Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
Hi everyone-Well, after being out of work since last May, I finally found a job working at a day care center. It is very difficult for me because I have lupus, fibro. and DDD. But it was the first job offer I had in all that time, so I took it. I also will get medical benefits, which will be less than what I've been paying for COBRA. I need it because of the above diseases I also have breast cancer, incurable, but hopefully kept under control. Anyway, what I am making is a bit less than I was making from unemployment, so I'm still really worried. I was not able to pay my house taxes last Dec.,and will not be able to pay them in this May when the total amount is due. I've been trying to send them $100 a month, but that is nowhere near what I owe. I've been trying to do the same with all my bills, especially oil, which they say they will not deliver any more until I pay my bill, which over the winter has been quite a bit, even though my heat never went above 55. I've done everything I could do to conserve money, but its not enough. I also am paying on college loans that I cosigned for my kids, who also have been having tough times getting jobs. I just feel so overwhelmed-never thought I'd be in this situation, but here I am. Does anyone have any suggestions for me? Should I file for bankruptcy, or is there something else I can do? I really need your help, so thanks in advance, and God Bless.
Kathy
Kathy
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My 6mo twin DD's are EBF and just started rice cereal on the first. Everything has been going fine except this morning one of them had a diaper rash (lots of redness around her anus). I read this as one of the signs of an allergy. BUT I did just buy a different brand diaper yesterday (which they have used randomly before w/no issues). Do you think its the cereal or the diaper? Im ready to start...
I feel deeply for your situation and wish you every helping hand to go forward. There is something that you should keep in mind before considering to file for bankruptcy.
1) Firstly talk to your creditors, it doesn't matter who they are just make sure your talking to them. Don't become an ostrich, they will always be there when you take your head out of the sand.
2) When talking to them slip into conversation that if you can not come to an arrangement with them over the debt, then you will have no choice but to declare yourself bankrupt. (This sometimes gets them to sit and listen to you more seriously, even if it was just words)
3) Get a pen and paper and work out what you have left at the end of every month before you pay any debts. Draw a line down the page and list your debt amounts down the left in ascending order from the greatest amount.
4) Then work out out of how much you have you can afford, what % that takes from your balance and work your way down the list until you have used up the entire balance of your money.
5) Talk to each and every one of them and just say that this is how much YOU CAN afford right now, and if they will accept this over an agreed period then you will pay them, but if they disagree then you advise that they will be contacted shortly by A Bankruptcy Specialist to confirm amounts owed for when your case goes to court.
You do not need to contact the bankruptcy people, but give your debtors a shot of what it is like in the real world and see if you can get them to play into your way of thinking.
Bankruptcy even though only lasts for 12 months in most cases, can stay with you for between 5-7years. This will mean that you can not even have a contract mobile phone, let alone a bank card or credit card or finance for whatever reason.
Try firstly with your largest debtor, and if that does not work then try a little pressure, again if that fails then I am afraid that you may have to take some legal advice from a specialist or service who are up to speed with what the situation is right now as regard to bankruptcy.
Rule of thumb is that if you are above 25-30,000 in debt then bankruptcy may be the only option. But seek advice before you make and rash decisions.
I wish you every luck for the future.
Darren
Maybe some of this can help you to avoid bankruptcy. Also the advice abouve about talking to your creditors is good advice.
I hope you are feeling well today and I will keep you in my thoughts. Take care.
1. Elimination of all unsecured debt.
2. You do NOT lose all of your credit scoring but it will take a huge hit. I went from a credit score of 680 to 430.
3. You can still get loans after bankruptcy. I haven't even received my discharge of debt letter and had to get a loan to pay for my car that had its transmission go out during that time. I had nearly everything go wrong with my car and had to pay nearly $3600.00. I received an approval and am already repairing my credit. I was able to get a loan and now pay $126.00 a month and the interest is not sky high as people told me that it would be.
4. You will get offers immediately in the mail for credit card, auto loans and so on. I refused to get a new credit card as they are partly to blame for my huge debt that I accumulated.
5. You get creditors off of your back immediately.
6. I can refinance my home in 6 months and get a decent interest rate. Even my mortgage company seeing my trouble was offering help by lowering my payments and interests.
7. Very often, the people that sold you your car will ask you to reaffirm your loan agreement and that is when you can ask for a lower payment and they most often agree. (chapter 7)
Are there any negative consequences of bankruptcy? Yes, but you have to weigh them out first.
If you go to file bankruptcy then here are my recommendations:
1. Do not tell your credit card companies that you are filing. My wife did that and they tried taking action immediately, and we ended up having a sheriff show up at our house with a summons to appear in court. Always call your credit card company or answer the phone and tell them that you are working on getting them a payment. The moment they think you are blowing them off is when they might come after you. Chase seems quick to take action against you. WHATEVER YOU DO, DO NOT USE ANY CREDIT CARDS AT ALL DURING THIS TIME!!! IF YOU HAVE MADE A $2000.00 PURCHASE RECENTLY THEN FILING WILL BE EXTREMELY DIFFICULT AS YOUR CREDIT CARD COMPANY WILL FIGHT YOU IN COURT.
2. Keep all credit card statements. You will have to fill out a form that requires you to write down every creditor that states how much you owe them as well as their name and address. This also goes for secured credit such as a car or house payment.
3. Keep a list of all of your receipts. You will have to do a means test. They want to know how much you pay a baby sitter a month, groceries per month, electric bill, charity, gas bill, gasoline bill, laundry supplies, household projects or cleaners and so on.
4. Have a copy of your previous year tax forms.
5. If filing for chapter 7, be sure to list everything down about what you have in your property that they can possible seize. This scares people but the courts are only looking for any recent HUGE purchases or any boats, extra cars and so on. If you have a lot of equity then they might go after that. I did not lose a single thing and most people don't. If you have 3 cars that are yours personally then be prepared to lose 2. You are allowed a car and so is your spouse, but they will take away an extra vehicle that you might have that you have for leisure.
The above information will make filling out forms a breeze. Also, find a good attorney. All my fees were required upfront. I had to pay a total of $2600.00 before my lawyer could file with the courts. That was the only hard part for me.
Going to court was a joke. My poor wife was scared to death when the whole process was quick and easy. You have the meeting of creditors. My lawyer said that your creditors almost never show up to ask you questions and they didn't at mine. You simply sit in a room with your lawyer and the Trustee who asks a bunch of simple questions that are recorded (Chapter 7). You are first sworn in and then you answer a series of simple questions. One of those questions is if you want to keep your property because now is your chance to be able to walk away from it if you like.
There are 2 online courses that I had to take. The first one lasted about an hour. Basically, it teaches you about managing money if my memory serves me correctly. There was a 10 question test at the beginning to test your knowledge and then the same 10 question test at the end to make sure you learned something. Once the meeting of creditors is done then you have to take another online course that is a bit longer. It took me about an hour and a half to complete. It too had about 10 questions in the beginning and then the same 10 questions at the end.
It's not so bad. Only a bad lawyer can make it bad. Find out the costs and how long before your case can be filed. If your lawyer says that it will take a while to file then find a new one. My lawyer filed the second he received the money.
It is not a lot of money. But I hope it can help you somehow.
I am from Hong Kong, where bankruptcy is like a criminal record that can affect a person for the rest of his life. So I am shocked to know that Americans can get loan even before the bankruptcy period is over. This is not healthy at all.
As for your health, please stop worrying too much. Worry will make your body worse. Just remember that this, too, shall pass.
There are parents who pay US$30 an hour to hire a white people, maybe a French, to teach their kids English conversation in Hong Kong. On the other hand, there are struggling Americans who cannot even pay for the bills. It is ridiculous.
I think the reason why Americans have such a hard time finding jobs is that many low skill jobs have been outsourced to other countries. So there are much more workers than job vacancy.