I know it's never okay to take out a loan while in BK but...

[aces67]

We were on average billing with our light company. In December dh's company did a huge layoff. They allowed him to keep working but at very reduced hours. We ended up behind on our light bill and our mortgage. We finally caught up our mortgage this month and were about to tackle the light bill when the light company sent me a disconnect notice. It seems we now owe them $710 by next Friday to keep our lights from being cut off. I only have $400 budgeted and no other means of coming up with the excess.

I had to have an MRI today that I had to pay $800 for.

Would the trustee really know if we took a small loan out of dh's 401K to cover this??

We make too much to qualify for any aid with our light bill. We could pay this back within 2 months but this is the only way we have to borrow it. My parents can't loan it to us and neither can our in laws.

Thanks!

Thanks!

[ann1073]

Have you called the electric company? Do you have the $400 in hand to be able to pay them? If so, offer that and explain your situation. How much can you give them next month? I can't tell you how many times I've called the utilities on the last day to make payment asking for some kind of extension. So far <knocking on wood> I've not had any of them not agree to work with me. And, with some of the utilities, I've done it two or three months in a row.

If that doesn't work, do you have anything you can sell? I realize that you're not supposed to sell assets, but what about small items.... a number of small things can add up to a larger thing. What about selling some clothes to consignment shops. Kids clothes bring good money at Children's Orchard or Once Upon a Child. Can you do any odd jobs - babysitting, typing, pizza delivery, temp jobs, donating blood.... the list could go on an on. I do concessions at a number of our arenas and the tips are usually pretty good.

I would not take out any kind of loan - if you can't make the electric payment on what you have now, how are you going to be able to pay it next month and pay back a loan. I've been where you are (still am, actually) and took out a payday loan. I had it budgeted to pay it back in two weeks, but something or other came up and I had to extend it, once, twice, three times. What a waste of hard earned money!! I'm not dogging on the payday loan companies - even though they rape you on interest, they serve a purpose in life.... I walked in there willingly.

Sorry, I'm rambling. I really do think you should call the electric company..... I hope they can help. I'll be thinking good thoughts for you.

[Flamingo]

Call the electric company; explain your matter and ask for some sort of paymenent arrangements over the next few months - they will not cut you off if you contact them to arrange some sort of payment. It's when you don't contact them is when you get cut off. Also note it takes a while to get a 401(k) loan. You probably would not have the funds in time as it has to be processed through the holder of the 401(k) for the employer and a check cut and sent to you. The best thing to do is just forget you have a 401(k) plan during the course of your Plan

[aces67]

Well, unfortunately I did contact the electric company...twice as a matter of fact and talked to two different people and they say there is nothing they can do. My power will be cut off on Friday if they don't get there money in full.

Dh gets a raise this Friday so that will be enough to pay back the 401K loan.

I still don't know what I should do but I can't have my power cut off.

[Flamingo]

Well, unfortunately I did contact the electric company...twice as a matter of fact and talked to two different people and they say there is nothing they can do. My power will be cut off on Friday if they don't get there money in full.

Dh gets a raise this Friday so that will be enough to pay back the 401K loan.

I still don't know what I should do but I can't have my power cut off.

Many electric companies have Needy Family or some other sort of collection each year to help people with difficulties in paying their bills or in danger of shut off? Did you inquire if they have such a program you can look into? Are you a member of a local church? Contact your pastor - most churches have emergency funds available to help out in cases of need. Now is not the time to be shy - many people are having difficulties. You may have to do some digging in your area to find out if there are any places that can help you out for a few months with one of their programs. Log into your County or State website and see if there are any programs out there for hardship cases facing utility cutoffs. Do the same with your power company website. You will have to be proactive with this one to get yourself a temporary fix. You will get out of it - believe me.

[aces67]

Do those type of programs base help on your income?? B/c we are far from being low income we just have a lot of debt.

[cso5@]

Man, I feel for you --
In our area, they WILL cut you off, and there are no "payment arrangements" they will accept. I've been there -- we did have our power cut before. Ugh.

And a lot of the help for heating bills programs are for the low-income -- you are right there.

Selling stuff is a good suggestion -- I've sold stuff before, in desperate times.

If you can get the loan in enough time, I'd maybe run it past the attorney and then puruse that, too.

Hang in there -- winter heating bills are the worst, but I find I prefer paying the bigger amount in the winter than going on the balanced billing thing and paying more all the time. Maybe that's dumb, I don't know. I myself owe some $400 by the end of the month.

[Flamingo]

You are in Chapter 13 Bankruptcy. You have run into hardship during your Plan with debt that you have no funds for which to pay it and no relative or friend who can help you. You would not be able to get funds from your 401(k) for several weeks and are facing cutoff of electricity. Call and ask questions. Those programs are based on need - you are in bankruptcy and can offer to make a donation to the program that can help you when you are in better shape. You need to call and inquire and ask questions. None of us know what is available in the area where you live but you have the capability of make some calls or looking information up on line that can help you. If you continue to face these difficulties, you need to consult your attorney to look into having your Plan modified or look into switching to a Chapter 7.

[One Half Full]

My gas was cut off in November and I finally got it back January 28th. I know how you feel.

My electric company was one of the more civilized services. I would not have survived if it had not been for them.

If you have children, can you go to a state welfare organization and find out if there is a utility assistance program?

[SwimminUpStream]

I also know that in some states in the winter time they cannot shut electric off if you have small children at home...not sure if any of that applies to you.

As another poster stated, quickest way is if you have any items to sell get them posted at a good price for some quick cash.

[MajorMike]

Why are you paying out of pocked for an MRI??? Can't they bill you? Do you have insurance?

We were on average billing with our light company. In December dh's company did a huge layoff. They allowed him to keep working but at very reduced hours. We ended up behind on our light bill and our mortgage. We finally caught up our mortgage this month and were about to tackle the light bill when the light company sent me a disconnect notice. It seems we now owe them $710 by next Friday to keep our lights from being cut off. I only have $400 budgeted and no other means of coming up with the excess.

I had to have an MRI today that I had to pay $800 for.

Would the trustee really know if we took a small loan out of dh's 401K to cover this??

We make too much to qualify for any aid with our light bill. We could pay this back within 2 months but this is the only way we have to borrow it. My parents can't loan it to us and neither can our in laws.

Thanks!

Thanks!

[MajorMike]

With our 401K, if you execute a loan, it only takes a few days to ge the money via direct deposit. Aces, what state are you in?
Google Free Services for low income families, and see what comes up. I found a bunch of things but I dont know what state you are in. Did you look into HEAP?

You are in Chapter 13 Bankruptcy. You have run into hardship during your Plan with debt that you have no funds for which to pay it and no relative or friend who can help you. You would not be able to get funds from your 401(k) for several weeks and are facing cutoff of electricity. Call and ask questions. Those programs are based on need - you are in bankruptcy and can offer to make a donation to the program that can help you when you are in better shape. You need to call and inquire and ask questions. None of us know what is available in the area where you live but you have the capability of make some calls or looking information up on line that can help you. If you continue to face these difficulties, you need to consult your attorney to look into having your Plan modified or look into switching to a Chapter 7.

[qwertysue]

Why are you paying out of pocked for an MRI??? Can't they bill you? Do you have insurance?

pssssssst....Mike, she already answered your question in another thread: http://www.bkforum.com/showthread.ph...896#post147896

Amanda, I would definitely google using "your community" + emergency financial assistance + electricity, also google with "texas" in there as well. There are going to be agencies out there, especially since you have a toddler.

.

Eta: here are some links to get you started:

http://www.211.org/ReferWeb/MainForm.aspx (united way)

http://www.ccctx.org/service_emergency.php this is for the Austin area (I have no clue where in texas you are, but Catholic Charities are everywhere--this link is just an example)

St. Vincent De Paul is HUGE on assisting with utilities...try googling St. Vincent De Paul + your community

.

[lrprn]

Why are you paying out of pocked for an MRI??? Can't they bill you? Do you have insurance?

MM, you need to wake up to the reality of healthcare costs today for millions of Americans. In 2005 census data showed that 15.9% of people in the US have no health insurance - http://www.cbpp.org/8-29-06health.htm

Many millions of others may have health insurance, but the out-of-pocket expenses plus deductibles are thousands of dollars a year.

Because of this, most healthcare providers and hospitals these days require pre-payment to provide expensive services like MRIs.

Time to come down out of the health insurance clouds, my friend. It's a cold, hard reality that medical costs alone force a significant number of folks to file bankruptcy.

Why do you think health care costs are such a huge issue in the coming US elections???

[One Half Full]

Many millions of others may have health insurance, but the out-of-pocket expenses plus deductibles are thousands of dollars a year.

My out of pocket expenses were 1/4th of my yearly income and can be traced as the cause of my BK.

I had health insurance-- I am glad of that. If I had not, the cost would have been about 100% of my yearly income.

I would still be here though in either case.