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I am Completely Freaking Out About My Debt. – Heather

“Dear Steve,

I was laid off in May and now our family has no way to catch up or settle with these people. We had not been able to pay for 8 months and so now they have sued. We have met with an attorney who advises us to file chapter 7.

We have no assets except for the items in our home. Our exemptions total $6000., but out household inventory will go over this amount.

The attorney states that the credit company rarely pursues selling these items as they will not make enough to clear half of the debt.Is this correct? I do not want to see my children out on the lawn crying as the few toys they have are sold at a garage sale. Any advise would be appreciated as I am completely freaking out over all this. please help!!!


Dear Heather,

This is one of those times that our emotional brain is screaming so loud in our heads that we can’t hear anything else except fear and doom.

Your creditors do not want your kids toys, not do they want to host a yard sale and sell you stuff off. Both options are just not worth their time.

It sounds to me that your attorney gave you some good and realistic advice here. Listen to the attorney.

For you, all of this is personal. For your creditors and their representatives you are nothing more than the next person to hit the wall. Nobody is judging you, but you. Nobody is feeling guilty, but you.

It’s not going to happen, but let’s say for a second that the kids toys were sold. So what? Worse things have happened to many, many people. This process is exhausting and depressing but nobody is on fire here and nobody is going to die from it.

READ  My Debt is Freaking Me Out. - Jen

Be thankful and grateful for what you do have, the love of your family and each other. And that, is more precious and priceless than anything else and no creditor can take that away from you.

But seriously, nobody wants your used crap.

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.


  • Steve,
    I had to write and tell you what I did with credit solutions and how I got all the money back that they had scammed from us. I email them and told them how I had researched their company and knew they had several lawsuits against them and that they had been barred from practicing in several states. I then sent an email to our state attorney general Troy King complaining about how they take advantage of people. Then I emailed credit solutions and gave them all of my information and they agreed to refund our money! I couldn’t believe it. So it can be done with enough determination. I want others to know so they can do it also and get their money back also!! Spread the word!!!

  • Being that we are not suppose to talk to our banks right now in lieu of the bankruptcy, I have emailed the HUD people to see if I can get some actual information from them. Again thanks for sound advice!! I will let you know what they say.
    You are the fountain of info.
    Big Hug!!

  • Steve,
    One more question for you. We are also in the middle of a loan modification with our bank under the obama plan we qualified. I have been told that buy filing this bankruptcy this will cancel that out. Do you know if that is true? I was also told that after we reaffirm the loan with them we can start over with the modification if time has not run out for doing so. Do you have any real advise on this situation as I trust what you tell me. Please advise.
    Thanks soo much!!

  • Steve,
    You are correct. Once I looked at all the paperwork tonight, the bills we have for the attorney and other outstanding bills we need to take care of will legally spend that money away. I spent the last 5 hours completing the paperwork and I made it through!! That was a huge step, and I am relieved to have it finished. Tomorrow we give it to the attorney, and then he will have the complete picture, and we can go from there. I will update you as soon as I know more!! You are the greatest!! Thanks so much for helping me. You do not know how much it really means to me!!! Big Hugs!!

  • Steve,
    We met with the attorney today. Very stressful. We qualify for the bankruptcy but because we have saved $3000.00 over the months in hopes of settling with these people now this extra cash is going to hurt us. It counts against our 6000.00 dollar exemptions. So that really scares me!! That only leaves 3000.00 left for personnel household goods. We will be way over that. So I am unsure what that means. I am back to the big garage sale theory. Steve what do you think?? I have to get all this paperwork back to the attorney tomorrow. He said he cant really answer questions without seeing it all laid out. I dont care if they take all the cash as we saved it for them anyway I just do not want to lose my home and household goods. Whats your opinion.

  • Thanks so much for answering my question. I feel better already. We will meet tomorrow with the attorney tomorrow and I will post here what happens so you can follow my progress. I am so glad I found your site today. I feel it was a small miracle!

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