Need an advice. I know of people whom are using Bankruptcy to get out of a debt, they NEVER planned to pay to begin with.They just got as many credit cards as possible, maxed them all out and filed for bankruptcy.These two do not even have a regular job. This, I think, is called FRAUD. Where do I report these crooks?

Richard March 11 2010 8:34 PM

My husband has been laid off for 19 months. Our mortgage payment is 1,000 a month plus I have took some loans out of cash expresses. We are behind on our mortgage and we also have some credit card debt around 5,000.00 which one has already filed a judgement on me. Thinking about filing bankruptcy our credit scores are terrible. I'm scared and don't know what to do. Any suggestions?

Christy Fraliex March 11 2010 11:23 AM

I am a 26 yr old that has more then $15000 in credit card, and loan debts. I actually called up my creidt card companys and they put me on an arrangment with them that is a minimal payment with no interest. The credit card people will work with you so you dont have to claim anything. You will always be paying someone for something at some point in your life. Dont claim anything just continue to make the payments on time. . I stress every day and make my self sick about. There is always a way to figure things out.

Jessica March 05 2010 2:54 PM

Anyone else think that Dave here isn't as spot on as he makes himself out to be? If you have a credit score of 440, which I do thanks to no one telling me what would happen if I didn't pay my credit card bills when I was 18, that score is going to keep you from doing pretty much anything. Ever tried to rent an apartment with that score? I have. Got denied. Luckily my wife, who has a score of around 510, has a great friend who co-signed for us. We're both much more responsible with money now & with our 22% interest rate credit cards. Even if we are essentially being raped by those companies. But even paying those on time & our $300 dollar a month car payment for a 2003 Oldsmobile with 140k miles on it, our credit, after 2 years, still blows. 2 years of working on our credit & my score is still under 500. At this rate, my score will be 700 in roughly 6 years. So that's 8 years total. Why not just throw in the extra 2 for a bankruptcy & be able to actually rent a place we like, a car that runs & be able to do most things that you should be able to do regardless of a number. Bankruptcy is a very good option. It's not marriage splitting. If it is, your marriage was going to fail anyway. It's not even close to losing a loved one & I'm appalled that anyone would even think to compare it to that. And severe illnesses are one of the reasons why many people are forced to chose bankruptcy. Thanks insurance companies! You're the best! Sure, many jobs ask if you've filed a bankruptcy, but I'm sure those jobs would also check your credit score. I've been turned down from 4 jobs because of my terrible credit score. I know this is an old post, but Dave is wrong.

Tristan March 03 2010 7:46 AM

I've been paying credit cards WITH credit cards for 6 months now, and this is the final month I can do that. I'm $35,000 in debt, mostly on CCs, my income was only around $6,000 last year, I'm divorced, nearly 60 y/o, have no assets, my business has failed, and I'm desperate.

Gwen March 01 2010 2:24 PM

I have lived in my house for 22 yrs. I have refinanced 3 times so now my mortage payment is 1780.00 I owe for 28 yrs.My other debt is about 45,000.My husband lost his job abut 1 yr ago and I make 22,000.00 per year. I feel like there is no way out BUT to file chapter 7 and walking away from everything including my house,I think the stress will kill me and the bad credit will only irretate us. We can just stay with our daughter and help her, she welcomes the idea

Deb February 24 2010 7:10 PM

I am 34 year old mom of 2 girls ages 12 and 14. I have been through 2 terrible divorces and have decided that with 12,000 in credit card debit and 2 repos that a chapter 7 bankruptcy was my only way out. i have recently filed that bankruptcy and await my court hearing. since all my debt is old debt and I feel like I am alot more responsible with my money nowadays a bankruptcy is that the best and only way to fix my credit problems. my credit score is udner 500 right now but after my bankruptcy even though it will effect me for 10 years this way i will be able to help my children go to college when they get out of school. Its a very stresssful decision to make but in the end for me it will be what ultimately helps give me my life back. I dont think anyone should take filing a bankruptcy lightly but I do believe it can help put a life back in order as a mature adult.

Cheri J. February 24 2010 8:49 AM

My wife and I have managed our money poorly, no doubt. Especially when we were both in college. My wife's mother was dying out of state so she used the credit cards to pay for multiple trips. Then we decided to try to get a job where her mother was and my wife did. But I didn't find a job for 5+ months, in which time we pretty much lived on credit cards. We missed payment on couple of the cards after years of making the payment on time, the rate jumped from 9% to 29%. All of the sudden the minimum payment jumped and suddenly we started struggling to make payment. I finally got a decent job but the past is really starting to take a toll on us. We bought a house but paid little more than we should have. And once we owned the home things started to gradually get worse. Things needed to be fixed etc. We enrolled in a credit counseling program but we're paying $1440 per month for last two years. We've seen some progress in credit debt amount but it's getting to the point where we can no longer afford to pay for it. I am current on house and car payment but our credit is already damaged so if I can keep the house and the cars through chapter 13, why would it be a bad route to go? I have a steady income and a job that I'll most likely not lose anytime soon. I make around $60K per year and my wife around $20K per year. I feel like if we can just get a relief from the credit card debts, we'll be okay even if it'll stay on our credit for 7 or 10 years.

James February 22 2010 2:38 AM

Have 5 kids and drive a luxurious 10 year old chevy truck, have a 5 year old van with every caution light on, and huge credit card debt. I get all of the TMM principles....debt has piled up from car repairs, drain field, air conditioning repair, dead appliances....the house is 3o years old and just big enough for us. We buy all of our clothes at salvation army, we do find some real nice Polo stuff....we buy groceries, pay $700 a month to self insure ourselves with a high deductible HMO, the Local Endorsed Provider from Daves show was no help, the rates were higher the coverage worse. I take my lunch to work and by soft drinks by the case for refreshments at work and stay away from the vending machines. Have not allowed our 17 year old son to drive, cannot afford the insurance...we have tried everything we can, but guess what the 1200 a month in credit card debt is bleeding us dead....have not contributed to my 401 K in 10 years....have no idea what we could do....income is 70K before taxes....We will be filing bankruptcy......I HAVE NOTHING TO GET RID OF...no boats, cars are beaters..house is 140,000K.....I can guarantee you that with the 1200 gone per month we can get on our feet....we will not change our lifestyle of scrimping by at all .....how will we be victims in this.....it just happens...I can't wait to hear the word discharged!!

Jimmy G February 20 2010 7:10 PM

I filed Chapter 7 in 2002. At the time I was making 40k, but with 23k in credit card debt, as my lawyer put it, I was essentially already bankrupt because I was paying out so much of my income in credit card payments every month. It was the smartest thing I ever did. An amazing burden lifted. And it has not impacted my credit as much as I feared. I was able to buy an excellent used car within a couple of years (which I still have and have paid off). I have been able to get more credit cards since then, too. Some of them have had high rates, but not all. I even applied for a mortgage in 2007 and at the time my FICO score was 680 - which is considered "good". So, yes, the BK stays on your credit report for 10 years and you will probably pay higher interest when you get credit, but to me it has been worth it. Chapter 7 is a chance to wipe the slate clean and start fresh. Take advantage of it for YOUR sake. Don't worry a bit about the banks or mortgage companies because they do not care about you or your circumstances. Let them suffer the consequences of their bad decision to give you credit (if that's how they see it). Especially some of the folks who've posted on here who are in their 60's - file Chapter 7 and live the rest of your life in some peace. My only concern now is that I've lost my job since Dec 16, 2009, and am worried that since the BK is still on my credit, I may have a hard time finding another job. But, we'll see...

justanothertexan February 19 2010 12:22 PM

We just recently opened a business. We are not reaching or sales like we researched, even after doing marketing and research. We have numerous loans and doctor bills because of a car accident that all happened in 3 months. These payments exceeds $165,000.00. We are strongly thinking of filing Chapter 7 Bankruptcy. What do you think? What would you do?

Trish February 15 2010 6:07 PM

can anyone give me some straight answers on these debt releif companies that say they can reduse my debt 60% for a low monthly payment. I know that I have to pay taxes on the balance left over, but why not take advantage of this? I dont plan on buying anything on credit for a few years so what is the downside. Thanks in advance for anyone that can shed some light.

thomas February 12 2010 5:57 AM

Bankruptsy didn't hurt my marriage, it may have saved it. We were in debt over 20K in loans, had a car repoed, and owed 60K in back taxes. We filed a chapter 13 and will be done with it in another 14 months. We have learned to live on a cash basis and the $1500 per month we have been paying the court will be help u7s avoid getting in this situation again.

OnTrack February 10 2010 10:32 PM

We just finished Financial Peace in December 2009 and loved it! We are following all of the baby steps etc...We are starting with around 10K in credit card debt...no problem. Our biggest problem is involving the company my husband owned with his brother. His brother ran the entire business end of the business and my husband worked in the field. Come to find out later his brother wasn't paying quarterly taxed and got us into a lot of trouble with the IRS. We currently owe almost 50K to the IRS for taxes dating back to 03 and 04. We have tried to file offer in compromises and got rejected twice. We have accumulated horrible amounts of penalties and interest and there is no way we could get on a payment plan because our budget won't allow such a huge payment. That business went under 3 years ago and my husband started his own business which has been successful and he loves what he does. We are unfortunately left with this burden of tax debt and 2 leins on our credit which cannot be lifted until it's paid off. We just met with another tax proffessional and he advised us that our best bet would be to file Chapter 7 because it would wipe out that tax debt. We are so confused at what to do. We have never had bankruptcy in our vocabulary. We have 2 little boys and one on the way and want to figure this out asap! Please help! Financial Peace doesn't talk about tax debt for small business.

Lynn February 10 2010 2:49 PM

Chapter 13 saved our home and our marriage. If you can settle your debt you should... just remember you have to pay income tax on any forgiven debt as part of the settlement. After 2 years of unemoyment and no savings at all and being underwater on our home by over $100k and then finally getting a job at $50k a year less, chap 13 was the best way out for us Our credit rating was already trashed so we had no problem with the thought of chap 13. Again, it may not be your answer but if you wait too long bankruptcy may be your only choice.

Dan February 09 2010 6:29 PM

This is for myself and the for Nick L, who posted a comment also... AS FOR ME: I am in my 30's, live in NYC and been out of work since 2007, no benefits, on & off Unemployment and very very few interviews...I have accummulated over $60K in credit card debt and still have $20K on my car loan... Don't know what different to go in??? Considered bankruptsy, yet also feel like I'll really regret it long term... AS FOR NICK L... many are in our situation...DONT let it keep you depressed..life is too short and it's only money..a piece of paper. GO OUT and enjoy your life, your young and there are so many places to go and things to do that don't require having alot or little money! Just a little advice because i've been there as well and decided i'm not going to let my financial situation dictate my life and youth! GOOD LUCK.

Doreen February 07 2010 12:58 AM

I have not had a steady job since 2007. The have been employed on and off for 5-8 at one place since then. I even moved for a job offer in May 2009 only to get laid off in November. I ammassed a huge amount of credit card debt due to unemployment, unexpected car repairs & I will admit irresponsibility. I am employed now as a temp thru supposedly Mar 2011 -- I get no benefits, I dont get paid holidays or sick days, if I need to take time off to interview it is on my own dollar. Have over $70,000 in debt, decided I would only pay the cards that were manageable. Now I am about $40,000 delinquent. Creditors will not help me or lower APR's, CCCS wants $970 a month for 48 months, these 'debt settlement co's want $1,215 for 50 months. At this point I am just biding my time until I get a lawsuit and need to sue. I am 32 and single -- hardly eat, dont' go out anywhere, just a very depressing life and have zero friends whatsoever I am holding onto every dollar possible -- sold off many items

Nick L February 03 2010 10:46 PM

I don't have any income for last couple years and about to close my business. Currently, I have about 100k credit card debt. My wife's income is able to pay for the mortgage of our house but not much left. We are considering Chapter 13 bankruptcy, and would like to keep our house. Will the court force us to sale to house to repay the unsecured debt?

Hans Wu February 03 2010 7:29 PM

Terrified! My husband and I accumulated a great deal of credit card debt. Now, I am underemployed and our income has dropped by 50%. Combine that with medical expenses ( not 7% so we can't even write it off). We have been unable to pay my self-employment taxes and are in trouble with the IRS too. Help.

Leslie February 03 2010 3:22 PM

my husband has a credit card debt since 2000 and did nothing about it because he has to go back to his country and look after her shizophrenic sister and solve so many problems... and just today, he received a letter from a law office about his credit card debt? he thought it was considered bankruptcy? what do we have to do.. we don't have money to pay for this? he was laid off to his job and i really dunno how we are surviving...

tweety ang February 02 2010 11:17 PM

I had to file chapter 7 in 1994 due to the death of first husband, and I still feel awful about it and I did re affirm with some. Now, my second husband's pay has been cut, and we cannot hardly make it. He has $28000.00 unsecured debt; we are covered under homestead act because I am disabled. I do not want to file any kind of bankruptcy but I do think if he does it should be chapter 13 and I do not want any part of it.

Berta February 02 2010 7:07 AM

HELP, Lost & Confused. We have appx 150k in debt, primarily on unsecured lines of credit. This money was used to acquire investment properties. One of these did not work out, I could not afford holding costs and sold out to my partners for 50 cents on the dollar. I also work a full commission job in which I have made 20k over the past 7 months so we have utilized our credit lines to pay for all of our living expenses. Based on the current economy, I am not expecting a great year in 2010 for my income. Right now I feel like it is Chapter 13 or selling off my 401k with penalties, kids 529 plans and will still have debt remaining. We have not been late on any payments but I am not sure how I can pay any of my bills next month with minimal income in sight. Please give me your 2 cents.

Matt February 01 2010 8:32 PM

My husband and I both have stable jobs and gross around $100K. Unfortunately, we have about that much in credit card debt. When I couldn't make the minimum payments on my credit cards 7 years ago, I took out a 120 second mortgage with variable rate interest, which is now at 11.4%. I tutor to supplement our income. We have also started a small t-shirt printing business to try and make more money. I don't want to consider bankruptcy but I'm beginning to feel like there is no end in sight no matter what we do. I really need some advice!!

Kelly January 31 2010 11:45 PM

I'm very torn over the bankruptcy issue. If Dave or his staff are listening, this is your chance to "talk me out of bankruptcy" as being the best option right now! Attorney says I'm a prime candidate since I currently pass Chap 7 means test at the moment. If I do a short sale on home and a workout with creditors I have severe ugly reporting on my credit for 7 years after the last workout pymt (so a 5 yr pymt plan will have severe ugliness on my credit file 12 years from now) and the short sale does not guarantee the growing trend of the mortgage companies coming after the home's deficiency balance up to 5 years after the sale or potential IRS 1099-C reporting issues vs. the alternative of knowing from the day of discharge that the clock has started on getting this behine me regarding the ugly reporting on my credit file and the potential to put away for retirement and savings the $$ that would be paid in a workout plan to creditors. I've repaid over $2MM in loan principal in my lifetime. My current outstanding unsecured debt is $97K with no missed pymts. I have paid these same creditors $76K in interest over the life of these accounts. I have 27 yrs of perfect pymts with the exception of 2 missed mortgage pymts last summer. I've been on "trial" loan modification pymts that I have made on time for 7 months since then. Just recv'd letter from Chase/WaMu saying "sorry....modification denied"! Short sale will leave at least $200K, possibly $300K upside down. Spent $100K in savings and added $40K debt trying to keep the house and taxes etc until the economy recovered....dumb move. Should have short sold years ago but figured they would take my savings anyway. I'm 48 y/o & part owner of a small business that I was able to take $3000/mo from until December. Sales have slowed and a big customer has filed for bankruptcy without paying us. I have a car with 115K miles worth approx $3500 and it runs good (free & clear attorney says will probably be able to keep it after discharge)....approx. $2000 worth of stuff (furnature, clothes, etc) Evertthing else is gone. I can rent a room long term with a friend who has just divorced for $250/mo and really start to put some $$ away. Borrowing $$ in the future is of no concern to me....I will never borrow again unless for a home and I understand that Freddie/Fannie guidelines allow for approval 2 years after discharge. My big concern for the BK on the Credit Report is for employment not future borrowing of $$. So...anyone out there that can help with their support either for or against a Chap 7 filing, your kindness is greatly appreciated. Dave & Co....if you listening, here's a chance to talk me out of this b/c if there is a better option considering these circumstances, I'm all ears!!!!! Thank you and bless you all!!!!

David January 30 2010 1:23 PM

We have sky high credit dept. Mainly because of the high interest rates that's made or dept go way up. I want to know if it's ok to file bankruptcy in a situation where credit dept is so high; it's almost impossible to get out?

Carl January 29 2010 11:29 PM

I have large credit debt, but I was paying always on time and more than payment amount due every month, but this year credit company raised 27.99% APR which is sky high to anyone. I had to make a choice so I went to get help.

nana Tasaka January 27 2010 6:58 PM

Our primary residence is 150K+ underwater. Our investment property is 50k+ underwater. We don't even want to keep the properties since they are both in declining neighborhoods. 12k in credit card debt. My husband and I are starting a family which means I won't be able to work for some time when the baby comes. Our credit is in the 700s right now and we're current on all our payments. Is a bankruptcy the way to go? 2 lawyers we spoke with said yes. Am I going to regret this 5 years from now?

Jane January 27 2010 10:09 AM

How would one find one of these counselors in Minnesota? "Most bankruptcy cases can be avoided with proper help, such as our certified counselors"

pattimo2 January 27 2010 12:17 AM

Yes...there are people that abuse the system. But it is a fresh start for those who are a victim of circumstance. Such as Divorce, or loss of a Job and illness. You are protected by the court...and can regain your credit fairly quickly.

Irene January 26 2010 2:49 AM

I agree, everyone wants to file as an easy way out. I suggest trying to pay the debt off first. take responsibility. I know its not easy.

FinancialBondage.org January 23 2010 10:04 AM

Thank you for all of this advice. We are currently in a bind. We have huge debt because of a loan from medical bills that were not covered by insurance after I had a car accident. We also have the usual bills that everyone else has; neither my husband or I make a ton of money, but I just found out I'm losing my job. I make the bulk of the income doing transcription at home, which works from my accident injuries. I don't know what we will do when well ovr half our monthly income is missing. I am trying to find another job, I've been rejected almost 30 times now. Injury wise, working at home so I can do my therapy, etc., works best. We don't want to lose our house. Yet we have other debt as well. We just aren't sure where to turn. We have no savings obviously because of our debt.

Lori January 21 2010 12:01 PM

Debt settlement programs don't work. Usually they just put off the inevitable...that you have to file a bankruptcy. Don't waste your money and get further in debt by falling for a "magic scheme" to repair your credit. If you have overwhelming debt that you can not reasonably pay off in your current circumstances, then you may need to file a bankruptcy. Yes it is painful, but yes you will survive and go on.

EstherJ. January 18 2010 11:14 PM

Have had some really bad luck lately.The week of Christmas our furnace blew up and so did my car. I live about an hour away from my job so I need a vehicle. Our other vehicle has over 120,000 miles on it already. My husband is disabled and gets disabilty payments every month and I get some disabilty for our 3 kids. Our house is falling apart and needs a new roof soon which I'm sure will not be cheap. We are also in debt over $12,000 in credit cards and over $3,000 in medical bills and we are not even halfway done with our house mortgage (which is thankfully made to my parents). We had to get a 3 yr. loan for the furnace. What do I do about a car? We are just barely keeping our heads above the water even though I've really been trying to pay things off. Seems for every step forward we take 4 steps back and are getting nowhere. Can you even buy a car after declaring bankruptcy? They also won't let me touch my 401-K. My problems are not considered a hardship under their rules. We have also declared bankruptcy over 7 years ago when my husband became disabled. Can we even do it again? Help. I need advice and feel desperate.

Karla January 17 2010 7:46 AM

feeling hopeless & scared. advised that income is above limits for ch 7 as well as 13. i'm 2 mos behind on $400K mortgage, credit card companies harrassing, various bill collectors at door, calling @ work, 40 days behind on auto loan. impending doom :( does anybody have any clues why they would tell me i can't do ch 13? advice? suggestions, PLEASE? thanks

becca January 15 2010 5:53 PM

With so many people in the same boat I don't see how filing for bankruptcy, walking away from your home or anything similar is going to be viewed the same in the future. If everyone has the same 'branding' then it won't be as sneered at. This is happening everywhere to good people simply because of loss of jobs or similar reasons beyond our control. I lost my job a year and a half ago with no good prospects of employment in sight. My unemployment runs out in 11 weeks. Our property taxes are behind and are currently in the process of foreclosure, they are not included in our mortgage unfortunately. We either come up with $4,400 by March or we lose our home. Our mortgage is not currently behind but I am now withholding payments to possibly use that to pay the taxes. We can't get help from the VA because my husbands army years were not during war time. We cannot get help from welfare either. We owe more on our home than we could ever sell for, so there is no chance in selling it. Mortgage company doesn't want to do squat to help, I don't understand that either. Can't file for Bankruptcy, can't short sale, can't pay the bills...sometimes I think we should just mail the key to the mortgage company and walk away. It's a very scary world right now and I'm afraid the homeless population is going to increase ten fold.

Brenda January 15 2010 1:43 PM

even with debt settlement co. your credit is destroyed. why put yourself in a debt settlement program that will cost you thousands over the life of the plan and end up with a non signifigant reduction on your bills anyway??? Probably worse than bankruptcy and you still have all the bills. Chapter 13 is a great plan for individuals who can get a 35000.00 guarenteed reduction/exemptions AND a debt reductiion plan for a one time fee that is interest free. Come on guys get you some legal advice. Chapter 13 is a beautiful thing for poeple who can enter into it half way responsibily. And remember, you can't just simply walk away from anything and everthing is not always exempt even under bankruptcy. in most BR-plans your going to have to pay your secured loans such as a mortgage on your house anyway or consider liquidation/plan under chapter 7, if at all possible and you are working try chapter 13 first. you can always convert to 7. Under 13 when you finish the plan you are comprehensivly debt free and most of the plans are only 5 years. THINK SMART!! and GOOD LUCK!! i'm sorry that we are all in this delima!! God Bless Us and I pray things get better.

Johnny January 13 2010 6:51 AM

I was stuped with debt. and got 61,000 in. i keeped telling myself that id get my business going and start paying it off. then had vancancies in my rental property and it went into forclosure. it was sold on dec. 2 i stoped paying on the cards in June but still havent been able to save any money. $1500 on truck repairs took away any savings and any chance to start paying on credit cards. even if i start making more money i dont see paying off the cards even with settlement agreements for over 5 years. i want to do whats right but why not do bankrupcy. as far as i see it i dont have anything else to lose but this big cloud of debt. when i see these stories about people buckling down and paying off their debt in 3 years, these people make 50,000 60,000 a years im nowhere near that. it just seems like the only real answer to me right now. what should i do?

david January 11 2010 8:51 PM

I lost my home in the floods of 2008 and am torn what to do. At this time I am aquiring assistance with the loan, we have moved into a new home and then 1 year after that my finance lost his job for 6 months and now it feels like we owe everyone money and we'll never be even again. I had a attorney tell me to wait till the mortgage company serves me papers before taking action but I am worring about my future and being done with this ordeal. Any advise?

Flooded January 11 2010 11:06 AM

OMGoodness I can't believe the credit card dept here! We don't have that but our problem is mortgage company who will not work with us! We bought our home in 2005. 2 months later my husbands place of employment went out of business. He has another Job now but not the same income. Meanwhile the mortgage went from 1,300 to 1,800, leaves us with 500 for utilities, gas and food. Every year we are in foreclose and when tax time comes, get caught back up only to continue falling short. There is no shopping, there is no going away to places, there is no NOTHING! Family and friends bring us food as I can't afford to buy any. My husband makes "to much money" to receive any help even for reduced school lunches. No one takes into consideration a mortgage payment and why should they. No one made us buy this house and no one makes us stay here. When we bought this home it was just before the bottom fell out of the market... Now we have a house that isn't worth what we paid. We can't sell it.. no banks will give a loan for more than it's worth. It's the only debt we have... But we live in more poverty that most people collecting assistance from the state (at least they can buy food for themselves) We are going to let the bank have their home sense they WILL NOT work with us... I HAVE to feed my family, so looks like foreclosure for us too... Be sure to educate yourselves tho and look at the 1099-c forms too, specially if you do a foreclosure and no bankruptcy.. Can't imagine why a mortgage company don't work with it's people... They take a much bigger loss in the end when a would be home for 135,000 sets a year empty and can't even get sold at 86,000. If they would at least work with home owners they would be getting some kind of monthly payment rather than nothing... Wish someone could explain that to me!

Shannon January 11 2010 9:48 AM

My ex-husband was to refinance his business two years ago to get me off the bank note. He didn't. Now he has defaulted and the bank is coming after me. When all is said and done I will owe, total, about 500K. I saw a lawyer this week who said that bankruptcy might be my only option. I live paycheck to paycheck now. How can I afford more?

Stacy January 10 2010 8:40 PM

I'm 50 years old. I'm a single mother of a 7 year old son. I own nothing, I have no savings I have a student loan debt of 75,000. I can't get a job that doesn't require me to work evenings (I already work 2 nights a week) therefore I have to hire a sitter and pay her more than half my salary. My loans are in forebearace now and I can hardly get by, when they come out I will be on the street just to pay my loans. bankruptcy looks good. I'll never own anything anyway.

Lisa January 10 2010 7:28 PM

I AM A 20 YEAR OLD DISABLED VET BRFORE I JOINED THE NAVY I WENT THROUGH A NASTY DIVORCE. WHEN I GOT HOME I RELIZED THAT MY EX HAD APPLYED FOR CREDIT CARD IN MY NAME AND HAD THEM SENT TO HER MOMS HOUSE AND THEN USED MY CARD AND MAXED THEM OUT! SHE ALSO WIPPED OUT 6 BANK ACCOUNTS AND GOT MY CAR REPOED I AM IN DEPT 35,000 DOLLARS AND WAS TOLD THAT I SHOULD FILE BANKRUPED. I HAVE NO MEANS TO REPAY THIS BACK WHILE I WAS IN THE MILITARY I STARTED MY LIFE OVER I NOW HAVE A BABY ON THE WAY AND GETTING RE MARRIED WHAT SHOULD I DO THERES NO WAY I CAN AFFORD TO PAY ALL THIS BACK. AND MY CREDIT IS SO BAD BECAUSE OF IT THAT I COULD FINANCE MY OWN BLOOD IF I HAD TO PLEASE HELP ME!!!!

darrick January 10 2010 11:42 AM

Home in default with $800K 1st mtg and $130K 2nd mtg... but my home is worth only $750K! Have $24K car loan taken out 3 yrs ago for a car worth $14K now! Delinquent with that, too. BTW... also owe $45K in c/cards. I guess I'll do Chapter 13 BK, save my home, WIPE OUT my 2nd mtg and credit cards, then CRAMDOWN my car to the fair market value and SAVE EVERYTHING. And all I had to do was file Ch. 13 BK... so what?!? Good credit isn't worth what it was anyhow since banks are no longer lending money. TY.

Rumple Stilsken January 10 2010 2:29 AM

Well I'm very glad I'm not alone! I knew I wasn't but it's good to read from others exactly what my husband and I are going through. I stopped paying all my credit cards about 9 months ago - out of necessity. It was either pay all the bills or have food and gas to get to work. My husband and I both have full time jobs and had very good credit for over 20 years. We are buried now. I blame it on the gas prices going so high almost 2 years ago - that's when we started having problems. Since then, the cost of everything has gone up except our paychecks. My husband hasn't had a raise in at least 6 years. He was injured 2 months ago and was on comp. for a few weeks, then a lack of work - now we are 2 months behind on an 1100 a month mortgage. And to top it off I got served today! Being sued by one of the credit card companies. At this point I don't care about no credit for 10 years - that would be a blessing. As long as I can keep my house somehow I don't care. I'm tired of trying and frankly, there's no way we can recover with the economy how it is. I think I'll be looking for a lawyer this weekend.

Patti January 08 2010 8:30 PM

I AM A 67 YEAR OLD WOMAN WHO IS IN DEBT 67,000 DOLLARS. MY HOME IS PAID FOR BUT IS VERY MODEST. I FEEL I HAVE NO ALTERNATIVE BUT BANKRUPTCY. I BELIEVE THERE IS A POSSIBILITY THAT MY HOME CAN BE TAKEN FROM ME. THESE CREDIT CARD BILLS ARE FROM OVER SPENDING, OF COURSE, AND I AM VERY ASHAMED. ANY HELP FOR ME OUT THERE ?

linda January 07 2010 4:47 PM

We have had one of our accounts go to a lawyer MY husband is terminally ill and can no longer work What will happen I have been sending money every month

Lisa January 06 2010 5:48 PM

First, I want to thank both Dave for providing this forum and this resource. Second, I want to thank all the people who have chimed in here, both pro & con. I especially thank Michael for his story. I fear that I too am a "credit addict". And though I can understand the arguments against, most especially the stigma, I think we need to go for bankruptcy. I realize it is painful and also has its costs, but the alternatives just seem too much worse, right now. And we do want to keep our little house. While I really respect Dave's wisdom and experience, it is good to hear from others here, that though it is no picnic, bankruptcy can be a legitimate way out. Thanks to all and blessings.

Steve January 06 2010 5:03 PM

Mu husband was hurt on the job over a year ago... Has not been able to work since.. our income has basically been cut in 1/2... we have done everything we could to keep our heads above water... Then my father became ill and I had to take some time off (without pay) now we are downed in debt.. Credit cards, family loans, we have a house with very little equity.. 2 cars... one we own 5500 on and it is worth 1200..so selling it is not an option... another is a van we owe 16000 on (bought when husband was working and we could afford it) and it is also not worth what we owe... there seems to be no light at the end of the tunnel... we filed bankruptcy 8 yrs ago... we have talked with a lawyer who reviewed our income vs debt and says we really have no choice but to file bankruptcy... we have used and maxed all credit cards to "make it" since my husband was hurt.... what else can we do... The way I see it is, if making late payments is killing my credit anyway, then why not just file bankruptcy? Please help.. We feel so trapped into the bankruptcy... AND I have student loans and am currently attending school to better my education....

Tina January 06 2010 11:25 AM

I'm tired of giving my money away and feel like we will never get above water. Husband has lost two jobs in the last two years and recently took a job out of state and a pretty big pay cut. We have close to $100k in credit debt, $40k in student loans, a $2600 mortgage which includes the 2nd, and 2 car payments. We are way in over our heads, and I'm tired of trying to hold onto my "good credit" which is below 700 because we paid off and closed accounts. Did I mention that we have drained $40K from his 401K? I can't fear stigma, I need relief. I have a daughter in college and a son who's on the way in 2 years. I don't know what else to do. Thanks.

Lisa January 05 2010 6:48 PM

Wow. I am not alone. Thanks. Have about 80K credit card/school loans. Underwater in a $2300/month mortage, $1000/month car payments (3), private school for the son ($500/month). Helping daughter through college. Was making $150K a year and expected a promotion this year. Not only did I not get the promotion, but I got a $45K paycut (at least I still have my job). Ran through savings and stocks options. Pretty much took a risk and it failed (living on the high end of our income). Plan on walking away from the house (short-sale optional). Not going to pay the credit cards anymore. Excellent credit helped put ourselves in this position (because in the end, we are responsible). We no longer fear bankruptcy. Nor do we fear foreclosure. Peace of mind and a second chance to live with CASH ONLY. LESSON LEARNED. God Bless.

Charles & Michelle January 02 2010 10:01 PM

filled 7 in 2005 you learn to be smart with money after bank rup. It is not that bad. This is on my record for another 5 years. financed a motor cycle with a 8% apr and bought a couch for 0 down 0% interest for 6 months.

Dominic January 02 2010 2:35 PM

I really dont understand iam 30 yrs old, never had a crerit card havent finanican anything in the past 10 yrs and have tried to pay on my bills as I do that my credit score has not moved now that Iam laid off i can't pay them off Iam thinking of bankruptcy

pvawter January 01 2010 5:52 PM

I just finished reading "The Total Money Makeover" I have already started my emergency fund. My bankruptcy was final 15 months ago. It came at a time when I absolutely had no other options. My "good credit" partnered with my stupidity got me in way too deep. I had two houses, 30K in credit card debt, was going through a nasty drawn out divorce and had just lost my "stable" 60K per year job. Unemployed with 1600.00 house payments, and one the houses being bridge-mortgaged. I had to pay for them both or loose them both, couldn't just pay for one & let the other go. Having good credit, in my opinion was the worse thing that ever happened to me. Because as Dave says in his books, we have to "learn" how to handle our money, and I had never been taught. I think I'm a great candidate for the Total Money Makeover, because I've already gotten baby step 2 out of the way. I now have an 850 a month house payment and I'm self employed. No i didn't borrow the money from a mortgage company, I got someone to owner finance me a small house on a 7 year loan. I'm 13 months into it. Yes it shows up evertime i have my credit run, and when I get home at night I thank God, because there has already been several occasions where I would have taken the credit that is so freely offered these days. Credit was my drug, and I was an addict. And if made available to me right now, I'd like to say I'd say no, but I can't guarantee I would. So the best thing for me is that I DON'T have credit now. So I'm going to have to disagree with Dave on this one. For us credit addicts, (I know I'm not the only one) not being offered it is the best way to recover from our addiction. Filing chapter & is a sure way to not be offered any "good" rates on a refinance or brand new credit card. It's mind boggling how much my junk mail has went down. All those credit card offers & 2nd mortgage offers that I swear I got 20 a week, have magically disappeared. I pay cash for everything I buy. Have a decent truck that is paid for, and don't dread going to the mailbox every day. It's really a great feeling. Even tho I know its a brand that will forever be on my name, it's been worth it to me. I NEVER want another credit card, and this bankruptcy has ensured I won't be offered the temptation for awhile. Now after reading Dave's book, I've actually created myself a budget & can see myself saving lots of money in the near future. Bankruptcy gave me relief..... Dave gave me hope!!

Michael December 29 2009 7:02 PM

Please help me understand this: A married guy I know, spends week ends in the Keys, summers, the entire family takes a trip to South America, frequents fancy and expensive restaurants, in the winter time, they go to sky resort in Tennessee, yet, he claims to be a handyman and his wife cleans a home or two a week.In the meantime, he is planning to file for bankruptcy. My take is that he is in some kind of illegal activity that is difficult to pin down. Will he be legally allowed to file for bankruptcy?

Rick December 29 2009 9:18 AM

I am 64 years old woman, my husband divorced me last April. I am disabled and trying to apply to disability (been 3 years now that they have denied me). I have a little pension, and Social Security which amounts to $1400.00 per month. The bad thing is I own a credit card $40,000. My payment to them is $900.00 per month. which leaves me 500.00 to live on. The other problem is my insurance is $400.00 per month. Now I have a total of $100.00 per month. My savings is almost gone, my only alternative is to file chapter 13 or 7.

Judy Paaren December 25 2009 8:15 AM

Hello all, I find it ironic that businesses can file bankruptcy all day long, but when personal individuals file -they receive the scarlet letter. If you cannot pay the bills due to reasons out of your control - there is no shame in filing. You will gain more peace about not having a mountain of debt with creditors calling you. Filing isnt a free ride it stays with you for years & makes you be frugal. Everyone is entitled to a second financial chance - forgive yourself, learn from it, & work at becoming a good steward.

Kate December 21 2009 1:31 PM

My son was in a car wreck and owes close to 1/4 million $. Driver had no insurance - not a license either...unfortunately the driver died. I think bankruptcy for my 22 year old is the only way for him.

sab December 16 2009 10:24 PM

I just got divorced after a 30 year marriage. I was left with 40 K in credit card debt that I cannot afford. Needless to say, my house won't sell in this market and my payment is 1700 per mo. I have started the chapter 7 process and was told I qualify even though my income is higher than the amount limit in my state. I hear Dave talk about avoiding bankruptcy at all costs but I don't see an alternative. The FP counselor says to sell the house even at a loss and start paying everything off. To me, chapter 7 seems like a better way to start over than this. You can't give what you don't have.

Brett December 15 2009 10:27 AM

I posted earlier on Dec. 3rd. Update. Part of my post included that Bank of America has informed me that they are taking the 5 year fixed loan they sold me 2 years ago and changing me to one with higher rates based on prime and APR. I questioned it because I had never heard of such on a fixed loan, only to be told they were doing it to everyone. I was so discouraged. I was even having a hard time keeping a christian attitude about it. Husband lost his job 6 months ago and we don't make enough with my job and unemployment to pay the minimums and still eat. We were considering debt counseling with settlement. I know my scores that are in the mid 800's would take a hit but we are out of savings nearly. Well last week I got another letter from Bank of America. The letter said they had reconsidered and now they are not going to change my loan or the rate. I could not belive it. I know what the banks are still doing to people is wrong. And we are still in soup with no job in sight, but this was indeed at least a praise.

Tammy December 14 2009 4:26 PM

My bankruptcy was final Dec. 5. I had planned on getting caught up on the credit cards when I received my pension, but I lost over 1/2 of that as well. Leaving very little left, I paid my school loan (will graduate in June) and my daughter bought 1/2 of property, so that is getting paid. I have tried getting part time work, but to no avail. With God's grace, I'll be able to find a job after I graduate and get started on good financial health. I am grateful for my good health, family, friends, a roof over my head and food on the table. One day at a time~

Anne December 14 2009 3:51 PM

Yes it is better not to have a bankruptcy sure but sometimes it is just to insurmountable. OK it stays on your record for 10 years but how long will it take to pay off the debt?probably More than ten years. How much cash can you save in ten years when you have no more bills? Trump has multiple BK's Kmart, Sears this list goes on and on the big guys do it why not us.

Sam December 11 2009 11:53 PM

Ok so I lost my $60K job this past February. I have been working with my mortgage company since then and I still have not received a modification. The mortgage company put me on a Forbearance plan until the modification goes through but in the meantime my mortgage loan is sold to another company that does not honor the same forbearance plan. So I have been sending half of the payments to this new company and still in the process of foreclosure. On top of that I have over $60,000 in personal loans and debt that have to be paid, on top of that a car payment, and utilities and I only making $39,000. Now I have talked to people about filing Chapter 7 and they said that it was the best thing they could have ever done. My husband is getting ready to lose his $35,000 job at the end of the month so that income will be gone too. We just don't know what to do. We purchased the Total MoneyMakeover book but right now we can't save because we are so far behind. We don't know if we need to let the house go and move into an apartment or keep sending in money to the mortgage company hoping to get a modification in time to stop the foreclosure. I am so frustrated and tired and the only hope I see is Chapter 7, but I am concerned about what it would do if I applied for another job. They say that that you would not be discriminated against if you have filed for bankruptcy, but some people actually do not get jobs due to that. Please advise. Do I file bankruptcy or not? If not what other alternative do I have? HELP HELP!!!

Kisha December 11 2009 11:06 AM

Had to file bankruptcy due to our debt. Just finished up on the 341 meeting. Husband lost job two years ago and have lived off the credit for over two years now. Not happy with the decision we had to make but after financial counseling and much praying..we had to make the decsion to do this. It is never an easy decsion and I hope you all do not have to ever go through it. We are starting over not by choice but by necessity. Hopefully Ramseys info will help us stay out of debt.

Margaret W December 10 2009 4:39 PM

Here is my story. I own a business that I started over seven years ago perfect credit, and recently a former employee of mine being my office manager committed fraud. She wrote in excess of 60,000 dollars of forged checks and over 10,000 dollars of fraudulant credit card charges. The bank said it is not there responsibility even when the employee confessed to the crime. So I have no option but to file, amazing how our justic system works she has not been arrested yet and she might not even get jail time.The financial system when they get in a bind they get bailed out but when the public needs help they make it very difficult.THEY JUST WANT THE PUBLIC TO ALWAYS BE IN DEBT.

Sergio M December 10 2009 1:52 PM

Will someone please tell me why I will be so sorry if I file chapter 13? Husband lost his job a yr ago, went thru saving, I took a waitress graveyard position. Emergency fund & savings now gone, house is $200,000 upside down, used credit cards to eat and stay warm, never missed a payment in 30 yrs, but ALL of them are going from 7% to 25% no fault of mine! So why not file, drop off the second mortg and credit card debt, but keep the house? I am 50 yrs. old!! If we are not suppose to worry about re-establishing credit and learn to live on cash only, what's the big deal about cleaning the slate and only living on cash from here on out? Will someone please tell me? Yeah, so my credit is ruined for 10 yrs, I am not supposed to be living on it anyway and I still have the house!!!! Anyone out there see something I don't? I have talked with several friends who don't have any regrets..only say it was the best thing they ever did and they all moved on from it buying homes, cars etc. With the exception of one, everyone managed their money differently the second time around....

Lizzy50yrsold December 09 2009 10:55 AM

Both of us have lost our jobs. Looking at options besides bankruptcy but who can you turn to? Credit counselors take your money and don't do what they promise they can do to help. We have approximately 35,00 in credit card debt. The job I took out of state didn't help. The per diem they paid wasn't enough to cover expenses so I had to charge everything to make ends meet. Is the another way?

David December 09 2009 10:11 AM

Was unable to work due to a severe illness. Since then, have been unable to find a full-time job (current job is "on-call" -- I only work and get paid when they have work for me to do). Going through marriage counseling, but may be headed for divorce. I still have medical bills. I have credit card debt and a personal loan from paying for prescriptions and doctors visits that my health insurance didn't cover. I have student loan bills. What am I supposed to do? Even my marriage counselor is encouraging me to file for bankruptcy.

Liz H. December 09 2009 8:42 AM

banks are legally robbing americans. the politions are bought & paid for. the banks can do what ever they want. they take our tax money bail them selfs out. than charge the american tax payer interest on the money they borrowed from us in the first place. then when someone asks what they did with the money. THE BANK CEOS SAY ITS A SECRET. WONDER WHY BANKRUPTCY IS AT ALARMING RATE. THE INTEREST RATES ARE TO HIGH - YOU ARE LATE ON ONE PAYMENT- RATES GO FROM 9% TO 29% IT SEEMS LIKE THE TABLES ARE TILTED!!! TY!

richard relli December 07 2009 12:42 AM

I was not looking at bankruptcy but rather debt settlement program. I know credit would take a hit. Husband lost his job 6 months ago and we have managed to hang on, but we are really down to the bottom. Not enough coming in to cover outflow. Upside down on our home as we thought about selling. My car will we paid off in less than a year. I wanted to try to keep it since it is a good vehicle and almost paid for. We can pay the bill and have no food money, or buy food and not pay something. That is where is has come to. We don't eat out or buy stuff. We pay the minimums but credit card companies wrote me and said they were taking my good rates and raising them. I cannot op out and we don't even owe 50% of what we could charge on them. FICA score right now is 840. Bank of America has even taken my 7 year fixed loan and is changng it into APR plus prime until paid . I protested asking how they can do this and they told me they were doing it to everyone. Can't opt out. I am so angry with them. It has been hard to keep a christian attitude. Any suggestions? Thanks

Tammy December 03 2009 8:02 PM

To all who are considering filing bankruptcy - pls don't! I was in debt over $400,000 business and personal - I won't say it is easy, but it is do able. Lift your worries up to the Lord; then make a list of all your bills, current and past - call one of Dave's financial counselor's in your area. Bare minimum get the Total Money Makeover - it will change your life now and forever. Blessings to all -

MomPeney December 03 2009 3:48 AM

Some people have to file or they will be slaves forever.

Connor December 02 2009 7:52 PM

my husband is ill with cancer. I think we should sell the house. the payment is 1788.00 dollars, not pennies. he works two jobs now but will soon be on short term disability from one and have no benefits on the other. He has 18 charge cards and owes on all of them! He says the answer is not to sell the house but to file chapter 13 bankruptcy! He is nuts! His bills are just beginning, I will have to make the house payments, take care of him and the kids as well as this huge house. What happens to the kids and I when he is unable to work? who pays his chapter 13 bill, who helps with the house expenses, gas lights water and on and on? no bankruptcy for me!!!!!I say sell the d.... house!

rene' December 02 2009 6:30 PM

Macherie, Start with the basics. Keep food on the table and keep the lights on. Tell everyone else to kiss your ankle. Sell the car to get rid of the payment and buy a junker that runs. Look at selling the house and downsizing. Then with the money you are saving from the car payment start paying off dept starting with the smallest balance and tell the other creditors they have to wait. Your credit rating will take a hit but not as bad as bankruptcy. With a little work you can get through this and you will be stronger for it.

John November 24 2009 4:09 PM

My husband lost his job and it took 3 months to find another. In that amount of time we managed to get extremely behind loosing all our credit. I owe more than I will ever be able to recover from. I can only stay current on the important things like mortgage, car, utilities etc... I don't know what to do. My husband is now working but we cannot get back on our feet. If bankruptcy is not the answer what is?

Macherie November 23 2009 10:09 AM

Filed Ch.7 in 2001 due to loss of job. Have since bought home and was doing well until death in the family, son injured. Had to work 2 jobs to pay doctor bills. Had student loans. Sallie Mae threatened garnishment so I had to start paying 300/mo. Credit is gone. Now facing foreclosure. Any suggestions?

Rhonda November 16 2009 8:18 PM

Personal 2 cents. With the current restrictions on bankruptcy filing, I have found myself in an enviable position. I earn more than the median for my state, and so cannot file Chapter 7. However, I do not earn enough to make the payments required under Chapter 13. The biggest single chunk out of my income is my mortgage, which cannot be impacted by BK as it is currently constituted, and I do not live in a state which exempts the primary residence from creditors; which doesn’t matter, as the value is now underwater. Here’s to hoping that they don’t literally bring back debt slavery, because figuratively I am a perfect candidate.

shandra November 11 2009 9:29 AM

Upside down in a home we not longer live in re: had to work in another state. Our prices have plumeted! Our accountant has advised us to turn in the keys? Our credit is good and up to date on our bills but it is getting tougher and tougher to justify putting more money into this house.

cherie November 11 2009 8:30 AM