Monday, December 6, 2021

I Don’t Want to File Bankruptcy Again But I’m in Debt Trouble


Dear Steve,

I’ve gone bankrupt two times, which is not on my credit report and not an option this time.

I have too many revolving credit accounts with balances that I have not paid for four years. FICO scores are 510 and below. With four in collections and four judgments.

I have been to your seminars in the past. However, I am in a different dilemma since I have not paid my accounts since 2017.

I tried to get a secured card online and failed. It probably was a mistake. Since I had Almagated before, I thought they would help me again.

I need good credit to find a home. I have a new job ( 2 months) and make approximately 30,000 or less a year.

I highly value your information, and now what you say works. Please help. Thank you

Should I use Allen Micheal again? Which revolving accounts to pay? Will paying the revolving help my Credit score.


Damon Day - Pro Debt Coach


Dear Sherri,

Thank you for the trust in asking me a question yet again.

I understand you have filed for bankruptcy previously, but I’m not convinced it is something to be excluded for an emotional reason.

Bankruptcy is a legal tool to eliminate debt you can’t reasonably or possibly afford to pay given a set of circumstances. A Chapter 7 bankruptcy eliminates your debt in 90 to 120 days and gives you a fresh start. Read Those That File Bankruptcy Do Better Than Those That Don’t.

The issue here is not that you previously filed bankruptcy but that you were extended credit that, for whatever reason, you are unable to pay. The collections and judgments are an indication this has been going on for some time. Plus, you say you have not paid on your accounts since 2017.

Given your annual income and the amount of debt, I don’t think any solution would be more appropriate than filing bankruptcy.

You can have substantially better credit within a year of filing bankruptcy. Read my guide here.

You seem to want to resolve your situation quickly to buy a home, and without paying the debt off in full right now, I’m not convinced bankruptcy isn’t the right solution to investigate first to achieve your goals best.

I would strongly suggest you find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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