Settle my bankruptcy confusion

This topic has my mind so boggled! I have done my fair share of reading on the bankruptcy topic only to be left more and more confused each time I think I’ve nailed it. While watching the Suze Orman show on Saturday night, a comment was made, and I can’t recall the word for word, but this was the jist of it. If your debt equals your income, you may want to consider filing bankruptcy. *Please correct me if I’m wrong with that interpretation of the show* As hard as it is to grasp, yes, we are hugely in debt. How did it happen, I have no idea. Seems really sad in a odd way that I have no idea where our money went over the last two years. Yes, there was a couple layoffs that ate our savings and now we are left living paycheck to paycheck with nothing to spare. No, we did not plan right after we got married. Yes, we furnished our home, had three kids, bought and sold cars left and right, bought and sold two houses, you know, the typical American family who wanted it all right now and didn’t figure out how to pay for it until it was too late. We were in debt about 25,000.00 a couple years ago. Made a bad decision to take out a home equity loan to pay off that debt. Now two years later, we are worse off than we were before, about three times that to be honest. That my friends is NO way to live. We are, to put it bluntly, pretty much screwed. Now we are left to pick up the pieces and try and figure out where to go from here. We are both 40 with no savings and no retirement plans.

This whole thing is so terribly confusing to me. Do we settle with our credit card companies? Is it even possible to do that with NO savings to pay them off? Do we file bankruptcy and if so, which one? We most definitely can afford our house payments if we didn’t have all this flippin credit card debt. I just filled out an evaluation for assistance form with our mortgage company, so I will be waiting to hear what they come back and tell me. I went to the site that Ms. Suze Orman mentions, and found my mortgage carrier, followed their instructions for assistance and now we just wait to see what our fate will be.

Of course we want to pay our debts back if we can. After all, we got ourselves into this mess, it is our responsibility to get ourselves out of it, I just don’t know how right now. I think bankruptcy is a quick fix, but if it is our only option, we will do it. My husband works so hard at his job (drywall taper/finisher) as it is very labor intensive and many guys don’t last doing this position past 50. With one child left to enter kindergarten this year, my time to work is very limited. I work from home as I have my own business, but unless things start changing, I will have to get a job in the evenings outside of the home which I am totally willing to do.

All the chapters in my life, I never thought I’d have to settle with a 7, 11 or 13!

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2 thoughts on “Settle my bankruptcy confusion


  2. Thank you for the honesty in your reply. I certainly hope that you are never put into a situation as the one we are in currently.

    As for the concert tickets, we had the money to pay for those and putting them on a credit card was a temporary thing because you cannot buy tickets without a credit card. We did end up selling two of the tickets.

    Now the cards have turned again and we are in a different situation than were were two months ago. Since the purchase of those tickets that have already been paid for, my husband lost his job. Just as an FYI, prior to the purchase of those tickets, we hadn’t and haven’t been using our credit cards. We haven’t charged for over 10 months. We have been paying for things we need, by cash and cash only, even during the holiday’s, we only bought things with the cash we had on hand at the time. So you see, we have changed how we handle our money, only the lessons learned were a bit too late and now we are left picking up the pieces. The credit cards are all debts that were acquired for past pleasures, not the present, and as honestly as you stated your comment, I will honestly say that yes we have made mistakes in the PAST which are the ones we are trying to correct now. I have made no excuses for the situation we are in. We created it and it is our responsibility to get out of it. We just have to be the ones to figure out how to do that and what is best for OUR family’s situation. I am merely trying to educate myself on the different levels of bankruptcy. Of course that is an option I am only willing to explore if it is the absolute last resort because as I said, I don’t expect a quick fix and between my husband and I, we will do what we can to get ourselves back on top.

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