Is There a Way to Get Out of Debt for Free? – Steve

“Dear Steve,

I was unemployed for 7 months in 2007 and moved to Texas for employment, The company shut down the project in Novemeber of 2007 then fired 35 people in January of 08. During this time My wife lived in New Jersey and never came to Houston and filed for divorce. I never thought that New Jersey would award her alimony in the amount of 3k a month when I was unemployed. I soon gained employment and bring home 3K a month after alimony and taxes. The problem is that while with my first company in Texas I had to buy a new car,had expenses that were never paid by the first company for mandatory travel and had major expenses left over from my 7 months of unemployment.

Now comes the even worst part. I met a very special woman after the divorce with 4 children. She understands my dilema however we are in risk of losing our home (rented) due to the inability to pay rent. My bills from being unemployed are in the range of 90K and haven’t been able to come close to catching up.

I have had thought the same as yours, suicidal, bankruptcy. I need some type of help, I’ve even looked into grants to help my fiance out for housing and starting up a business but it is very frustrating going through the government web site.

Are there ways to get out of debt for free? I mean all debt. Can the government help?

What ever you can do to help we would be forever grateful.


I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.

Dear Steve,

Though grants for start up do occur, I have found they are most generally for a very specific purpose and have very selective criteria to receive them. I am not saying don’t continue to research grants, but I am saying, do not count on finding one. But even a grant has a price tag of finding it and then following all the needed steps to get it. Similarly you should make contact with local churches, utility companies, etc to seek temporary assistance.

See also  Federal Grants for Debt Relief - It's a Scam. Here's Why.

You asked if the government can help and yes they can but not usually in the form of a grant. I find it interesting that you put suicide and bankruptcy so close together as I would say suicide is about the most negative thing I could think of. Bankruptcy on the other hand could be a very positive thing if you look at it as a new beginning… a new fresh start. But I do understand your overwhelming feeling of issues being out of control. And you would not be the first to feel this way. At the same time combating such feeling with positive actions such as attempts to rectify the situation are a very power positive force allowing you to work towards regaining control. One such action is looking into bankruptcy.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Bankruptcy will not cure alimony, child support, fines, etc but it could very well take care of that 90K and may even allow you to keep the car. My recommendation is to run (don’t walk) to a bankruptcy attorney in your locale. The worse that will happen is you will find out bankruptcy is not an option for you… but I think it may be.

But to answer your questions, “is there a way to get out of debt free?” The answer is simply no… unless you discover a buried treasure in your yard. Oooohps! Forgot you needed a shovel to dig it up.



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Mike Killian is founder of Learning Credit and Debt Management. He has been writing and teaching about credit and debt management issues for over 12 years. His articles have been referenced by various members of the media, including MSNBC and The Motley Fool. Mike has also offered debt elimination seminars to businesses and community colleges for many years.He has an MS in counseling and is a nationally certified as a Personal Finance Counselor. Mike can be found at LearnCreditManagement.com/.
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