisis at this point? What are my options and what would be the least damaging route of these options?


Dear Avria,

Wow! You’ve certainly had a run of stressful events in your life. All you’d need to do is add a death of a loved on to the mix and you’d have a clean sweep.

I was sad to read that you had depleted your savings account without prioritizing your debts. When faced with no income, make sure you pay for the basics first, before you send a single payment to any unsecured creditor, like a credit card company.

Damaging options, hum, interesting. I am much less concerned about your credit report and credit score right now and more concerned about minimizing damage to your life so you have an opportunity to lead a life worth living after all you’ve been through.

I’m going to probably be criticized for this but I think you should strongly consider bankruptcy. Bankruptcy will end all the collection calls and grief you’ve got going on right now. You can then focus on building a stable life to get back on your feet, emotionally and financially, and then you can repay your creditors latter, after bankruptcy, if you want to.

All of the stress from the money troubles is only going to further damage your health and increase your stress level. I think the most responsible thing for you to do right now is to take charge and address your debt situation head on.

Your credit can be rebuilt afterwards, that’s pretty easy to do. But what can’t be built is a life worth living as long as the consequences from these events is weighing you down.

You are not a victim here, nor are you a criminal. You were just the recipient of bad string of changes and events. Those events all lead to where you are today. That’s it. Don’t read anything more in to it.

If you think this advice is right for you, you can click here for a free bankruptcy consultation with a local bankruptcy attorney.


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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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