Is there any help for US????

[sassiebaz]

Need advice. Im in over my head! Here's the deal....we filed Bk and discharged in 2003. We got back on track, had another baby (#3) and my husband's income was increasing every year. I couldn't seem to say no the credit card offers, and for several years we were keeping up with things pretty well. My fico was around 680. Not great, but good. Then, my husband was let go in June of this year. Mind you, Ive been a stay at home mom, hoping to pursue nursing school. Finally, after 6 or so months he has landed a position much like the last although making considerably less. I have taken a low paying, full time job and put the little one in daycare. Now we are in debt up to our eyeballs, most of which we are months behind on. I have talked to our car loan company to make arrangements and look at a refi. WE owe 2 payday loans. All in all including our cars we are about $60K in debt. The only we can afford to keep paying is maybe 2 credit cards and our vehicles. What do we do? Credit counseling says we cannot afford to do a debt repayment. I think CH13 is out of the question....how long before the creditors garnish our wages? How can we possibly pay this debt off

[blankslate]

I'm sorry to hear you are going through all of this.. you are not alone!

I have a friend who was in a similar bind and didn't have enough years behind their ch7 to do it again. They did ch 13 and it's killing them. Her husband lost his second job and there is absolutely no leniency for ch 13 payments.

Your credit is going to take a huge hit no matter what. My advice is to do your best to honor your debts and be honest with the creditors. For the cards and payday loan, pay what you can and make sure you do it religiously with each paycheck so you can show a judge that you have tried if it gets that far. Payday loan people will try to demand the whole amount but when it comes down to it, they won't refuse your money even if it's a $10 payment. Same with the CC's. If they DO, then keep your receipts and proof of trying to pay them. I hope you can refi the cars, if not you may want to consider a voluntary repossession. If you're staving off the creditors with small payments, try to put some aside to buy some cheap used cars for cash. I've BTDT and while a crappy cheaply made Korean car isn't as glamorous as my former German engineering... it gets me around and I own it.

[Flamingo]

Your BK was under the old law; therefore, unless they changed the filing time for old law cases under the new law, you cannot file Chapter 7 again for I believe 7 years from the date of your last filing (it was changed to 8 years, I believe, under the new law).

What occurred with your situation happens to a lot of people. You just did not make the necessary adjustments to your lifestyle after discharge to prepare yourself against having to be in the position to file again and you know why as you state it yourself in your posting. You can probably file Chapter 13, you get a better job or hubby get a second job and try to buckle down and pay off things and just stop buying and learn to do without or try to settle with creditors if you cannot pay your bills. I would highly suggest getting an appointment with a BK attorney (most give free initial consultations) to go over your entire situation so you can be advised exactly where you stand and what you can and cannot do. Best of luck to you...

[gophermn]

sassie - sorry to hear this. At first I wanted to rip on you with your quote " I couldn't seem to say no the credit card offers" but the thing is that happens to a lot of us. We get bailed out only to see things are back on trackm you get busy and next thing you wake up to find yourself walking in thise same footsteps as before.

Is there anything you can do to reduce your payments, cut costs?
Example:
Reduce cable
Sell one car (saves you insurance and gas $$)
Market sucks but perhaps move into a smaller house. I know 3 kids but.?.?.?
Reduce holiday spending.

Anyway you got the idea. Good luck and keep the head up.

[StartingOver08]

Another thing that might help you is this: The credit card companies all have hardship depts now. What you do is negotiate with the hardship dept for a payment plan. Most will put you on a 5 yr plan and reduce the interest to 2% or 4% (I did this with Chase and with BOA for a year before filing). You have to agree to close your account prior to working with the hardship dept. DO NOT CLOSE THE ACCOUNT BEFORE YOU WORK OUT AN AGREEMENT.

They may want you to have an auto draft in place (Chase did, but at the time BOA did not). If they do, make sure it is a separate account from your regular accounts (just in case). Also, do not try to work this agreement with a regular customer service rep - they do not have the authority to make these hardship agreements. You may have to call several times before you get to the hardship dept, but it is worth the hassel.

This is like doing your own mini 13 without court supervision. The advantage to doing this is you may not ever have to file for BK. I also cut out my TV (satalite), newpaper and magazine subscriptions, all the little things that add up (pizza night, coffee out - all gone long before the BK).

For me, it helped to cut everything in the budget. Then go back and cut again. I was on the phone for several months cutting all expenses - even when the cc co's said no. You just have to be persistant. Good luck. You can do it.

By the way, you do this without a debt settlement company - that way you do not have to pay their outragous fees. If a creditor will not work with you - let them go. They have to go through the entire suit process to get a judgement and there are ways to avoid/prolong that.....You are in survival mode for your family now and family comes first.

[Doghouse]

Or you may even try settling with the CC companies. After calling me 10 times a day for a long time, I answered and told Citibank that I will be filing for BK. A few days later I received an offer in the mail from citibank offering to settle my debt with 40% off what I owed. And these can be paid in installments with no interest charges. Of course I ignored the letter but you can try and see what your creditors will do.

[sassiebaz]

OMG you all have been so helpful, patient, and so NON-judgemental! Let me say, I never thought I'd end up in this situation. When we filed BK in '03 I only had 2 small credit cards, that were almost 5 years old. So, this whole credit card thing is new to me. I really did use them carelessly! I don't know what I was thinking.

We have really modified our expenses! No home phone, no highspeed Internet...modified cable. No eating out, haven't bought any new clothes for kids. Luckily my son didn't really grow this year so he is wearing last years line...lol. My youngest got all new clothes from family and friends for her Bday, and middle child wears uniform to school....that has really saved us $$$ As far as the debt counseling...the plan Im looking into is actually free, through our credit union! My husband is working two jobs, and I just went from flex time to full time. Total Christmas expenses....$300. That's including 3 kids, hubby and my Mom that lives with us. I'd say that's pretty good????

My husband says Ch13 is not an option. He doesn't want another BK on the books. So, I will take all your advice and try to pay something and when time comes, if we can settle some debt, than so be it! I just worry about garnishments.....how long will that take? If I'm paying them something...will they still garnish???

[GreenInkOnPaper]

As far as garnishments go, no one can just up and start garnishments ~ except the IRS and federally backed loans, or the state coming after back child support. They have to sue you and win. Then they can only get a percentage of your disposable income. So, if that happens, you'll have notice well in advance.

[gophermn]

If you call them, make an effort, I would hope they work something out. For peats sake, why not go to Capital Hill in your private jet and ask for a loan.
This country obviously is on thin ice in the financial market. We are on thin ice and the forecast is mid to high 80's :-)

Can't hurt for trying them right? Sounds like you have scraped everything possible. I wish you luck! You will find a way, we all do right?

[blankslate]

I'm guessing they won't go after you for a judgment if you are paying something, even if it's a tiny something. Just be sure to watch the checks you send them to know that they are being cashed. If they are being cashed, legally they are accepting your payment plan. IF they reject the checks and send them back uncashed, save them and any letters that accompany. If they take you to court, send that information to the court to show that you have tried and most likely their case will be dismissed.

I don't think there will be any modifications to bankruptcy laws under the new administration but I'm sure there will be modifications to lenders and how they pursue debtors like freezing interest, accepting lower payment plans, etc.

[AngelinaCat]

Do check out Angelfoodministries.com. You can get 'core' meals, basically meats and such, then add sides--but carefully. It is good basic food, and very reasonable because it is bought in bulk. There are no income requirements, everyone is welcome, no matter the financial situation. Nor is there any preaching or proselytizing involved.

We have been members since September and have been very pleased so far. For around $100.00 or so a month, we have been able to cut the food bill quite a bit. We have meats to plan meals around and frozen dinners, when we don’t wish to cook. We are a family of two. Whereas, before this, I would go into the local market without a plan, except ‘we want XXXXXXX for supper tonight, and I would barely get out of the store for under $50.00 a pop.

There are threads elsewhere here about Angelfood. Do a search and check them out as a resource.

For clothing, don’t forget your local thrifts and Goodwills. Many times you will find 'blems' or brand-new clothing never worn.

Good luck to you.