Is it True That Most People That Go Into Bankruptcy Have More Debt Than I Do? – Cameron


“Dear Steve,

My income is from social security disability and a part-time job. My disability involves major depression and anxiety, and has been a life-long struggle. I am receiving treatment, which is why I am able to work part-time. I owe about $12,000 unsecured debt and $90,000 secured ( first and second mortgages and a personal loan with my car used as collateral.

I have two of those payday loans which I have to pay off and then renew them each month, which costs around $100 per month for the interest. I can’t pay all the bills for this debt. I’ve struggled for many months and just can’t do it anymore.

My income is enough to live on but not much more. I see no way out. I’ve sometimes considered ending my life because I can’t deal with this stress anymore. My understanding is that most people who go into bankruptcy owe much more than I do.

What do I do? Is chapter 7 reasonable considering the amount of my debt? I’m terrified that I’ll lose my house, and it’s the only asset I have. Is there a way out of this?

I don’t have money to pay a bankruptcy attorney. I’ve called several, and they want payment up front. They will not consider a payment plan. Should I file bankruptcy? Is there any resource that provides a list of bankruptcy attorneys who will take payment in three or four installments? Please help. I’m really lost.


Dear Cameron,

The amount of debt really isn’t the deciding factor. Determining if bankruptcy is the appropriate answer in your situation is.

From what you’ve said it sounds like bankruptcy is a logical approach to your situation, and worth pursuing.

Your money troubles are only adding to your emotional state and not in a good way. Studies show that people with money troubles suffer from clinical depression and in your case, you already brought that to the party.

See also  How Do I Pay For Bankruptcy? - Justin

If you’ve called three bankruptcy attorneys and they won’t take installment payments for bankruptcy, call ten. I know there are bankruptcy lawyers out there that will accept installments because a sister of an old friend of mine just went bankrupt in Arizona and her attorney took installments.


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.

Steve Rhode

1 thought on “Is it True That Most People That Go Into Bankruptcy Have More Debt Than I Do? – Cameron”

  1. I filed once and paid the attorney a little each month til it was paid. He then started the case after he had all my info. If you contact creditors and tell them you’re going through bankruptcy, it’s amazing how some will want to settle, even while you’re going thru it and about to sign all the papers. I would think that if you stopped paying your debts and put that money to a lawyer, then you could afford it.
    The other thing is those damn payday loans are obscene what they charge in interest. They would make an old-time loan shark blush. There really needs to be some regulation over those business’s since they charge around 700% interest annually if not more.
    Good luck with your situation. There are ways to save money on groceries too, check out:
    They have deeply discounted groceries you can order and pick up at a local church if there’s one in your area.


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