feeling helpless

[momto2boys]

Hi everyone

I just now found this site and I am so thankful for that. I am in a HUGE financial mess and honestly do not know what to do.

It started last year in August. Up to that point I had rebuilt my credit ( have never filed bankruptcy, just had horrible credit ) I kept getting credit card offers. I had a $5,000 Bank of America ( use to be Fleet ), a $2,000 bank of america credit card, $1,000 Menards credit card, an American Express which I had $400 charged on, and a $500 amazon credit card. Over a period of a year 1/2 I had maxed out all credit cards, but managed to pay the minimum every month without any problems. I bought my children clothing, bought groceries with them, put alot of it towards our home. I had ALL intentions of paying it back. The payments got so high that I was paying a minimum, and then when I got a little bit of a balance left I would use it to buy groceries because I could not afford to buy groceries and pay for all of the bills. One month I missed all 4 payments, then the late payment fee & over the limit fee's came. I lost all control that month & have never been able to do anything about it since.

I have not paid any of these bills since August. I contacted Consumer Credit to see if they could help me, and I would have to pay $350 month, almost what the minimums on the credit cards would have been. I had to decline, I could not afford to pay that amount because my hours had been cut way down.

I called & checked out Bankrupcy right before the laws changed. I almost went that route, but decided that it was not worth the horrible mark on my credit report. Now I wish I had done it because I am in a MUCH worse place right now.

Bank of America got my work number & started calling. My workplace does not allow personal calls because I am a cashier at a grocery store. They called 4X in one week. I finally called them and they tell me that it was good that I called because they were ready to charge off the account. I told her to make them STOP calling me at work & she said they would note that on my account . I agreed to pay almost $150 per month for both accounts and I have to do this for one full year or else the hardship program would not be in effect ( if I am late for any payments ). The phone calls have continued at work & they are getting annoyed. I feel helpless.

Tonight I get a message on my answering maching from a law office sayting I have to call them tonight NO MATTER WHAT I am so afraid to call them! What can they do to me??

I want to file bankruptcy but I was told it is so hard to do it now that the laws have changed. I dont know if anyone will accept a settlement or not ( not that I can pay it in full ). What are my options? I am so afraid to answer my phone. I try to avoid it because of the shame I feel. I once had good credit.

If I file it will be in the paper. We live in a small town and everyone will know. Our house is being threatened to be foreclosed on, and we got a shut off notice from our electric company tonight. It is bad, real bad. We are going to save the house, and try to get electric paid, but the other stuff is really scaring me

Any idea's? Thanks for listening, and sorry this is so long.

[jblair]

Sorry you are going through financial hardships.....However, each and every one of our situations are so different but yet so similiar. Sounds like you are experiencing exactly what i have been through and i waited years to file BK, i wished i would have done it sooner. The amount of stress lifted off of you is enormous and well worth it. I personally feel you have a better chance of filing Bk and restoring your credit quicker than going through those consumer creidit agencies or even Chapter 13. Unfortunately with the new laws, you will need to see if you qualify to file a Chapter 7. Means Test! I've been where you are and dealt with hiding/avoiding phone calls, not responded to lawyers threats etc. Consult and attorney...discuss your options, some even will offer you a pymt plan, and by the time you got the attorney paid off, you would be protected by Bk laws from harrassment from creditors. Good Luck, hope this helps

[no_it_all]

Take a deep breath! RELAX! If I read your post correctly, you are considering BK for about 8.5K of unsecured debt? THAT IS NUTS !! Just my opinion of course, but do know if you go BK you are not allowed to do it again for eight years..so you may want to save this silver bullet for a real emergency. NOBODY is going to sue you...NOBODY is going to show up at your door or place of work. Credit card companies AREN'T GOING TO DO ANYTHING but bug you for a while until they realize they aren't getting paid then they will move on to someone else. (don't ask me how I know all this ! ). Don't give them a dime...

[momto2boys]

Thanks for your responses. I really appreciate it Hubby also has debt in his name and we discussed doing bankruptcy together. We would want to keep our house ( its in his name only, since at the time my credit was to bad to have a joint loan ) and vehicle ( its paid off this year ) and the small loan at our bank that will be paid off in June. He has about 4,000 debt in his name, plus we have a few small medical expenses too. I just freaked tonight knowing that an attorneys office called me, that has never happened. I am afraid I will be served with papers or something. Back in 1992 I had a credit card that I never paid off, it was $1500.00 it is STILL on my credit report, every few years they try really hard to collect that debt again. I am afraid that if I dont do something now my debt will be really high. I only bring home about $6,000 a year. I forgot to add, I also have a Target visa maxed out at 1,000 plus late fees, etc.. too, so that should be added to my debt too.

Hubby ruled out Consumer credit. They told me it would take years to pay it off. I am not really worried about American express, or amazon, but Target and Menards are higher amounts.

I really want to pursue Bankruptcy. Hubby said I would have to take a debt management class or something now that the laws have changed. Before the laws changed it would have cost me $1200 to file, and he did accept payments, I only needed $200 up front.

Our car is very old & is having problems, I am so worried about getting a loan for a newer one someday. I am not sure if bankrupcy would be worse, or all these bad marks against me for not paying anything. Ugggh!

This stress is just eating away at me

[13inOR]

If you can get caught up on your home, then you wont lose it if you go chapter 7.
Even though your debt load may not sound like a lot to some people, if you only bring home 6,000 a year, its HUGE. And its true bk is a bad mark on your credit, but so is continual 30,60, and 90 day lates with no end in sight.

Something to think about.....

[no_it_all]

A credit card debt from 1992 cannot be collected...Statue of Limitations will cover you. BTW, not many couples in America are making 6K a year...lets keep <some> reality here! Oops! Let me add this edit: If the date of last activity was 1992 then the SOL has kicked in and tell (write, actually) the credit agencies and tell them to remove it from your report. If you used the credit card recently, (say four or so years ago) then the SOL may NOT have kicked in and it should (rightfully) still be on your report.

[Minnymouth]

MOMTO2BOYS,

You and your spouse need to sit down with a bankruptcy attorney and see what options are available to you for your circumstances.

The consultation is free and you will be amazed at the options......

Let us know what the attorney says.....

[momto2boys]

Thank you very much all of you I think getting a free consultation is the best option right now. I need to see what a lawyer thinks. It might not be worth it, but then again it might. I dont think I will add hubby on this with me since his debt is so much less.

Together we make approx. $34,000 a year, and even without paying any of these cards, we live week to week. Some weeks it is tough even buying groceries. Utilities are late, etc.. it seems that we have way to many bills for how much we make. Life sucks. The good part is both my kids will be in school this year & I can get a decent job that pays much better & gives me more hours. At least I wont have to worry about paying daycare anymore.

Thanks again for listening

[13inOR]

Dont feel bad for not being able to make it, even $34,000 isnt much at all for a family of 4 these days. We wouldnt be able to make it on that at all!

[AMISLANDER]

Thanks for your responses. I really appreciate it Hubby also has debt in his name and we discussed doing bankruptcy together. We would want to keep our house ( its in his name only, since at the time my credit was to bad to have a joint loan ) and vehicle ( its paid off this year ) and the small loan at our bank that will be paid off in June. He has about 4,000 debt in his name, plus we have a few small medical expenses too. I just freaked tonight knowing that an attorneys office called me, that has never happened. I am afraid I will be served with papers or something. Back in 1992 I had a credit card that I never paid off, it was $1500.00 it is STILL on my credit report, every few years they try really hard to collect that debt again. I am afraid that if I dont do something now my debt will be really high. I only bring home about $6,000 a year. I forgot to add, I also have a Target visa maxed out at 1,000 plus late fees, etc.. too, so that should be added to my debt too.

Hubby ruled out Consumer credit. They told me it would take years to pay it off. I am not really worried about American express, or amazon, but Target and Menards are higher amounts.

I really want to pursue Bankruptcy. Hubby said I would have to take a debt management class or something now that the laws have changed. Before the laws changed it would have cost me $1200 to file, and he did accept payments, I only needed $200 up front.

Our car is very old & is having problems, I am so worried about getting a loan for a newer one someday. I am not sure if bankrupcy would be worse, or all these bad marks against me for not paying anything. Ugggh!

This stress is just eating away at me

I agree with what was already posted..."THEY" are not coming after you....you are not in over your head that bad...i.e. many hear are bk due to medical bills and then there's the stupid contingent (myself) that ran up $50K in credit cards........if your credit already sucks...don't worry about it; apparently with the way our society is going, most people's credit will suck....we are headed for very bad times....a lot of people will be hoping that Darrel Daulton is correct and some of us will get to vanish shortly...(if you haven't heard about this one, just google Darrel Daulton (Florida Marlins) and read about his current theory on metaphysics!