I Had a Baby, Lost My Job, and Can’t Pay My Credit Cards. – Amanda

“Dear Steve,

In October 2008 I lost my job. I have 2 credit cards through Capital One and could not afford to make any type of payments on them bacause I had to pay for food and housing and a baby. I am single so no support from a spouse either to at least pay a little towards card.

I have received my phone calls and I have informed them I was unable to make any type of payment as I do not have any type of income. I have now receieved a letter from a Lawyers office and they are telling me I must pay account in full which both together is only 3,000 dollars which isn’t near as much as some peoples debt I canunderstand. I however have no way to pay at all.

They informed me if I do not pay that legal action will be taken and I will be sued.

I called the office and told them what are my options that I have no income at this time and the man I spoke with told me it didn’t matter if I did not pay, Capital One will sue me for the monies owed and that was it.

What can I do? I own nothing, no home, car, no pensions, 401k, I have nothing to my name at all.
What can I do should I just file bankruptcy and be ruined which my credit already is, so what is the difference, I know there is money to pay for bankruptcy also, do you have any suggestions.
I am actively searching for a job , currently my parents have been helping me, but they are barely helping thierselves so I can’t ask them to pay my bad debt and they are my only famly.

Thank you,


Dear Amanda,

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

There is a huge difference between owing a debt and logic.

Logically you have no way to pay this debt at this time. But Capital One had dumped you in their massive collection hopper of people that owe them money. They are not going to treat you as an individual, but grind you along with everyone else in the hopper.

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For them, that process will involve suing you. While you don’t have anything now, they are betting that you will in the future so they are going to stake their claim in you now for a future payoff.

No matter why or how you got in this situation, the facts now are that you are barely making it, you are actively looking for a job and you have no family financial support network. It is what it is.

At this point the only way to legally end this debt and claim against you would be to file bankruptcy. It is not a judgment about if it is right or wrong, but like the debt, it just is what it is. Going bankrupt and ending this debt might just be the most responsible thing you can do right now.

I would suggest that you contact a local bankruptcy attorney and call to schedule a free bankruptcy consultation appointment to go in and discuss the situation.

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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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