Considering as I have no options

[dmc-2008]

I have about 70K in unsecured debt, part of that is a second on my condo. I have another 26K in student loan. I have lots of debt I have incurred.

I am 48 and have a 9 year old. How in the world am I going to get ahead with this debt. I have been trying to be frugal, but at a crawl.

My credit score is way up as I am still on time, but the debt load is killing me.

I can't refi, debt to income to high and not enough equiity.

What would you do?????

[justplaintired]

Personally I would call a few attorneys and find out what they recommend. The first consult should be free, and they can explain your options and tell you what Chapter you would fall in. This will help you make a decision. Sinking in debt is why most of us are here and we know how much stress it can cause. Sit back, take a deep breath and find a few attorneys to meet with.

Good luck!

[dmc-2008]

THanks JustPlain.

I am tired too. How long would it take to get out of 90K in debt. At my age, I think too darn long.

I would be willing to try, but I think it is causing stress which is causing illness!

I want to cut them up and never have another debt !!!

Ugh.

[deafbroke]

Personally, my wife and I had a combonation of about 50K in debt, along with our mortgage and living paycheck to paycheck. We got behind when I had my hours cut back for 3 months and borrowed from our Credit Union to make up for it. Eventually we couldn't keep uo with the increase in credit card payments, increase in adjustable line of credit payments on house, and tried using a debt resolution service to negotiate a lower payoff and pay creditors off. Result was small balances of about 3k or lower were cool with the debt resolution idea but balances abouve that played hardball. Half our creditors were paid off from the debt resolution service. Once those smaller balances were done, the bigger ones wouldn't recognize the debt resolutuion service acting on our behalf even though we signed a power of attorney allowing them to negotiate the debts. One credit card company ended up garnishing my wages and then the rest simply followed suit and tried taking me to court. End result is I had to file chapter 7 and am in the process of that.

From experience I would say in your position I wouldn't waste time with debt consilidation or debt resolutuion. Just decide whether you want to file chapter 7 or 13 and even then you would have to take a means test to see which one you qualify for. It's not worth thr hassle of negotiating with the creditors as it only takes one hardass creditor to screw it all up, then the sharks start circling.

Although bankruptcy is frowned upon by many it's there to help people get a fresh start and get out from a situation that would otherwise totally consume them.

It's just my opinion but the sooner you file the sooner you'll get a new lease on life.

FWIW.

DB

[dmc-2008]

Thank you so much DeaFBroke! I am glad you told me about the debt service. I was thinking maybe....

But then again, it does seem like just a prolonged agony.

I have a friend who knows an BK/Family atty here and I am going to call her tomorrow.

hey, I have been reading about a "means test". Can you send me a link. Also, what is a trustee.

thanks much!

[deafbroke]

When you file bankruptcy you will have to take a means test if you are over a median income. your atty will walk you through it all. basically if you have to take a means test you are over the median income for your family size and the means test goes into detail about your income and expenses and determines if you can file chapter 7 or 13. Again your attorney will explain it al lto you and take you through it step by step.


A trustee is usually an attorney hired by the bankruptcy court to oversee your bankruptcy case. The trustee will look at your petition you fill out with your attorney, asks you questions in a 341 meeting you iwll have with him/her and then will determine a course of action on your case based on how your paperwork was filled out in your petition. The trustee acts on the ceditors behalf to collect as much assets as possible to distrribute among al lthe creditors in your case. If you have no assets the creditors get nothing. Lately the trustees are going after any state or federal income tax refunds along with the stimulus checks. Be sure your attorney exempts those. I didn't and now i'm going through ammending my filing to correct the mistake otherwise I am out $2500. The trustee may come across as being very nice and friendly but they will go after any assets and any mistakes in your filing so make sure your attorney on the ball.

DB