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I do best answering questions that are related to careers, marriage, children, dating and other interpersonal matters.

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Help me decide what to do. I have no assets except a beat up van. I’m renting to own a rundown house that needs over $30K in work- new roof, new plumbing, new flooring (seriously the floors are currently particle board and luan). I have two girls, 14 and 13. I have over $24K in credit card debt from my divorce/ ex-husband. The payment on this debt is $600 a month. Although I only make $2000 a month, I worked very hard for two years to build my credit so that I could buy this beat up house. My plan was to take out a home equity loan to pay off my credit card and fix up my house. Everything was lined up and I was going to close on my house. Then my plant closed and I am out of a job so I’m out of a job and can’t a loan.

My question is should I keep paying my credit card bill even though I’ll never be able to get another house loan for at least two years? Right now we can afford anything. No field trips, no new clothes, no school annuals, no cable or cell phones. We have nothing. My thoughts right now are to stop paying the credit card bills and get a nice apartment. I want my girls to at least have a few nice things while they are in high school. They only have a few years school left. Right now, they can’t even have a sleep over because the house is so run down. At least if I use that extra $600 a month I don’t pay towards credit card bills, they can go to a movie, have cell phone, get a school annual, go on field trips… do the things normal kids do. When they are grown and out of the house, I can try to rebuild my credit and get a house for my grandchildren. But right now I’m so tired of having nothing and being embarrassed because my girls don’t have anything either. They really don’t. Any words of wisdom?

Dear Mother,

You and your children are in an impossible situation. With no job, your plan to pay off your debt and repair the house is no longer an option.

As a matter of necessity, you should stop making payments on your debt as well as payments on the house and conserve your money for the physical necessities which include securing a livable apartment and paying an attorney to file bankruptcy for you.

This is neither shameful or the end of the world. Bankruptcy is for those in situation such as you find yourself in now. It will provide a new beginning for you and the children which will probably make life much better all around.

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(Rating: 5) Thank you. I didn't know how to submit feedback earlier so I sent you the question. Your advice is wonderful and I appreciate it. I will look into bankruptcy.
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