help!! Sinking fast $4000 credit left. living off CCS.

[mjp80]

Hello all I am new here and have been reading this site for a few weeks.A little about my life is I started when I was 16 with credit cards always paying them off at the end of the month. Then in 2004 I bought a acre of land $4500 and paid it off in a year. My credit score was 780 and things were going well. In my last relationship I was engaged to a woman and she made far more money then me $3000 a month vs my $1200 a month. We both racked up $15,000 on my credit cards. Due to her credit being shot from her last marriage she didn't have her own cards and me being stupid I got her a card linked to mine after she promised to pay them back with me. Then she took off and left me with the debt. Shortly after I ran into problems at work with a medical issue I have where I can't stand long with out my legs going numb and extreme pain. So after I got written up for the 4th time for sitting on the job me and my mgr decided to have my hours cut to 20 hours a week and I said I was going to go to school. Fast forward a month and I am at my friends house and this guy is giving me dirty looks. I ignore him and he comes up to me and pushes me saying" what u looken at you got prob with mexicans" I was like noo and he jumped me so I defended my self. The cops come and the cop tells me he doesn't believe me or him and none of us are charged with assault then he points and says BUT YOU ARE GETTING CRIMINAL DAMAGE. scared that id get jail time I give $1500 from my tax return that was meant for the credit cards to a lawyer to defend me and keep me out of jail. At the end my lawyer was awful and said I need to plea guilty so I don't get jail time.. so I did and got a $800 fine + anger management classes $30 per week for 4 months. A month later im driving my car in the middle of nowhere with this big black truck tailing me and a line of big 18 wheel tucks beside me so I sped up 93mph to get this ahole off my tail and I pull to the right and slow down to 75 . All of a sudden I see a cop behind me. cop pulls me over in my car worth less then $500 and says I was going 96 and how it's criminal speeding. I told the cop Im sorry I knew I was going fast I was worried the black truck tailing me was going to hit me and was looking for a spot to pull right. The cop didn't care and gives me the ticket and I tell the cop why didn't you go after the guy tailing me and he says I would have got both of you if I could have. That ticket comes to $400 and that goes on the credit cards because I can't afford it. Then a month later it's 3 am in the morning and I was driving from flagstaff (a 3 hour drive). I went to see my sick grandmother. All of a sudden flash flash . They lowed the speed limit on the 101 to 55MPH from 65Mph . I was going 67MPH. two tickets comes in the mail and I ignored them because I don't have the money. then they served me two $230 tickets and tacked on a fee for me being served. That goes onto the credit cards. Now just recently my car insurance found out and billed me $978 for six months.They really raised my rates allot. That also went on the credit cards. All my short falls in my paycheck and the fines have now put me at $28,000 in credit card debt. American express has just cut my $20,000 card down to $9,500 making it maxed out and now I have all my cards but discover maxed out. I'm worried very worried I needed a new laptop for college as my old one broke so I just bought it. Now im scared they will get me for fraud.. I've been going to costco buying lots of food and stocking up. Im not done with college yet and can't find a job that will allow me to sit 15 mins every hour like my doctor has said I need to. I bought about $2000 in supplies,, toilet paper, food clothing last month preparing for the big cut off. I can keep making minimum payments for 6 months and just charge basic living expenses then file... will that stop me from getting fraud charges?? One more ticket after my credit cards get cut off and I guess i'll have to go to jail because im to poor to pay them. With the criminal speeding and the criminal damage the judge didn't care how much I made. Right now i'm trapped paying minimum payments of $500 a month and I only make $700 a month. All my college expenses also went on the credit cards. If I file bankruptcy will they take my land? I worked a whole year for it and may have to live on it some day soon. It's all I've got. Is there anyway to protect it once I file being I have nothing else to protect??? Help and advice please ??

[NoMoreCards]

Whew...things have not been good for you lately!! And I don't expect you will like what I have to say but STOP using those plastic cards!!!! You are digging the hole deeper each and every time.

If I were in your situation...
1.) Talk to a BK attorney NOW for information
2.) Stop charging
3.) Stop paying credit card payments
4.) save every penny for filing BK
5.) follow the traffic laws (no excuses) and don't get more tickets. This is in your control.

Your land may be protected, it depends on the local rules. Talking to a BK lawyer however is free most times for a consultation. They could give you a better idea of where you stand. There is no "debtors jail", so they can't lock you up for being broke. However, you can not continue to charge BS items like you have been, up to filing. That WILL raise the fraud flag.

You can make changes to resolve this issue, but it isnt easy. It takes dedication and determination, not much different than other worthwhile things. Just remember, one day at a time. Things will get better, only if you make them get better.

[Never_Again]

As stated, you need to stop using the cards. Never mind the potential for fraud... when you file, they go away, and won't be available.

Your land is not a homestead, but you may be able to exempt it depending upon what your state allows.

Your bigger issue here, is that you do not seem to have income enough to live on, or that your income does not match your wants/needs. Bankruptcy won't fix that. Bankruptcy does not create income. You will need to plan for life after bankruptcy, and how you will be paying your living expenses, before you file. There is no sense in filing if you do not have a plan for how to emerge from bankruptcy, and do ok.

[LSUTiger32]

Defintely stop using the cards, but I don't know for sure that I would file BK if I were you. You sound judgement proof right now. Of course if that changes, you will need to pursue it with an attorney.

What you have more than anything though is a career/income crisis. You need to find something to pay bills and survive, forget about the minimums on the credit cards right now.

[frogger]

You sound judgement proof right now.

Collection proof perhaps, but not judgement proof. If I were your collector, I would be getting a judgement and placing a lien on your paid off land.

[mjp80]

thanks all for getting back to me.. one q though..If I stop paying the credit cards with all the money i've spent with the lap top and $2000 at costco for food and supplies all within 2 months time. Wouldn't that make me get in worse trouble then if say I paid most of my income $700-$800 a month to the credit cards and just put on basic necessities on the cards for the next six months? I figure then they will only see food,gas,power, cell phone on my credit cards.. all minor bills then I won't get fraud.. I can't stop using the cards and stop paying the cards with $3000+ in new spending charges all within 2 months because im freaked about fraud charges.. I'm also hoping ill be done with school shortly and get a better job.. I have 6 more classes until my associates degree. I have no idea how ill pay for college with out my credit cards. That's how i've paid for all my collage .. I know I shouldn't be living off my cards but I feel trapped.. I'm living with a room mate and me and him worked it out where I buy all the food and supplies and he pays the rent. I also have a $153 car payment and owe about the same as the kelly blue book says it's worth. Everyone here says I need to stop but until schools over or I find a better job then home depot how do I stop? I don't feel good about this debt that I have racked up and have had charged to me by the Arizona police and courts but I don't feel like I have any control over it.

[AngelinaCatHub]

mjp80: We have all been young once and made similar mistakes. The advice given by the others, is wise. Stop the credit cards, distance yourself in time as far as you can, stop payment on the cards when you stop using them.

Your driving record needs to be addressed, 95 to get away from a truck is no excuse. You deserved that situation as it is avoidable. Hell, I got stopped for window tint I've had on my cars for 20 years, same shade. Non-the-less $113, and $85 to lighten the two windows. Stuff happens but not at 95mph.

Don't you have a little family aid? Can you live in a tent on your land and file homestead? (I don't know your AZ laws). If the land is close enough to school and your workplace, could you purchase a camper and "rough it"? I have done this and used kerosene lamps at times of my life. Stockpiling for the future is REAL good in this day and time. Best I can do for now, bud. 'Hub

[2Bshinyandnew]

thanks all for getting back to me.. one q though..If I stop paying the credit cards with all the money i've spent with the lap top and $2000 at costco for food and supplies all within 2 months time. Wouldn't that make me get in worse trouble then if say I paid most of my income $700-$800 a month to the credit cards and just put on basic necessities on the cards for the next six months?

No. If you stop paying on the credit cards now it won't make it worse. Stop paying and using the cards for 6 months. Time will cure any fraud suspicions. You are going to have to stop using them anyway since you are almost maxed out. What are you going to do then? I was caught in that viscous cycle myself, charging groceries and necessities every month equal to my monthly minimum. It had to stop for me when one of my cards reduced my limit and raised the interest rate causing my monthly minimum to triple.

STOP THE INSANITY!!

Just stop. Stop charging and stop paying and look into filing bankruptcy 6 months from now. It will take at least 6 months, probably longer for your creditors to start suing you and at least a year before any of them can get a judgment.

[danaf]

Hi MJP80 -

First off - aside from the highway cop situation, AZ is great because they post signs at least a half-mile ahead of radar ticketing so start paying attention to those signs so you don't get zapped! I've spent ALOT of time in AZ and know the roads & highways well. Even on the surface streets, there are signs well ahead of the radar. So no more excuses there.

As long as you don't go out tomorrow and file bk, I wouldn't worry about fraud. Your amounts are small. What tips them off for possible fraud are large cash advances & luxury purchases.

Have you thought about trying to sell your land? I know not easy in this market but you could try and should. Because when you eventually file BK, you only get so many exemptions in AZ. What good is that land doing you? Plus, won't you have to pay taxes on it?

Whatever you do, DO NOT panic! Your situation is not so terrible. If you are going to file bk, plan it out so it works for you.

Once you've posted about fiiling bk, no one on this site will say it's ok to keep using your cards. Has the scenario happened before i.e. where people have thought about filing but still continued to use their cards for whatever reason? Yup. That falls under the 'life happens' category. Should you? No. But again, life happens.

If you can make the min. payments for 4-6 months, then that would be good. The fraud issue I believe only comes into play if you file within 90 days of a large purchase or luxery purchase (I'm sure someone will correct me if I'm wrong).

Finish school, get a better job, try to relax. Even if you make min. payments for 4-6 more months, and then stop paying, it will be a little while before any garnishments occurr and by that time, you will have filed if that is what you decide to do. Making the min. payments will buy you time to figure out what you want/need to do. I made min. payments while planning out my bk....there is nothing wrong with doing so if you can and if that's what you want to do while you figure out your bigger picture.

And also, as a previous poster said, you need to get yourself in a better financial situation because filing bk is not the end-all solution to your financial issues.

Use this site to learn about the ins & outs of filing bk, study, and plan. You will be fine.

[AngelinaCatHub]

Great Post 'danaf' : Good advice and I agree 100%. Seems like he loves his land, that is why I asked if he could spare rent and camp. I've done it, and looking back, the bad times were good times. 'Hub

[justplaintired]

It sounds like you started out ok, buying land, keeping your credit in good standing and then like alot of us, life happened. Not sure if land can be exempt, but I would find out. If it's not, you might as well try to sell it. May not be able to right now, but at least worth a shot. Unless you plan on doing something like sitting a trailer on it and living there. Then it most likely could be exempted as homestead. Then of course it brings into play the amount you sell the land for and can it be exempted once you file. Best advice here is get a free consolation from an attorney.

Slow down a little driving, it's totally in your control on that one. You can't afford another ticket. So watch the speed signs and obey them. Sorry but it has to be said, chalk the tickets up to a lesson learned and slow down.

Also as someone said, you maybe be collection proof right now, judgement proof no. Talk to a lawyer.

Don't panic it as danaf said, you really need to stay in school, get a better job, whether you file or don't right now even if you did you honestly need more income to survive. Hopefully down the road your education will help with that.

Good luck!

[Never_Again]

It is important to realize, that with only (I know, it sounds strange) $28,000 in debt, a bankruptcy may not be the best path here. It will not fix the lack of income, and you will soon find yourself in the same situation, only without debt, but with no money to pay your expenses.

If you are going to be getting a substantial increase in income when you get out of school, then you may have something here. It just seems like it may not be the best use of a legal method that you only allowed to use once every ten years.

[mjp80]

Thanks all for replying to me.

update; Amex just raised my % so high . They doubled my min payment.Also I am being forced to move due to my living situation and I have no money to move my things . I only have my credit cards to charge.I need to move in with the woman i'm engaged to. I found out shortly after my last post Im having a baby on the way. I know bad timing but i'm 29 and feel it's a blessing. I've dropped college for the time being and am picking up a few extra hours here and there at work. I stopped speeding and make sure I don't get any more speeding tickets . My credit is nearing 100% maxed out. It's amazing how fast interests is making it go up 100% of my income is not doing much. I am trying to wait 90 days from when I bought my lap top. Only charging food and gas and essentials . I know what some of you have said but im scared of being locked in jail on fraud for buying this lap top. I didn't have restraint when I was in the store. $2500 laptop..

ps- i'm also thinking of selling the land and using the money for the baby I have coming. should I sell it now ? would that be fraud ? what if i bought diapers , baby food, crib, stroller and what ever else I can think of that the baby will need is that fraud ?

thanks

[AngelinaCatHub]

Well, Congratulations,.......I guess. The laptop is a no, no and compulsion like that got you here. If you wished to go online, there are little cheapies, with much power for $250 if you look. I got mine with 1 gig ram, 160gig HD, no cd player (you can map a drive to install programs, and I have everything I need and 2.5 lbs.

The land idea is great. Use the money first for your LAWYERRRRRRRR. Stop the damb cards. Pleased you are driving lawfully, now keep the insurance current.

It is now down to the wire. You must become a self-sustaining man. You have major responsibilities ahead of you and a child is nonchargeable for the rest of your life.

Thank you for reporting back. I've been wondering about you. Now, go to work on the rest of your life. Make things right. GBWY 'Hub

[StartingOver08]

Sell the land. Get your plan together for your budget and sources of income and then figure out the timing of your BK.

As others said: BK only takes care of past debt - it does nothing to increase your income. One of the benefits of putting together your info for the BK is you are forced to review your budget. Take advantage and look at your current budget to find areas you can trim. You now have a family on the way (congratulations! ) and need to clean up this mess before the baby gets here so you can look to the future and not the past.