I am over my head with unsecured debt, have been keeping up with minimum payments through a since empty savings account.

Q: I am unemployed…no income. Also have a secured home equity loan that is current, but I only took a partial loan out…I have probably $80,000.00 in remaining equity that I can’t get to because of debt, and no income. I have no family, and would have no place to live. I have a paid off vehicle, but need that to find employment. Should I maybe just try to pay the secured debt and not the unsecured debt? I would have no place to go if they took my house…and how long before they would take my house? I am ready to park on a railroad track! What can I do?

A: Sorry to hear about your predicament. First thing first and that is to make a plan of attack. Plan on attacking one thing at a time and things won’t seem so overwhelming. Make an appointment with a bankruptcy attorney in your area. Just because you make an appointment with a bankruptcy attorney doesn’t mean that you have to file bankruptcy. There are many debt relief options available to you and an experienced bankruptcy attorney will review those options with you.

Many bankruptcy lawyers offer free initial consultations and can be a great help to you as they will provide you with the answers and possible solutions to your current financial problems. Don’t guess at what you should do, seek the help of a professional and take it one thing at a time. There is a debt relief option for everyone, the key is to pick the path to a “fresh start” that is best for you.

* You and I do not have an attorney-client relationship formed by our communications on this website. Advice given by me on this website is general advice based on partial information. You should not rely on any advice given without first hiring a lawyer in the area where the case is pending, and providing that lawyer with full information.

Answered by:

The Bornmann Law Group
20325 N. 51st Ave. Ste #134
Glendale, Arizona 85392
Office: (623) 640-4945

Evan Bornmann, Glendale Chapter 7 and Chapter 13 Attorney.
Re-Posted from AVVO Legal Questions and Answers.