When I Was Younger I Made Some Silly Debt Mistakes. – Kristina


“Dear Steve,

To go bankrupt or not to go bankrupt when trying to get a loan for a new house asap is the question?

Well to start off I’m looking for answers, answers to questions I don’t even know how to begin if that makes sense?

I was a young stupid kid and decided to take everything for granted credit cards, not paying insurance that now collected on debt, cell phone charges for breaking contracts, and many many more things, not to mention i thought i was in heaven when i found out “”bill me later”” stuff.

So now its all adding up on me and collecting interest. I can’t afford it. The other day a credit card bill collector called me and was basically telling me they were taking me to court. I can’t afford much right now not even 25 dollars a week/month extra then what i got. I don’t have a job i’m on unemployment, trying to get ssi because of medical reasons and my house is falling into the ground.

My bf is looking into getting a VA loan because he’s a vetrain but he has not so great credit either. I guess my question is with bad credit and tryin to get a new home is it wise to cailm bankruptcy? We need this new home asap cause i really doubt my trailer is going to make it through another winter and not to mention its not healthy for my son. I also have a Student Loan not as bad as other people’s loan amounts but its 3 thousand something. I don’t know what else to do. I’ve tried reaserching as much as possible but i really need laymen terms. If this helps as far as laws or whatever goes I live in the state of Maine. Thanks for your help,


Dear Kristina,

That is a bit of a mess, isn’t it.

On the good news side a VA loan is a lot more forgiving of a low credit score. The big factor is to make sure that your BF has been current on his bills in the last year.

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His loan eligibility will not involve you. You could go bankrupt right now and it would not hurt his chances of getting the mortgage.

Since you are on unemployment and hopefully benefits, even if you were sued and lost there is little to no money for the creditors to garnish. Most states prohibit the garnishment of unemployment except under a few limited situations.

You may be eligible for free bankruptcy assistance through the American bankruptcy Institute pro-bono project. Click here for a list of places that might be able to help you for free.

I suggest that you consider going bankrupt to clear the old debt, if your student loan is a government backed loan, go into the Income Based Repayment program to get your payment reduced, and then focus on moving forward with your life.

While you admittedly made some silly mistakes in the past, hopefully you’ve learned from them and that will help you to avoid getting into trouble again.


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.

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