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I Have 43 Credit Cards. Can I Lose My House For Credit Card Debt? – Greg

“Dear Steve,

Can i lose my house for credit card debt. i’m 67 can’t work anymore. my house is worth 300k and i owe 162k from a reverse mortgage. i get $756 in s.s. and two rental units in house pays the house expenses. i’m single i got $1500.00 from the reverse and i gave my sister $110k the rest went to payoff a home equity loan, taxes and insurance on the house. i stopped paying the debt on june 30th. i’m getting threats for judgements. i’m dealing with 14 banks with whom i have 43 cards. my sister is off the deed. i don’t mind liens. should i sell. i owe over $300k in card debt. for years i’ve used their money and my savings to make payments i can’t do it anymore. my job for 24 years was home delivery of a newspaper 7 days a week i never missed 1 day. hope you can give some advice,

Thanks,

Greg”

 

Dear Greg,

Well, hum. Certainly managing 43 credit cards is nearly a full time job. This is obviously a situation that did not happen overnight and despite of your age and situation, we’ve got to deal with this now.

Why did you give your sister $110,000? I suspect your bought her off the house.

Ultimately the answer here is going to be be obvious not because of the underlying issues that lead you so deep in debt, but because this appears to be the end of the road for juggling this mess. It doesn’t seem to me that you have further resources to drain or tap to keep this hot mess afloat. I think the time has come to deal with this head on.

And there really is no other logical or reasonable solution other than for you to go and talk with a bankruptcy attorney and to carefully explore seeking protection under bankruptcy as a way to discharge your debt. Find a local bankruptcy attorney you like, make an appointment, and go in and talk to them face-to-face.

So let’s say you don’t do that and stick your head in the sand and hope that this only ends with lawsuits and liens. Why? There is no upside to doing that? Why allow liens to be placed against your house when this can be dealt with?

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 Steve Rhode

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.
  • Sunflowerangel7

    Dear Greg, I hope that you still have the home. Could you borrow some money from your sister to hire a bankruptcy attorney? Best of luck to you!

  • greg

    Dear Steve thanks for your reply. i started with the cards in 1990 and yes it took alot of my time. i checked on bankruptcy shortly after the new bankruptcy law went into effect, i owed $150k at the time. the lawyer wanted $6k and i would have to pay $3300.00 a month for 5 years to settle the debt. i did’nt have that kind of money. his advice was to sell the house then negociate with the credit card co’s. i gave that$110k to my sister because we thought we had a close on the house in oct. 2008 and her share would of been $125k. i’m getting letters threatning litagation. i’ll prepare my defense from a half hour meeting with a lawyer. i can’t afford alawyer to represent me. i just don’t want to lose the house. i can’t afford to be out of here. Thanks for your time. Greg

    • Sunflowerangel7

      Dear Greg, I hope that you still have the home. Could you borrow some money from your sister to hire a bankruptcy attorney? Best of luck to you!

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