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I Have No Job, No House, No Car and No Way of Paying Back My Debt. – Diana

“Dear Steve,

Hi. I have about 9-10 credit cards and about $25,000-$30,000 in debt. I have no job, no house, no car and no way of paying it off. I can’t predict when I will be able to find a job. I just recently been late on my payments. I really don’t know what to do.

Would bankruptcy be the best option for me? What happens when I file for bankruptcy? What are the procedures? Please get back to me. Thank you!


Dear Diana,

Yes, bankruptcy is a legal tool to allow you to put an end to a financial situation which has no reasonable expectation of being able to resolve itself.

The process works like this.

  1. You find a local bankruptcy attorney you want to work with.
  2. Once you pay the attorney to represent you the process starts.
  3. You’ll fill out a bunch of information pages and/or give the bankruptcy office copies of your bills.
  4. Your case is filed with the court and your creditors are notified.
  5. No further collection activity is permitted.
  6. A meeting with the bankruptcy trustee will be scheduled.
  7. In a Chapter 7 bankruptcy you will receive a notice that your debt has been erased.

It is not a complicated process but in a time of stress and depression it is just a pain in the ass. The ease of the bankruptcy really hinges with the office you pick to do your bankruptcy with. Good communication with the office and confidence in the attorney will go a long way to making this a less painful process.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About the author

Steve Rhode

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.

1 Comment

  • Hi Diana,

    I am in the very same predicament as you are. I’m sure that Steve’s suggestions will work for me, too. Thank you Steve. Please update your progress with helpful tips along the way. I’ll be sure to check back and learn as I go on this path to clear my debt, too.

    Best Wishes,

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