looking for advice...

[bobby b]

For the past 4 monthes, I've been paying what I can, when I can. I quit a good paying job to help my brother in his business, thinking that I would make more money and be able to relocate my family to California where I originally grew up. To make a long story short, I screwed up my credit and am a couple of monthes late on the majority of my bills. I have since moved back home with my family and am trying to figure out what I should do next.

I don't own a house, I rent and am up to date on my rent. The majority of my bills are in credit cards and I have a car loan that I do not want to lose. I would appreciate any advice on where to go from here. There is no way that I will be able to catch up with my credit card bills and even if I did, there is no way that I would be able to stay current with them. My debt to income ratio is way out of whack now, hard before, but impossible now. I will be starting a new job here Monday, a lot less than "my good paying" job that I left. I don't know if I should call these credit card companies and explain my situation or make small payments or to file for bankruptcy.

I have figured a budget and I will be just scraping by with just the necessities of putting food on the table and keeping my family with a roof over their heads. My wife just received a couple of "low limit" credit cards, which we used for food and I may use them to pay my phone bill and power bill, but am uncertain of using them now for that.

I don't have anybody to ask, so I thought maybe somebody here could help. I'm embarrassed to talk to family about it, but I did talk to my wife and she wanted me to check into it. We're both tired of living like this, from paycheck to paycheck and now that can't even be done. I am sorry if it seems like I'm blabbering, but I am so confused and don't know which way to turn. Thank you for any advice or help in this matter.

Bobby B

[HRx]

Hi,

If you and your wife have sat down together and did the math, and determined, that it would take you both more than five years to pay off your "credit card" debts. And concluded that attempting to pay off your debts will only result in accruing additional debt. Your best solution will most likely be a Chp 7 bankruptcy. But keep in mind that unless you all curtail your fiscal habits, you can easily find yourselves up to your ears in debt again in the blink of an eye.

Good Luck!

[bobby b]

Thank you Todd for your reply. The wife and I have discussed our finances and bankruptcy seems like the only alternative. I just don't want to lose my car, it's our only means of transportation at the moment.

I would like to start fresh again, even if we don't have any credit or bad credit. I just don't see any other alternative at the moment.

Thanks again,
Bobby

[HRx]

Thank you Todd for your reply. The wife and I have discussed our finances and bankruptcy seems like the only alternative. I just don't want to lose my car, it's our only means of transportation at the moment.

I would like to start fresh again, even if we don't have any credit or bad credit. I just don't see any other alternative at the moment.

Thanks again,
Bobby

Contact the lein holder and inquery about the likelihood of having your car reaffirmed, under your chp 7. This will enable you to keep your vehicle.

Good Luck!

[bobby b]

Thanks again Todd, the only thing that scares me is that we have a credit card with these people that have our car loan too. If it is our only means of transportation, can they take it? I plan to keep paying off the loan, but don't want to throw any red flags their way at the moment. I know the balance of our loan is more than what the car is worth, but I would still like to keep it.

Thanks again,
Bobby

[robivi3]

I have a Mortgage with Chase. I also had Chase Platinum Visa which i wrote off for $12,000.00. They were aware of both accounts being for the same person. I had no trouble reaffirming the mortgage.