I’m drowning in debt, somewhere between $71k and $86k, and it’s been a rollercoaster. Last year, my son was diagnosed with a brain tumor in August 2023, and I dropped everything to be with him. I stopped paying my bills, including my mortgage (caught up recently). I lost my job and spent nearly six months living in the hospital with him. Now we’re back home, but the debt piled up fast—around $80k in total.
One credit card company (Citibank through Best Buy) is suing me, and someone tried to serve me papers yesterday, but I wasn’t home. I spoke to them through my Ring cam. I’ve been in and out of jobs—got one in March, lost it in August, and picked up another in September only to lose that too. Now, I’ve got a job at a flooring company, but it’s not something I’ve ever done before, and honestly, I feel like I’m barely hanging on.
As for the debt breakdown, most of it is credit cards, with one Citibank account disappearing from my credit report (it was charged off). I’ve never filed for bankruptcy, settled debt, or disputed it. I’m just at a loss—should I file for bankruptcy, hire a lawyer, or try to settle this mess? Ignoring it doesn’t seem like an option, especially since I feel like more lawsuits are around the corner.
Jaden said:
Taking unemployment while working might cause legal trouble. You might end up having to repay that.
You should see a lawyer. Bankruptcy could be the only way forward for you.
I know, and I feel terrible about it. That’s why I’m considering bankruptcy—I don’t want to be on the wrong side of things. I’ve always paid my bills, and this situation feels overwhelming. I can’t even vent properly because my child might overhear, and I don’t want to burden him with my stress.
@Adi
You did what you had to do for your child. Forget the financial system—focus on fixing this. Talk to a bankruptcy lawyer. You can exclude your home and primary vehicle from the filing. It’ll take a few years to recover, but you will bounce back.
@Aza
Thank you so much for your advice. I really appreciate it. I’ve set up a meeting with a debt lawyer on Tuesday morning. Hopefully, they handle bankruptcies too.
How much of the debt is from medical bills versus credit cards?
What state are you in?
All of the debt is credit cards. When I started maxing out my cards, I asked for help from the hospital’s billing department and applied for Medicaid. Initially, I was denied, but three weeks later, I was approved. Medicaid covered the hospital bills except for what I’d already paid, which left me with $85k in credit card debt. The total hospital bill was around $415k, but Medicaid took care of most of it.
@Adi
Got it. What’s your household income right now?
What’s your home equity?
Depending on your state, income, and home equity, you might or might not qualify for Chapter 7 bankruptcy while keeping your home. Let us know more so we can guide you better.
@Kim
Also, in some states, disability income can’t be garnished, so that might protect you if you’re on disability. Creditors might place a lien on your house, but they can’t force you to sell it.
You’ll need to make less than $50-70k to qualify for Chapter 7. $85k sounds overwhelming, but there are ways to tackle it. Let’s get more details to figure this out.
Kendall said:
Do you have any family members who can help? Sometimes family can step in and provide support.
My parents are struggling themselves and still care for my younger sister, who has Down syndrome. I can’t ask them for help—it’d feel wrong. They’re down to one car now because my dad’s truck broke down. I can’t imagine them having much savings left.
Kendall said: @Adi
What about extended family? Maybe someone else could step in?
Unfortunately, my mom has isolated us from my dad’s side of the family over personal issues, and I haven’t spoken to them. I don’t hold anything against them, but they’ve never reached out either. My mom’s side is involved in some illegal stuff, and I don’t want to go near that. Asking them for help would open doors to more trouble, and I can’t deal with that right now.