I need suggestions/advice - just don't know what to do - BK or not!!

[bigcreditmess]

I have dragged my feet on this for months. Lost my job in January, and totally threw off my repayment plans on some things.

Still have not found a permanent job, just took a temp job last month.

 

I was going to file CH 7 however the fees were just too much ($1500 average with area attorneys) for not having an income.

Now I'm working but with no benefits and have no idea how long this job will last. With paying for private insurance, daycare, gas, etc it still isn't all that much but it's something! I pretty much let everything except my car payment (it's current!) go.

 

Finally started putting some money together to file Ch 7, until I got the packet from the lawyer of everything needed. My husband (who is NOT filing) does not like that he has to provide his paystubs, taxes and a copy of his vehicle title and other info. He really would like me to figure out another way. A lot of the debt is from my ex-husband that I was stuck with.

 

I have 2 judgments - one from Lendmark, and they tried serving every employer listed on my credit report (3 previous) and then gave up for wage garnishments. It ballooned from a judgment of about $4k to almost $7k now after they tacked on fees, interest, then added more interest on a worksheet with the last wage garnishment request.

One is from a bank for $1200, which is local, and I think I can do payment arrangements with them.

 

I have about 6 charge offs of various credit cards, one was bought by Midland and they filed suit but I was served too late and the case dismissed. I'm sure they'll be back. It was for $680 and I could probably pay that in full to stop a new lawsuit. including that one, about 3 are within time limits to sue. The other 3 are not. I also have 2 very old charge offs getting ready to fall off this year. 3 charge offs medical, which are out of statute of limitations. All total maybe $3k max.

 

I have a Navy Federal Credit card which I had been keeping up on but is now about 90 to 120 days late. They sent me a letter about 2 weeks ago fed ex, that I needed to pay the past due balance or they'd go legal. I think if I call them I can probably work something out. That totals about $6k.

 

Because of my layoff and having a hard time finding work, I have been so incredibly depressed and full of anxiety, so I have done the worst thing I can do - I stuck my head in the sand and did NOTHING. I HAVE to do something. Please give me some suggestions. Is this something I can work out on my own? I know I won't be able to negotiate much with Navy, other than lower payments, and that's fine. That will buy me some time. I know the charge offs sometimes you can negotiate lump sum payments for way less than what is owed - how can I do that the best way? The smaller judgment I can knock that out over time and I don't think they'll pull a wage garnishment and even if they did, it isn't that big of a balance to handle. The bigger judgment is the one that is 'looming'.

 

I'm in the Baltimore/Washington area and this job market is the worst I've seen and I have a degree! I'm confident I will find something permanent soon but I need to do something now. I really need to talk to someone - my family and friends are not much help - and I know you all are beyond knowledgable. Thoughts? Suggestions? HELP!

[Tileguy61]

In my opinion, BK is last option. You have two separate problems that combine to one monster problem. The credit problem isn't going to go away by paying. It doesn't sound like the debt is so big that you can't work it out (as long as you are working). The garnishments are a big issue though because it hurts your ability to control your income/expenses. You need to try and stop those.

 

I would try to attack the debt first to avoid bankruptcy. Then work on the credit issues which will only be made worse by a BK after you work out the debt. I wish I had better advice. Perhaps someone here will chime in. Unfortunately, there are no silver bullets. Good luck.

[bigcreditmess]

Thank you, didn't look at it that way. I really really really don't want to file if I don't have to.

 

One of my friends was somewhat helpful and said what's the worst that happens? The big judgment garnishes you

for 25% - and it gets paid off. They basically budgeted it for you. Of course, there's not much control there.

I've tried asking for a lump sum settlement and got a big fat no. I've asked for monthly payments. Nope. All or nothing.

All or they keep looking for where I work. Hoping for a decent tax refund to use to pay all or most of it off. I think once

that is paid, everything else will seem doable.

[Matti]

It's all circumstantial. BK7 was the best thing for me.

 

It taught me the importance of budgeting and having control of my finances.

 

Prior to my BK, I would max out cards, and pay the minimums, then max them out again. Savings and emergency funds weren't important to me, at the time. Can't afford it?... Finance it! Interest? No big deal, as long as the payments are low enough!

 

My BK7 was in early 2008. Where am I, now? Over $500k in available credit, have a mortgage, my vehicle is a 2015, I have a savings account and I always PIF.

 

IMO, your credit situation isn't "made worse by a BK". There are many here, myself included, that have recovered from a BK, and are better off now than they were before filing.

 

Am I saying go out and file? Not at all. Explore all of your options, first. Use the resources on this board. Utilize the BK as a last resort, after you've exhausted all of your other resources. You may find that BK is the best option for you, and your situation.

 

As with everything in the world of finance and credit... YMMV.

[EarnIt]

Not knowing how stable your

 

I have dragged my feet on this for months. Lost my job in January, and totally threw off my repayment plans on some things.

Still have not found a permanent job, just took a temp job last month.

 

I was going to file CH 7 however the fees were just too much ($1500 average with area attorneys) for not having an income.

Now I'm working but with no benefits and have no idea how long this job will last ...

You have no idea how long your job will last. IMO, you should try to hold onto as much money as possible. Considering that the damage to your credit is already done, let the creditors wait until your employment is more secure before making arrangements. If you make arrangements and then can't follow through, you've "wasted" the money.

BK is never an easy decision. It is rife with emotion and is very personal, you'll have to get past that and look a the hard facts and make the best business/financial decision you can. What is the big picture? How much debt? Once you have a stable job, is it something that can be paid off in a reasonable time frame? How much debt does your husband have? Can it all be managed?

Edited September 30, 2015 by EarnIt

[inoubliable]

In general, I say BK is one big bag of nopes for most people. But then, it does amazing things for others and truly does let them start over.

 

Unemployed for many months, difficulty coming up with even $1500 to file, credit score tanking, depression, and anxiety.....and the hubby doesn't want to hand over some documentation? Good lord.

 

With a temp job and a horrible job market, I worry that you'll get some payment arrangements going and then you'll find yourself in another period of unemployment with no way to keep up on them.

 

I vote BK.

[kweema]

I dont have any input as far as the bk but I live in the DMV area. Send me a PM and I can try and help with your job search.

 

I filed bk because of medical issues, serious under employment and a judgement. It was the best option for me and everything is going much better for me since then. Feels good to be debt free but it sucks that it came to the bk. Good luck with whatever you decide.

[steelers1]

Its so hard to respond to you in an internet post but I will try my best.

 

First of all I am very sorry you are going through all of this.

 

A financial burden is hard enough on its own however if you add a spouse that doesn't get it or want to cooperate that makes everything worse.

 

Only you can answer your own question just try to clear your head and think about it.

 

If you are having trouble coming up with $1,500 for an attorney how hard is it going to be to come up with $17,200 if not more (the amounts you listed in your post) to straighten everything out.

 

In my case....

 

My home was foreclosed on in 2008 due to a loss of business (income). I tried to hold off on filing BK because I thought it was a horrible option.

 

I continued to make partial payments on a second mortgage even though the house was already gone (WHAT AN salamander I WAS) and I also continued to make partial payments to my creditors.

 

FINALLY in the spring of 2014 I threw in the towel and filed BK.

 

The ONLY regtret that I have is that I didn't do it 6 years earlier. I threw alot of money away for nothing because I was just trying to do the right thing.

 

BK will take away the garnishment fear and allow you to think straight and get on the right path IMHO.

 

Talk to your husband and make sure he understand the distress that you are in and you need his help to get through this tough situation.

 

If he doesn't understand that then there are also other things that you need to think about.

 

I WISH YOU WELL

[Sidewinder]

I have about 6 charge offs of various credit cards, one was bought by Midland and they filed suit but I was served too late and the case dismissed. I'm sure they'll be back. It was for $680 and I could probably pay that in full to stop a new lawsuit. including that one, about 3 are within time limits to sue.

 

Can't give any advice re BK; but I'd advise against paying that $680 late. They're not going to sue for $680; their court fees alone would exceed that. Put that $680 toward something more urgent.

[bigcreditmess]

Thanks everyone for the advice. I kind of made my husband sound like a jerk, and didn't mean to do that.

He has no debt except for a $6k vehicle loan, which he'll have paid off by early next year. He hates borrowing

and has one credit card that he pays in full. I didn't ask him for the BK filing money, although if I asked, he would

help me, but I don't think it's fair to ask - like I mentioned before, a lot is from/related to my ex.

 

He's afraid the BK court will come after his money/truck. He doesn't understand how BK works and that's the disconnect.

I need 6 months of his paystubs - but we just got a form to sign up for online paystub info from his company, so he won't have to go

to HR and ask for that. (something he didn't want to do). I have all our tax return copies, so that isn't an issue. Still leaves a copy of

his title, but again, he isn't filing they just want to see that for some reason.

 

I talked to my boss at the company I'm temping for (I temp through a temp/staffing firm) and asked how long I should

expect to temp for them. She told me they just won several new contracts and told me I can stay however long I want,

and there's a possibility of the higher ups offering permanent after 6 months, so this was a good sign.

 

It's been a really hard year. Lost job, they went out of business, couldn't even sign up for Cobra. Hubby's work pays his insurance

but to add me and our daughter was another $900 a month, so I had to do the Healthcare Exchange thing, which was still

almost $300 a month on unemployment. No benefits offered with temping.

 

However...I am VERY thankful to have kept my car payment current, insurance current, food on the table, roof over our heads, daughter still in a good daycare,

clothes on our backs and gas in the tank. So I can't complain too much.

 

We rent from family so we pay way below area

average rent.

 

Hubby's mother owns a second home that she rents out and is looking to sell it next June when the current

renters move out. She's offered it to us at below market price, which my husband can qualify on a mortgage himself and if

we don't want to do that, his mother has offered to hold the mortgage up to 2 years. She is aware I'm considering BK and

that is why she offered. So I don't have housing issues to worry about too much and the new mortgage if we decided to

move, would be about the same as our current rent, so it's affordable.

 

It's a very emotionally hard decision to make and I think I have to take the "emotion" out of it, and step back and look at

it from a practical point of view. Easier said than done!

 

I appreciate the responses. Thank you very much!

[bigcreditmess]

 

I have about 6 charge offs of various credit cards, one was bought by Midland and they filed suit but I was served too late and the case dismissed. I'm sure they'll be back. It was for $680 and I could probably pay that in full to stop a new lawsuit. including that one, about 3 are within time limits to sue.

 

Can't give any advice re BK; but I'd advise against paying that $680 late. They're not going to sue for $680; their court fees alone would exceed that. Put that $680 toward something more urgent.

 

 

They filed suit for exactly $680 with no interest or court costs, but didn't get the service done on time and were given the option to renew service and they didn't.

At time of filing they have to add any extra fees. I guess they could refile and do so. I thought maybe if I just paid it to Midland, it would be done. Then again,

I hear Midland isn't the most ethical debt buyers around (the bought the credit card debt, and included proof with the filing when I was served late).

[pjmaxwellian]

The most-often heard comment from those who have filed BK, myself included, is: "I should have done it sooner."

 

Timing is an important consideration when filing BK. If there is a home purchase in your future, may be best to file sooner, if it comes to that.

 

If you haven't already done so, make appts. with 3-5 BK attorneys, and ask their advice. Most have free initial consults, but ask when you call. Whether you eventually file or not, you can have a good attorney lined up.

[genseeker]

I filed BK7 back on 2007 and I'm in a much better place now. I was still married but my now Ex-hubby was abusive and forced me to cosign a huge vehicle loan even after explaining to him we couldn't afford it. Ruined our credit I worked hard to clean up by maxing out his cc & using mine for online. Since we lived together I couldn't prov I wasn't the one who used them. BK was dxed and I left him.

 

Now although I struggle monthly with bills, its not because of my credit habits, it's because of surviving on just disability income. I'm slowly rebuilding which I know would be faster if I had more income. I'm actually getting things ready to look for a low cost home.

 

According to the ex's brother (only decent one in the family), ex is deep in debt and ruined his credit. He's even conned his parents into co-signing several times & he's burned them. Your DH though sounds nothing like my ex.

 

If you decide to go BK7, peeps here can guide you through filling out the forms and such. I filed mine pro-se in VA & the clerk told me they got a lot of low income people who did it themselves. Clerks can't offer legal advice but they can look at the forms and point out which ones you need depending on what chapter you plan to file and they can also double check to make sure everything is totaled where it needs to be and that the forms are signed.

 

Legal Aid looked over my forms for me for free so that might be an option as well. Fill them out yourself and see if legal aid will look them over.

 

Good luck in whichever path you decide is right for you.