Update~ Please help

[MEA2]

We decided that we can't lose our house(we'd have no where to go) so we can't go the bankruptcy route even though we are buried in debt.Our mbna credit card raised the interest(we weren't late just a large balance $30,000)and the payment is now $800.00 a month.Our car is $550 and mortgage plus second mortgage totals $2000.....We have other bills that go with a house plus 2 smaller balance credit card(well not really small-$12,000 and $8,000)Just writing this makes me sick
Should we consider consumer credit counseling?I've heard so many are shady any ideas or advice would be so appreciated!
Thank you

[arkienurse]

We decided that we can't lose our house(we'd have no where to go) so we can't go the bankruptcy route even though we are buried in debt.Our mbna credit card raised the interest(we weren't late just a large balance $30,000)and the payment is now $800.00 a month.Our car is $550 and mortgage plus second mortgage totals $2000.....We have other bills that go with a house plus 2 smaller balance credit card(well not really small-$12,000 and $8,000)Just writing this makes me sick
Should we consider consumer credit counseling?I've heard so many are shady any ideas or advice would be so appreciated!
Thank you

Have you tried talking to a lawyer yet? The consultation visit should be at no charge, and they could give you advice on which way to go. Wthout knowing what you make, that sure does seem like a lot of payments to cover every month, and you aren't even talking utilities or FOOD. Much less clothing or medical visits.

We didn't have as much cc debt, ONLY 25,000 between the both of us. We were making the minimum payments and limping along. Then a bad thing hit DH's credit, and all of his cards jumped to the max interest rate, suddenly the interest alone was equal to what we had been paying before. Then one of my cards was late because of this, so my cards jumped. NOt to mention that we were paying 583 for my van, 273 for DH's truck and 425 for the house.

I feel so much better now than I did 2 years ago. I actually have the money to buy groceries without letting another bill go to do so, or having to put them on the cards. Now granted, things are tight at times, and I am worried about getting my son through college on only partial scholarships, and being able to pay for the luxurys. But we are surviving, and our family is together and DH and I aren't fighting over the bills and stressing out.

BTW, you can do BK and keep your house and car in some cases. We did. A BK lawyer can help you with these decisions. As much CC debt as you mention, I would definitely set up a few appointments with lawyers to talk to them and see what your options are.

And if you need to know more details of my case, I would certainly be happy to talk to you, but others on here are more expert with exact legal details than I am, I am more of a personal experience type of person. ( My 12th grade history teacher said I would make an excellent social worker as I like the human side of things, not the icky details like laws and dates).

[SinkingFast]

I remember you, MEA!

If I remember correctly, you're right below the Median anyway. The Secured Debt excess on your home will be deducted out on the Means Test too.

If I recall correctly, equity in your home is not gonna be an issue. With the State you live in and your Homestead Exemption allowable, you're OK there.

You need to go chat with a few attnys. Consults are generally free.

But from what I remember, you shouldn't have a problem doing a Ch 7 and keeping your home. Probably your car too.

[djk]

yeah, talk with at least a couple lawyers. (i never thought I'd post that advice, but you seem to want the house and have ALOT of issues) I wish you Good Luck.

[MEA2]

BTW, you can do BK and keep your house and car in some cases. We did. A BK lawyer can help you with these decisions. As much CC debt as you mention, I would definitely set up a few appointments with lawyers to talk to them and see what your options are.

And if you need to know more details of my case, I would certainly be happy to talk to you, but others on here are more expert with exact legal details than I am, I am more of a personal experience type of person. ( My 12th grade history teacher said I would make an excellent social worker as I like the human side of things, not the icky details like laws and dates).[/QUOTE]

Thank you for the advice.What made you decide to do Chapter 13 versus 7?How is it going?
Take Care

[MEA2]

I remember you, MEA!

If I remember correctly, you're right below the Median anyway. The Secured Debt excess on your home will be deducted out on the Means Test too.

If I recall correctly, equity in your home is not gonna be an issue. With the State you live in and your Homestead Exemption allowable, you're OK there.

You need to go chat with a few attnys. Consults are generally free.

But from what I remember, you shouldn't have a problem doing a Ch 7 and keeping your home. Probably your car too.

Ofcourse I remember you too!All of your advice was so helpful!We will definitely be consulting lawyers this week...I'll keep you posted...
Thanks Again!

[aa06a47]

We decided that we can't lose our house(we'd have no where to go) so we can't go the bankruptcy route even though we are buried in debt.Our mbna credit card raised the interest(we weren't late just a large balance $30,000)and the payment is now $800.00 a month.Our car is $550 and mortgage plus second mortgage totals $2000.....We have other bills that go with a house plus 2 smaller balance credit card(well not really small-$12,000 and $8,000)Just writing this makes me sick
Should we consider consumer credit counseling?I've heard so many are shady any ideas or advice would be so appreciated!
Thank you

You can do BK, it was designed for people in your situation.

If your equity is less than your states exemption, a chapter 7 is great. If it is more than your states exemption and you want to keep your house, chapter 13.

Do the free consults. Most people don't lose anything except some pride, a few hairs off there head, and an enormouse Pacer bill.

Side Note....No wonder MBNA sold to BofA. They gave people such hugh credit limits and then jack the rates and payments so high, they gotta know that they are putting people into BK by doing this.... BTW, I owed MBNA more than you did, and they jacked my rates from either 3.9 or 5.9% to 29+%). Now they get 0%, and a few cents on the dollar each month in chapter 13 payments...and I mean a very few cents on the dollar.

[arkienurse]

Thank you for the advice.What made you decide to do Chapter 13 versus 7?How is it going?
Take Care

Well, when we laid it all out in front of the lawyer, they told us that because of our income, our only option was chapter 13 if we wanted to keep our house and cars. Now we did not shop around and consult lawyers, which I know now that we should have went to several. DH was like OK! lets get it done, and we actually signed papers on our first visit.
My payments are 580 out of each of my paychecks(biweekly), so I end up making 13 payments each year. We did have trouble getting our plan confirmed, because when the mortgage company filed their paperwork, they charged our escrow account and made it look like we were behind in payments by that amount. It actually wasn't until almost a year later, when WaMu sent an escrow refund check that I made everyone understand what I was saying. I marched into the lawyer's office, and showed them the check, and asked if it were anyway I could send that back to WaMu and get them to drop their objection. Finally, the lightbulb went on in someone's brain, and we were confirmed within a month.
It has gone ok for the most part. Some months, there isn't a lot left after paying the bills, but still better than before. I do have to curb impulse spending, as it can really knock the budget for a loop. Our truck is paid in full, and we have the title to it. My van has the secured portion paid, and now the bk payments are working on the upside down portion( because we are in a 100% payback plan). And we lost 500 month when DS graduated HS and lost his SS survivor benifits. For the last 2 months it has come in his name. First month, DH let him keep 200 of it, and we took the rest. I put it in savings, to see if we could actually meet all the bills without it, and we did. This month, I took his entire check and helped him open an account to put his graduation money in. Again we were able to get by without it. Now his last payment will be coming in June, and I plan to put it up in savings, to help out with college expenses not covered by scholarship or his student loan. If I had seen that we couldn't make it without the SS money, I had been working on a revised expense schedule to take to the lawyer and ask for a modification. I don't want you to think it is easy, because it isn't, but I have so much more peace when it comes to finances now than before BK. And I don't even have the plastic to fall back on now.( and may never again unless I change my mind)