New to forums, bk & working on letting go of the guilt...

[newstart4me]

Thank you in advance for your input! Let me also apologize for rambling. I've been up all night reading and fretting. I am 'doing my homework', I have a credit counseling appointment next week, and I am reading/studying Nolo's downloadable book (better than carrying around book w/bk on the cover). Just before I got the guts to search for a bk forum, I did a balance transfer for $3500 from one of my credit cards into my checking account.#%!* I did this to keep me afloat literally. If I understand the info I've read here, I need to wait 6 mos. to be on the safe side before I file, and I need to make minimum payments on that card at least. I am an unemployed teacher in California where many teachers who had contracts were pink slipped because of severe cuts in the budget. Even substitute teaching jobs severely dropped off in all three districts I have been working in this year. I am not eligible for unemployment benefits in my situation. I have a time share I cannot afford to keep (much less use), so I am looking into selling that. I have been applying for the few jobs that have been posted in this area (me and all the other pink slipped teachers), as well as jobs out of state. I literally have nothing left to live on. I do have credit cards, but don't want to get into more debt. My back is against the wall. I let my guilt, fear and pride prevent me from looking into bk because of the stigma. My older sister went through it and my father was/is so critical of her because of it. He's pretty critical of everyone in his own family come to think of it... If I have no source of income other than the balance transfer I just did and the pennies I will be able to earn in the one year round district in the area when they start the new year next week, the minimum payments will gobble that up in no time. If I quit paying the minimums on all the credit cards but the one I just did the balance transfer from, won't the interest rate go up and the late fees start to accumulate? I have a car that I'm leasing w/o any other vehicles to use for transportation to sub and hopefully to get to interviews. (The lease ends in May.) What are the pros and cons of continuing to make payments on it? I haven't been to the dentist for several years (since I had my last teaching contract in 2005), and I have a crown that's been loose for months. I'm afraid I'll need a root canal as it is. Is it advisable to go to a dentist and not pay? I have stripped myself down to bare bones on everything in my life. The concept of a 'normal life' has been history for me for quite some time. No luxury expenditures here but organic yogurt! I have read many of the posts here, and am pretty new to forums. I apologize if I posted too much, in the wrong place, etc... Thank you for your insight and feedback. Two other quick questions before I stop: 1. How do you apply for the fee waiver to file? & 2. Is it a good idea to call creditors before you stop paying and give them a P.O. Box so that other people you live with won't see the nasty collection letters, etc... Thanks a million $$$(LOL).

[keepmine]

You do what you gotta do.
First thing, get a job of some sort. WalMart, Target, whatever-you have to support yourself. Start looking for professinal jobs outside of education.
In this instant, you'll likely need access to credit just to afford the basic necessities so, you need to pay bare minimums. You stop paying any cards and in todays climate, you'll likely get your credit limit cut severly or even have the account closed on any cards you carry.
BK is a backburner issue now. You have nothing so, no sense in filing. Get your finances stable is job one right now.

[newstart4me]

Hi keepmine! Thank you for your response. I have one card's huge minimum payment that was recently due on Sunday. My last sub check from one of the district's hadn't arrived yet, and the balance transfer still hadn't shown up yet.The funds necessary to pay my online scheduled payment were not available in my account at the credit union, so the credit union charged me for insufficient funds two times. I panicked because I've always made the minimum payment at the very least! I called the credit union to find out how to have the credit card company stop requesting funds that were not available. The CU rep advised me to call the cc company and make other arrangements for payment. I called the cc company and was very honest. When they confirmed I had no steady source of income they told me that they could not work out a payment plan with me under those circumstances. I told them I was going to get some credit counseling and asked them for names of companies they would recommend. Later that same day I decided to schedule a small partial payment for the day the minimum was actually due. The next day I called the company to have a notation made on my account that I had scheduled a partial payment and that I was expecting a check later in the week. The automated service information indicated that my account had been closed! While I was told that if I had been able to work out a payment plan with them my account would be closed, I didn't know/realize they would then close my account w/o explicitly telling me! How naive of me! I was speechless by the time the rep came on the line. It was over the weekend, so all she could tell me was that a letter was being sent to me to explain everything...and was there anything else she could help me with. I told her why I was calling (partial payment with promise to pay when check arrived), and she said she'd make a notation on my account. In the mean time I will have NSF charge on their end.
How would you proceed with this creditor? I gather you would say scrape together the amount now past due (3 days at this point), make/schedule the payment, and then what? Would you call them after making the payment, or would you wait to see what the letter said and go from there? The rep either didn't have access to the letter (she couldn't email it to me), or wouldn't read it to me so I don't know what it said. In any case, when the bal. tran. records I'll be able to make the payment. I get the 'go get a job at Walmart' logic. Thank you again for your insight, and for not judging me. Any additional suggestions are appreciated.

[newstart4me]

Hi keepmine! I just wanted to clarify that I am taking your advice about the job. That may not have been clear. I participated in an in home tutoring program a few years ago in between teaching contracts, and I lost money! With gas as high as it is, I'll be better off working at Walmart (less than a mile away).

If anyone else has comments, suggestions, etc... I am 'listening'! Thank God for this forum. I cannot undo what I have already done. Kicking myself for it hasn't helped in the past, so doing it now won't help either. Thank you, thank you, thank you!

[keepmine]

The danage is done with this particular creditor. I'd just let the account go. You'll be throwing money down a rathole at this point.
I'd stop worrying so much about paying cc bills and really concentrate on generating income. Your priority on bill paying now is, the basics-food, shelter and transportation.
Get yourself to the dentist before your other cc's get closed or, the credit limit cut.

[deafbroke]

Hi keepmine! Thank you for your response. I have one card's huge minimum payment that was recently due on Sunday. My last sub check from one of the district's hadn't arrived yet, and the balance transfer still hadn't shown up yet.The funds necessary to pay my online scheduled payment were not available in my account at the credit union, so the credit union charged me for insufficient funds two times. I panicked because I've always made the minimum payment at the very least! I called the credit union to find out how to have the credit card company stop requesting funds that were not available. The CU rep advised me to call the cc company and make other arrangements for payment. I called the cc company and was very honest. When they confirmed I had no steady source of income they told me that they could not work out a payment plan with me under those circumstances. I told them I was going to get some credit counseling and asked them for names of companies they would recommend. Later that same day I decided to schedule a small partial payment for the day the minimum was actually due. The next day I called the company to have a notation made on my account that I had scheduled a partial payment and that I was expecting a check later in the week. The automated service information indicated that my account had been closed! While I was told that if I had been able to work out a payment plan with them my account would be closed, I didn't know/realize they would then close my account w/o explicitly telling me! How naive of me! I was speechless by the time the rep came on the line. It was over the weekend, so all she could tell me was that a letter was being sent to me to explain everything...and was there anything else she could help me with. I told her why I was calling (partial payment with promise to pay when check arrived), and she said she'd make a notation on my account. In the mean time I will have NSF charge on their end.
How would you proceed with this creditor? I gather you would say scrape together the amount now past due (3 days at this point), make/schedule the payment, and then what? Would you call them after making the payment, or would you wait to see what the letter said and go from there? The rep either didn't have access to the letter (she couldn't email it to me), or wouldn't read it to me so I don't know what it said. In any case, when the bal. tran. records I'll be able to make the payment. I get the 'go get a job at Walmart' logic. Thank you again for your insight, and for not judging me. Any additional suggestions are appreciated.

Stop paying the creditor. Close your checking account that they did amtomatic withdrawals from and open a new one with a bank. Close all credit union accounts. Credit unions can cross collateralize accounts so if you file bankruptcy they will do that, MEANING THAT IF YOU HAVE A CAR LOAN AND A CREDIT CARD THEY WILL USE THE CAR AS COLLATERAL FOR THE CARD, YOU HAVE NO SAY IN IT, so close the credit union accounts. If I had known that before I filed I would have. We owe just $120 on my wifes car in a credit union loan. She has a $1000 credit card there too. We filed bankruptcy and they cross collaterallized them so now we can't sell the car without paying off the credit card, even if we pay off the 120 for the car, the car is collateral for the card now.
Once you have accounts open at a bank, consult with an attorney about filing bankruptcy. You might not have to wait despite the $3500 cash advance. It might depend on what you used it for. Ask an attorney. Don't assume anything. Once you talk to an attorney then update us on what course of action you will take.

Good luck

DB

[newstart4me]

Hi DB,

Thank you for your response. I was thinking that I needed to wait until after I speak w/the credit counselor before I speak to an attorney. Maybe I misunderstood (no sleep last night). BTW, my car lease is with Nissan, and I have no cc w/ the credit union or ties to any loans either. Can you think of a reason I'd still want to close my CU account? I've been with them for almost 20 years and there's a branch right around the corner. Thank you for the heads up and interest. I've been looking on local job boards for whatever I can find locally....I'm getting paranoid about the possible scenario keepmine mentioned...I'll let you know when I know! Thanks again for your support!

[newstart4me]

Thank you again, keepmine! I've applied for a couple of jobs in the neighborhood already! Your support and insight are both appreciated!

[deafbroke]

Hi DB,

Thank you for your response. I was thinking that I needed to wait until after I speak w/the credit counselor before I speak to an attorney. Maybe I misunderstood (no sleep last night). BTW, my car lease is with Nissan, and I have no cc w/ the credit union or ties to any loans either. Can you think of a reason I'd still want to close my CU account? I've been with them for almost 20 years and there's a branch right around the corner. Thank you for the heads up and interest. I've been looking on local job boards for whatever I can find locally....I'm getting paranoid about the possible scenario keepmine mentioned...I'll let you know when I know! Thanks again for your support!

Actually some attorneys are acreddited credit counselors and can do that for you too and you don't need to do the credit counseling first. I spoke to attorney before doing anything. He gave me a list of credit counsel agencies that were accepted in my state. I ended up actually going pre se (without an attorney) because of money. I couldn't afford an attorney. But I messed a few things up and would have had to pay a lot of money and surrender stuff. Ended up hiring an attorney to fix my mistakes. I saved a little but would hve been better off just hiring an attorney in the first place.
So no you don't have to do the counseling before speaking to attorney but you should do it before filing bankruptcy.
As far as credit union, sounds like you're ok sticking with them since you don't have any loans or CC's with them.

Bankruptcy is not as life changing as creditors and others want you to think. It does hurt your credit. But it can also give you a fresh start and a chance at not living paycheck to paycheck, which is what credit card companies and banks want. Then they own you.
Don't worry about creditors. If you are sure you will file bankruptcy then you can stop paying all creditors NOW.
It was at least a year before any creditors took steps to go to court against me. So you have time to find a good attorney, job, and get settled in before you file. Again, an attorney will give you tons of info and will take you through it step by step. Just check with several, see what they say. This board is here to help sift through things and offer experienced opinions. Relax.

DB

[Pinkie86]

Hi there newstart!

I just wanted to offer some words of support. My mom is a teacher and they recently laid her off. She's been faithful to her school district for YEARS and they've done nothing but treat her like dirt. Schools truly don't appreciate their teachers anymore and my heart always goes out to people like you and my mom.

And I myself can definitely relate with being broke. I'm filing Chapter 7 next month. My story is a long one, but I had to support me and my fiance (he suffered a horrible back injury) for the past year and a half and I've run up a great deal of debt too.

Initially when I realized I last week I have to file Bankruptcy I was TERRIFIED; still am. But the more I read this forum, and the more I educate myself, I'm learning not to beat myself up little by little. Today is the first day I didn't have a stomach ache all day long in almost a week. I haven't had a debt collector call in two days; I broke the news to each of them when they called that I filed Bankruptcy and gave them my lawyer's information.

I'm realizing that this is a second chance at life for many of us here - like someone else said, not living paycheck to paycheck anymore. It's such a scary time, but I think with this forum and all the wonderful people on it, we'll all come out of this ok.

[newstart4me]

I'm in the process of bookmarking attorney websites in my immediate geographic area. Some attorney's websites state very plainly that there's a free consultation. I have two minimum payments that are going to go through tomorrow no matter what I do. The fact that the $3500 balance transfer was done before I read about the 70/90 rule puts me in a bind (it would seem) to wait 6 mos. 2 b on the safe side...maybe. Since I am 'underemployed', ineligible for ui bennies as a substitute teacher (even though I can't control that sub assignments plummeted after the announcement of Arnold's wonderful budget cuts. Add to that, that I injured my foot in September (I think it was broken, but didn't have insurance so I didn't have it xrayed because I didn't want to charge it. I eventually bought myself an aircast online and stayed completely off of it to let it heall.)I'm digressing, I haven't slept since night before last...and thank you for your support, Pinkie! We'll get through this and be stronger for it!

[JRScott]

Try to get some sleep

The hard part is over you've made the decision. I know it seems rough but that's the hardest part.

Good Luck.

[AngelinaCatHub]

Ms. “Newstart” you have had the best of advice and support. Yes you have made the decision. I question your renewing or paying on that leased car. Would it behoove you to purchase a good used older car? Then have no payment after that? Purchase from an individual, like possibly a desperation sale from some other person who needs to dump it. We got a nice 92 grand am four cylinder for 800 bucks and I put a couple hundred into it for tires and I tuned it up. It runs great and was an old police car. It was abandoned by the Trustee as not worth bothering with. Since I have one newer car, he could have taken it if he wished. Like above the first card I would abandon is the card that cut you off. They all talk between themselves and I would guess others will cut you off as well. It may not be a bad idea to distance yourself as long as you can due to the funds transfer unless you can account for using the money on exempt stuff only. Food, blankets, etc. The Nolo book on Chapter 7 is very good. We purchased the pdf downloadable for half the price. I think it was $17. We wish you well and I wish to follow your story so please let us all know how you are doing. You found the best spot for aid and support. ‘Hub

[newstart4me]

Hi JRScott! You are right about it being rough, but the truth is it's been rough deluding myself that getting a teaching contract and paying everything off was going to be the answer. I went to the local Barnes and Noble and picked up the hard copy of the same book you're talking about for about two minutes and put it down. Not being able to make the minimum payment on the credit card I mentioned and what happened after forced me to look at reality. I tried to absorb the whole book after I downloaded it in one day. I'm not going anywhere or doing anything that costs money, so it seemed like a good idea. I did get some sleep and feel almost human. I can only feel better now that I know what I need to do. I have been looking at my income over the last year and I'm way below the median income in my state. It's now a matter of whether I will go pro se or not, and when to file. I need to at least speak to a few attorneys for a free consult to get a better feel for the ins and outs of this process. I've been so embarrassed and ashamed of my situation that I avoid social situations. I think I've turned this into a blog... so I'll stop now. Although I'm feeling pretty down right now, I see that there is hope for the future. That's a major improvement for me. Thanks for the support!

[newstart4me]

Hi AngelinaHubCat! I am not above doing something else for a vehicle. The problem is I don't have the money to buy one. If I quit making the payments how soon will Nissan come and get it? I have been leasing cars from Nissan for over ten years now because it's easy. I turn the car in at the end of the lease and get another one. My payment history with them is perfect. My credit rating is already going to be...altered. It makes sense to get into another vehicle situation, but with what? Do I just quit paying all the credit cards but the one I just did the bt on? The one district that's year round ends it's year tomorrow. There have been no jobs posted on the website at all this last week. The last day I subbed was on June 12th. The other two districts I work in are off for the summer (last day was the 13th). I have a very small check I will receive from one of the districts shortly. I stopped all of the auto pays on my credit cards. I was thinking of doing that for my car lease also, but what would I drive? Another blog I'm afraid! Thanks for listening! I appreciate all ideas suggestions about the car. I stay logged on to this site constantly. Thank you again for your response and ideas!