[Mbell1960]

We are in a lot of debt, over $200,000 and our income has dropped to about $21,000 a year. We are looking for additional work but have yet to find any, my husband has taken on a school bus drivers job to provide us with health insurance.

Our debt is about 2 years old (March was 2 years) and we have not filed for bankruptsy and have not been able to pay on this debt either, we can bairly pay our bils. The problem and why we did not file was we live in a home that we only own 1/3, it was my mother-n-laws and they do not charge us anything to live here except the taxes and the upkeep. We were afraid we would lose this house if we filed. Also, I have a family turst that I have no access to which is mostly land but it caused too much assets on my side.

We can't seem to move forward because of this large debt, it has hurt our chances with many jobs, what do we do, who do we turn to? We don't have money for attorney fees.

This is eating me alive!

[JudyKayTee]

What is the bulk of your debt? Credit cards, personal loans? Some creditors are easier to deal with than others.

The fact that you have a trust does not mean you can't file in bankruptcy. You can still file but that asset gets turned over to the creditors.

With the income/debt ratio, I don't see that you have a lot of choices here.

[I wish]

I'm not sure how you spend so much money, but first thing you have to do is review the money that you spend to reduce your expenses.

Secondly, continue your hunt for additional jobs to increase your income. Consider changing jobs if you find a job with higher pay.

Thirdly, if you have credit card debts, you should consider borrowing from the bank or some other financial institution that has a lower interest rate. That will reduce your monthly interest burden and more money can be used to pay off your capital.

Another option is to borrow from close family members who might have extra money. That way you can hopefully get an interest free loan.

Otherwise, if you can't handle it, you will eventually have to declare bankruptcy.

[twinkiedooter]

You need to consult with a bankruptcy attorney about this problem. A lot of them give free consultations. You need to be upfront and honest with the attorney so he can help you figure out the best solution for you.

If this was medical bills I can well understand.