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    #1

    Not Sure What To Do?

    I am new here and find myself in a strange, uncomfortable situation. Until recent months I was moving along fine and pretty much kept up on all my debt. My wife lost work, incoming money is down, and now for a couple of months now, I am 30 -60 days past due on some credit cards.

    The phone calls are a coming and I haven't been either to pay some at all, or some in full. Ironically, I am within 30 days of receiving a large sum of money that will allow me to catch up and hopefully get my ship righted, as my wife also went back to work TODAY.

    How long can I ride things out with most credit card companies, Chase and B of A to be exact, before I pass the point of no return? Again, I have made small payments on the accounts, but not enough to stop them from calling and being past due. Am I wasting money sending small payments?

    How much longer can I hang on before they would start collections or even a lawsuit? I don't want to even think about a BK since I know there is a financial solution on the horizon soon.

    Advice is welcome and appreciated.
    Tags: None
    #2
    I know they are harassing you now, but it costs them money to file lawsuits so most won't start to get too aggressive seeking judgements for a while. If you are sure you will be getting money in 30 days, and plan to use it to catch up, tell your creditors this. They might wait a month or so before bombarding you with calls again, who knows? But I think you will be fine as far as lawsuits for 3-6 months at least. If they send the debts to collections, this may even work to your benefit in the end if the debt collectors are willing to do a settlement for less than the originally owed amount, something the original creditors won't do.
    Filed CH 13 September 17, 2007
    Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!

    Comment

      #3
      In my opinion, I wouldn't tell your creditors about any sum of money you may be receiving. For now, tell them the situation about your loss of income and tell them you're doing the best you can. If you're doing a little, that's better than nothing at all and looks better for you.

      I agree with woeisme that you won't get dragged into court "tomorrow".
      Bankruptcy History:
      Chapter 7 filed - 10/12/2005 - Asset
      Discharged - 02/16/2006
      Case Closed - 11/08/2007

      A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

      All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

      Comment

        #4
        fanatic,

        I want to comment on something you said--because I have said the same thing and I'm now thinking that it is not correct. This is NOT criticism. It is talking out loud. I am close to filing for bk and I am trying to learn how I got into this mess.

        Well, you said something to the effect of "I was moving along fine" before this current crisis. Well, can I offer you a different view? Being up on minimum debt payments is NOT going along "fine." Going along fine would be if we had savings to cover, say, 6 months or a year of debt payments even if we lost work. That is what all the financial advisors recommend, and I fear you are defining "fine" way too too low. In fact, it is possible that while you were making minimum payments, you were right on the danger line. You just didn't see it that way, but you were ...

        Now again, this is only a thinking out loud exercise, as I have done the same thing and I am trying to reprogram my brain to figure out what is financially "fine" and what is not. But again, being able to make minimum monthly payments on debt is not swimming along fine ....

        Anyway, I hope the big money comes in for you ... By the way, you don't say how much debt you have. That would help us give you a better response ...

        Good luck.

        Comment

          #5
          Thanks for everyone's input. Yes, it is true that I was staying on cue with payments, but wasn't picking up ground.. so I would agree, I was toeing a fine line.

          I am in debt about 18K to B of A and about 15k to Chase.

          Comment

            #6
            Hmmmm.......good points PhillyMan. I never thought of it that way. I guess "going along fine" in some people's mind means "As long as I'm paying the bill and I'm never late."
            Bankruptcy History:
            Chapter 7 filed - 10/12/2005 - Asset
            Discharged - 02/16/2006
            Case Closed - 11/08/2007

            A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

            All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

            Comment

              #7
              Originally posted by BassBoy View Post
              I guess "going along fine" in some people's mind means "As long as I'm paying the bill and I'm never late."
              Amen, BassBoy. One lost job and we were forced to recognize the truth: We were so not fine.
              07/23/2008 ~ CH 13 filed
              09/09/2008 ~ 341 meeting
              10/14/2008 ~ Confirmed

              Comment

                #8
                Originally posted by Pugbug View Post
                Amen, BassBoy. One lost job and we were forced to recognize the truth: We were so not fine.

                Amen BassBoy and PugBug...and a good point for the OP...it just takes shift in the comfortable to allow the reality to hit...You were granted a warning shot - now you know what can happen with big debt and a loss of income...
                _________________________________________
                Filed 5 Year Chapter 13: April 2002
                Early Buy-Out: April 2006
                Discharge: August 2006
                "A credit card is a snake in your pocket"

                Comment

                  #9
                  Originally posted by Phillymanhere View Post
                  Well, you said something to the effect of "I was moving along fine" before this current crisis. Well, can I offer you a different view? Being up on minimum debt payments is NOT going along "fine." Going along fine would be if we had savings to cover, say, 6 months or a year of debt payments even if we lost work. That is what all the financial advisors recommend, and I fear you are defining "fine" way too too low. In fact, it is possible that while you were making minimum payments, you were right on the danger line. You just didn't see it that way, but you were ...

                  Now again, this is only a thinking out loud exercise, as I have done the same thing and I am trying to reprogram my brain to figure out what is financially "fine" and what is not. But again, being able to make minimum monthly payments on debt is not swimming along fine .... Good luck.
                  WOW, Phillyman, thank you for this perspective.. everyone should take note.

                  My definition of moving along fine: shuffling CC's to CC's and charging groceries -- not realizing we were going $1,500 - $2,000 in the hole every month. I had it in my head that our living expenses should be about $700/ month for the 5 of us.
                  "You can never get enough of what you don't need to make you happy."
                  6/16/08: Attorney approached lenders to surrender old home
                  8/26/08: Met w/attorney RE: filing BK
                  9/29/08: Filing Chapter 7

                  Comment

                    #10
                    Great Perspective Phillyman.

                    I stopped paying most bills almost a year ago. I still struggled to pay some and didn't really give up until shortly before Xmas. Fi Fi Fo Fum, I should be filed this week but am beginning to get pissed off at my laywer--but that's another thread.

                    Anyway, I still have no savings though that's in my plans. However, I have been able to afford (with cash) things like a swamp cooler so my cats don't die in the heat, new work shoes (because I wore them down to the bare rubber) and new towels (which I hadn't purchased in 10 years).

                    I have a few more small purchase goals (I really still need a new mattress and box springs badly) but would say I am moving along fine. I am starting to afford the essentials without having to worry about my rent check bouncing.

                    Things are more fine than they were a year ago when I actually thought that they were. Things will get finer still.

                    ep
                    California Bankruptcy Central

                    Comment

                      #11
                      One thing to consider with your large sum of money coming in. Is to maybe think about doing a debt settlement with your credit cards. In a blink of an eye, they will settle for 50% on the dollar,and if you hammer them I have gotten some to go 20% to 30% on the dollar. And yes, there are some ramifications, possible 1099's etc. but I have done many debt settlements for clients and it is rare to get 1099'ed and Chase, B of A, Wamu have been laying down pretty fast when I threaten BK.

                      Good Luck
                      Disclaimer: I am not an actor on TV, but I play a BK Paralegal in real life. Nothing I say should be construed as legal advice, or really anything but entertainment. Please seek out professional help.

                      Comment

                        #12
                        Good idea BKP. In my opinion, if one can avoid BK, that's much better. Bankruptcy should be the last resort.
                        Bankruptcy History:
                        Chapter 7 filed - 10/12/2005 - Asset
                        Discharged - 02/16/2006
                        Case Closed - 11/08/2007

                        A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

                        All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

                        Comment

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