Browse Category by Deep in debt
Bankruptcy, Deep in debt

Thank you so much for the advice

Hello Everyone:

Thank you so much for the advice. I’m going to try to answer some of the questions being asked:

School costs: we owe $65 dollars per child for school fees. Our oldest son has been pulled out of the regular school system and has been placed into another school to help him with his behavior. This is the school costs I was referring to. We are supposed to be paying $150 a week for this school but they are taking it down to $60 a week. It sounds great but this is still hard to come up with.

How did we get into the situation? We purchased a new home about 11 years ago. Since this was our first home and it was new construction we had to buy everything from the bottom up. We used credit cards and maxed them out very quickly. We haven’t used a credit card in years. We are literally just trying to get them paid off but doing this isn’t as easy as it sounds. Something always comes up.

Yes, 100K is a lot of money and yes, you would think we would be able to live well off of this money but we aren’t. This just proves that people who do make good money can get into trouble as well. I’m not proud of what has become of our financial situation. I know we could be living more comfortably. I also know that I have contributed to our money problems. I tend to spend more money than I need to. This is something I am working on and I am committed to changing.

I have to admit what I have been doing lately. With Christmas we have been struggling more than ever (as I am sure everyone here has experienced). We have credit card payments that are due that I am not able to pay. We are getting phone calls daily and I am avoiding them. I know this is wrong. I know I need to talk to them and try to work something out but I can’t stand the thought of doing it. Some of the people are just so rude. I decided to get a loan from this company because I like guarantees and I am a person who wants to pay all of her bills. We charged everything and it is our responsibility to pay off our debts. I think I just need to bite the bullet and start answering the phone or else I will never get a handle on our situation.

Thank you again for listening to me and for helping me work through this. I’m sorry if I offended anyone for putting down our yearly salary.

Now that someone else has broached this subject my question is on the 30K in unpaid medical bills. I would think there would have been medical insurance at a job paying 100K a year. I never had medical insurance through work but pay $300 a month for myself. My deductible is $1500 so there would be no way for me to accumulate that kind of bill.

No offense taken, Why I mentioned this is that an Oprah show I saw a few months back had high-earners who, like you, are up to their eyes in debt.

These people were earning over 100K a year, and some of them, even more.

Answer the phone. Tell them you know there’s a problem and can they help with advise? Many of them will either close the accounts, and have you pay lower, but steady payments. Others actually referred me to credit counseling and another lowered my payment for six months. Then though the payments went back up, I’d paid a lot to the principle and that helped a lot.

Having worked in the financial world, if you do consider a bankruptcy, you might suggest your husband talk to his HR department first. Some jobs can be adversly affected by a bankruptcy, although if you can prove it’s medically related it might make a difference.

Bankruptcy, Deep in debt

Re: Desperately need assistance!!!

First thing, I would advise credit counseling. The one I went with was called GreenPath (, which a local TV business reporter recommended on his newscase; I hope there’s a GreenPath office near you. They advised me that bankruptcy was not as bad as I thought it was.

Like you, I had several maxed-out cards, and ended up filing a Chapter 7 myself (to be fair, this was in 2005, right before the new laws kicked in). Hopefully your case won’t be worse than a Chapter 13. In the end, all my debts were discharged, I never had to give up or sell my house, and to my surprise, the trustee never really considered liquidating what little I have in the way of assets. Yes, I ended up losing those credit cards, and I won’t be getting any new cards for a LONG time (C7 is the nuclear war of credit), but I learned to budget and spend my money more responsibly. And getting those bills off your back is a huge relief. Like you, I have also had to cut back on a lot of things to better make ends meet.

Above all, you do NOT want to end up like the Waleskowskis, a Waterford, MI family whose father, a cop, resorted to stealing money from a drunken driving suspect in order to help pay a tax bill. Prior to this, they had been rolling their credit bills into their mortgage several times over a number of years and this apparently caught up to them. I will not give more details because it is a tragic, sick, horrible story; for those who want all the details, I suggest you look up “Michael Waleskowski” on your favorite search engine.

I agree with this post about your situation. What else can you do as a family to even cut costs more. Part with cable or satellite TV? Settle for an older used car or just one car. This makes time management or setting up rides with others a challenge, but it may have to be done. Hey, there was a generation of Americans who survived with one vehicle -especially since most women were SAHMs- like you are. My mom stayed at home until I was 13 and she never drove until I was almost 17. Other women she knew, who worked or needed to run errands on certain days, would drive their husbands to work, so they could have the family car for certain days.

Think of as many other “things” you could do without. Remembering that it’s only temporary while you work on a plan to pay off those debts. I had a really hard time at first letting go of “things” I thought were needed for my lifestyle, but after I was clearing out my debt and finally got debt free, I realized that I never needed to spend as money as I did to live a happy and fulfilled life. Filing for bankruptcy could become the absolute last solution, so do very detailed research about it.

What kind of health problems prevent you from working even part-time or flex-time for a local business? Is there anything you can do to also solve this health problem to a point where you can work to help pay off some the bills?

Keep your eye on this site and get plenty of advice and suggestions from people who’ve been there. There is a site called DollarStretcher, that I get tons of money saving ideas from quite often and I’m not even in debt anymore. Check it out and sign up for their newsletter.

Deep in debt

Desperately need assistance!!!


I am new here and am in need of a lot of help. I am a stay-at-home mom to 4 boys. My husband is an engineer who has a fantastic job and is compensated very well. Here’s the problem: despite the amount of money he makes (about 100K) we still struggle from paycheck to paycheck. We have about 6 credit card which are all maxed out. We have 2 kids in braces which we are struggling to pay, we have about 30K in unpaid medical bills, school costs, etc. etc. We literally don’t know how we are going to put food on the table from week to week. We don’t take vacations, we have cut way back on eating out, we watch our electricity use, water use. We just don’t know what to do at this point. My husband borrowed 8K from his 401K in November to help pay bills, which we did, but we still are struggling.

I am not able to get a job due to some health problems I have. I’ve thought about credit counseling but I am not sure that is the way to go. We don’t want to go the bankruptcy route but what other options do we have?

Can anyone help me?

If you saw smoke coming from under your door, you wouldn’t wait to see flames before calling the fire dept. Bankruptcy is not the end of the world. Sometimes a fresh start is needed. You can always repay creditors you have listed on a bankruptcy once you are back on your feet. Once discharged though, you will have no legal obligation to do so.

I remember seeing Oprah a few months back and ppl were in diffs. But like you, they earned well. Forgive me, but what school costs? Do they HAVE to go to private school?

How else are you trying to save? No meals out is one thing, but it sounds like you’re going to have o go totally bare bones for a couple of months.

To be honest, I only live on about $12,000.00 a year. Granted, I do not have kids or braces or school, and medical bills are not in my picture, but to have 100 grand a year would be absolute BLISS to me.

Its amazing how it happens when u use credit, we all know this now. I would try talking to your bank about a consolidation loan, they will take all your bills (credit cards etc) and consolidate to one lump sum each month, will be less then what you are paying now but all the companies will be payed off and you will just have to pay the bank each month, we got ours with a good rate too so thats helps. I would go talk to the bank. Im not sure about medical(Im in canada) but they might be able to add that in maybe and dental that you owe also.

Stop for a moment and breath. Stop saying should have, could have, would have. None of this will help. Cut up your credit cards, or put them in the freezer, you will never get ahead if you continue to add to the debt. Write down everything you owe on one sheet of paper with payments and interest(smallest to largest, by interest rate).

Then write down how much you need to survive, House(electric, heat,water, insurance, taxes), Food, clothing, medical, now continue with the cable, the phone, the cell phone, transportation (car loans, insurance, plates, maintenance) tuition, etc..what ever you spend. What are the totals. The idea is spend less then you make. Sounds simple enough,’s not.

Before you run to the CCS or lawyer you have to figure out what you owe, secured VS unsecured. What you feel you can pay. With your income you’ll find you will be a chapter 13 BK case, you’ll pay back a certain % amount( they figure this out by doing the above) over 5 years (your 401k loan isn’t dis-chargeable or included in this amount, it will remain separate, school loans are also not dis-chargeable). So fresh start for you would probably start in 5 years.

I suggest you go get a book from the library, Dave Ramsey “Total Money Makeover”, or “Financial Peace”.

There are other authors, but I like how he says things.

It will be okay, there are a lot of people on this site “who have been there done that”, so they can help, they give good support and advice, you get to decide how to use it.