Should I? I'm so nervous about putting this packet in the mail!

[Jacey]

I have my paperwork prepared, check for half of the attorney fee (ouch...don't have this right before Christmas with no more credit available!) written and have stopped paying my unsecured creditors as of the 9th...After all my worrying and planning I'm suddenly sick and unsure whether I should proceed. I hate to ruin my perfect credit, but I know I am in the process of killing it anyway. I have an IRA that would pay off my debt after taxes, and I'm debating cashing it in. I hate to do that, but my nerves are getting the best of me. Any advice? I'm $51K in credit card debt and cannot continue minimum payments at this point due to a lower paying job in a dismal job market.

[ValleYum]

::hugs:: It is scary isn't it? But at the same time, it feels liberating too.

Only you can decide what to do, Jacey, but please know you are not alone in how you feel.

[Pandora]

hang in there Jacey - its all normal what you're feeling, but it does get better General consensus is not to cash out an IRA - but only you can make that determination in the end. Run it through with all penalties and tax implications - also bearing in mind that you're cashing in your retirement for the future. Can you rebuild it fast enough when you would need it? Hubby thought about doing that very thing - but I told him under no circumstance were we going to touch his retirement monies he's spent 25+ years building up; we could get rid of the 2nd mortgage (reason we filed) and be done with it in 5 years, keeping his retirement intact.

Know that you're not alone in how you feel as the PP stated, it'll be okay.

[mommi2many]

Go with your first mind. We usually regret the after thought decision. Bk is a very scary decision to make, but after filing I felt nothing but relief. For the first time in a long time, I didn't feel that stress I had been feeling and I could see the light at the end of the tunnel. In the end, this is a decision you have to be comfortable with.

[Jacey]

Thank you all. I put the packet in the mail only because I knew I could call them in the next two days and cancel! What a freak I've become!! Ten years is such a long time to have a big black mark (or red?) and I worry that something bad will come in the future that makes me regret this decision. I know there's no way of knowing, but it can make you crazy. On the other hand, so can $51,000 of debt and scrimping on basics to make minimum payments. I'm worried about recent credit card usage to pay for groceries and household stuff, so I don't know how that will go over. I don't want to wait and risk any judgements, though...this is a very small town.

[tcreegan]

Ten years is such a long time to have a big black mark (or red?)

...not to worry Jacey, you can rebuild your credit in a couple years, your debt-to-income just plummeted (a good thing) and w/ your credit card debt that would have taken 10 years or more to get down. Do some smart credit rebuilding, you will be surprised at how fast your score recovers.

..and don't forget to clean up your credit reports after your cases closes.

I don't want to wait and risk any judgements, though...this is a very small town.

I'm sorry your town is so judgemental about judgements...

Tom in Colo