Pretty Quiet Now

[treehugger1]

After surviving several months of wage garnishment, I have a break. There is still one local creditor that I owe $3+ K to, but they have not filed small claims or suit. Not sure what is up with that. Other national creditors have either agreed to payment plans or assigned my debt or sold my debt. I have DV'd all of them. Not a word or suit from any of them. Is this unusual? Some of these accounts are now 17 months since original default. Pretty weird. Pretty quiet. I still budget for a 25% wage garnishment, but when it doesn't happen I pay off other debts; not that I'm complaining. Is this perhaps a calm before the storm, or is the economy so bad that the CA's and creditor's are going after newer "ripe" fruit, rather than rotten fruit?

[AngelinaCatHub]

LOL Treehugger. You make me want to waste paper and burn forests with that one. That being said, don't wish yourself into a stew. Have you or are you going to file bk?

In any case, bk would have stopped the garnishment. Hope you feel a bit of relief. You cannot get a "hamster dance" if you are not bked. LOL 'Hub

[treehugger1]

well, you know, the "name" is misleading, having spent 1/2 of my life as a logger. But, I've learned. LOL

As far as Bk is concerned, I'm sure its in the future. But, given my needs to address a very sick father and daughter, the BK 13 trustee's approach to siphoning off my finances would leave very little to help them when called upon. Let alone, the problem of gaining interest on $65K of student loans at 8+% interest is too hard to swallow. I'm still waiting for our regional trustee to "qualify" my student loans as a priority debt ($650/month) and thus subtract them from disposable income. I have high hopes with the new Congress and National administration. LOL

If you think the unsecured credit debt is bad, just wait until the next step involves more folks defaulting on student loans. Especially those folks who are in a 25% garnishment state. The Dept of Education can get 15% of disposable income (WITHOUT A COURT ORDER). That only leaves 10% for the other folks waiting in line. I think the default time to potential student loan wage garnishment is 270 days. I may test this and offer up my expereince in the future. LOL

Seriously, the student loan issue is a big problem in my case. You can go find a calculator and add up $4K BK 13 attorney fees, 10% trustee take on $60K (about) unsecured debt in a 100% payback plan (6K), and the compounded interest at 8% for five years of student loans (30K.) A total of $40K to "get rid" of 60K in unsecured and still have the giant student loan payments at the end of five years. I can hang in there for a bit longer.

Eventually, I'll retire and draw my $30K pension and file a BK 7 if necessary. Hell, I never thought it would be possible to get through 90 days of non-payment of unsecured debt. Now, here it is almost two years on some of it. I am fortunate!