We Went to a Bankruptcy Attorney And Was Told Bankruptcy Was Not a Good Thing. – Barcia


“Dear Steve,

Do to lower salary can only pay mortgage or credit cards of 100k. Went to bankrupcty attorney and he said we do not qualify for chap7 and chap 13 was not a good thing. Told us to stop paying credit cards and only mortgage. We have done that but are afraid credit cards will come and sue us. Unable to sell home owe 664k valued at 529k. In all honesty when we pay our mortgage and taxes and daily expenses have no money for anything else. Mortgage takes about 60% of income. We want to do the right thing.

Should we foreclose on home and pay credit cards? Please advise.


Dear Barcia,

My gut reaction after reading this was, “Huh?”

It sounds like your house is not affordable for your income. The most logical course of action here is to let the house get foreclosed on and then wrap the mortgage deficiency and credit card debt into one bankruptcy.

Doing the right thing is always an interesting statement. There is doing the right thing for your creditors, doing the right thing to repair the past, doing the right thing for yourself, and doing the right thing for the future. Doing the right thing is a wide open palate of possibilities.

In your current situation I think that doing the right thing means to create a safer environment for yourself. This would mean that you need to get your obligations adjusted so you can afford to live and have money to save. My bet is that you have no savings account or emergency fund to fall back on and that’s just not safe.

Your diagnosis sounds like a situation faced back when I was in medicine. Sometimes a patient would present with a diagnosis from some other medical practice. You’d look at the patient and think, not say, WTF! The best course of action for you is to make an appointment with another bankruptcy attorney and get a second opinion. Let’s see if the two professionals agree of the financial diagnosis and treatment for you.

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If you stopped paying your credit cards, collection pressure will increase and they can sue you. Stopping payment is part of a process, not a solution by itself.


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

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