Another newbie

[axeshifter]

Thank you all so much for your encouragement! I don't know how easy this will be for us. My husband has not lost his job, (I am a stay at home mom to three children), we don't have huge medical bills and no one has died. Honestly, we were just stupid with our spending habits. Then it started getting tight and like I said earlier, we started taking out more loans to just catch up and now-YIKES!!!! This week the creditors have started calling-I don't think I'm gonna answer the phone anymore Has anyone ever had experience with the wife being a stay at home mom? I would go to work but I really don't have much experience in anything and it would probably cost just as much for daycare.

Anyways, thank you for taking the time to make me feel welcome here. I love reading about everyones success stories and feel totally encouraged that most of you feel so much better afterwards. The before feelings really stink!!!

My wife and I are in a similar situation. Mixed feelings: Definately. I am still employed and my wife stays at home with our two children (they are 2 and 5). Last year she went back to work in an attempt to keep us out of bankruptcy. Considering her lack of exxperience or training It seemed like it was the perfect job for our situation. She worked at a daycare, our children went to the same daycare so we got a discount and she was always close to them. It backfired quite badly. after the first week which was in august and up until she quit in february one of us was always sick. Our 2 year old was hospitilized three times once for surgery after a nasty ear infection, and the last straw was when he was hospitilized for pneumonia. So beside the horror of watching your children suffer, it was the icing on the cake financially. Over the 7 months she was working we racked up more in medical bills then she took home in pay. So that didn't work for us. So long as we can make our budget work post-bankruptcy (which I think we can) were better off with her at home.
First post by the way, Thanks to everyone for all the info and advise.

[SinkingFast]

Kids out in daycare are at much greater risk for illnesses and infections than kids that stay at home.

And when a child brings it home and the parent catches it, it's much worse for the adult. Children's viruses have a much more virulent effect on adults than with other children for some reason.

I didn't go back to work when the kids were small because I'd literally clear $40/wk for 40 hours of work. After daycare, travel, clothes, lunches, and such. So it really wasn't worth it.

[miss puff]

So, I have a question. We are trying to decide what to do about our vehicles. I have tried to read as much as I can about this subject but I am still just not getting it. Here's the scenerio: We have a 2002 GMC Yukon XL with a $15,000 loan on it. I would probably say that it is worth about that much. We also have a 1999 Ford Taurus that we have a loan note on (we didn't buy the car with this, it is collateral) for a $7,000 loan, it is worth only about $3,500. So, if we don't reafirm with either company, but continue to make the payments, they are less likely to come and get the vehicles? Becuase it is more hassel then what it's worth type of thing? What if they didn't get the vehicles, and we made payments for like two years until our credit is better, then got a different vehicle, could we just call them and tell them to come and get it? Or could they come and get it at any time without any notice even if we are still paying on it? Our laywer said to include the Taurus on our BK as it is an upside down loan. However, I don't think we can do it without two cars. hmmmm..... don't know what to do......????

[miss puff]

And when a child brings it home and the parent catches it, it's much worse for the adult.

OMG-Sinking, I got strep throat this last winter season and I remember my sister telling me that a sore throat virus was going around and I said, it can't be JUST a sore throat cuz I feel like I am dying. I could barely even talk it was so bad and my doctor took pity on me and gave me a shot of medication so I didn't have to swallow it! It was horrible. I don't even remember ever even being that sick.

[miss puff]

and the last straw was when he was hospitilized for pneumonia. So beside the horror of watching your children suffer, it was the icing on the cake financially. Over the 7 months she was working we racked up more in medical bills then she took home in pay.

lol axeshifter, been there, done that! Our 4 year old was hospitalized with pneumonia after I had brought him to the doctors three days earlier and they said it was just a virus. Was in there for 3 days. I was scared to death and so pissed at the same time. (can I say pissed?)

Also, on a bad month, all three kids go to the doctor and it's a $20 copay each and meds are anywhere from $25-40 per med so we would easily drop around $150 on some months. Not fun when your living off your pennies to begin with. But what can ya do? Kids health has gotta come first.

[SinkingFast]

So, I have a question. We are trying to decide what to do about our vehicles. I have tried to read as much as I can about this subject but I am still just not getting it. Here's the scenerio: We have a 2002 GMC Yukon XL with a $15,000 loan on it. I would probably say that it is worth about that much. We also have a 1999 Ford Taurus that we have a loan note on (we didn't buy the car with this, it is collateral) for a $7,000 loan, it is worth only about $3,500. So, if we don't reafirm with either company, but continue to make the payments, they are less likely to come and get the vehicles? Becuase it is more hassel then what it's worth type of thing? What if they didn't get the vehicles, and we made payments for like two years until our credit is better, then got a different vehicle, could we just call them and tell them to come and get it? Or could they come and get it at any time without any notice even if we are still paying on it? Our laywer said to include the Taurus on our BK as it is an upside down loan. However, I don't think we can do it without two cars. hmmmm..... don't know what to do......????

If you don't reaffirm the notes on either vehicle then you're free to do what you want, basically.

But it's not without a penalty. If the loans get included in BK, you won't get credit for paying as agreed on your Credit Reports.

As long as you stay current on your payments, you'll be able to keep the vehicles. If something comes up and you can't pay, the Lender will come after the vehicle pretty quick. So always allow plenty of time for the Lenders to receive and post your payments well before the due date.

Also, if something happens and you see that you can't keep both vehicles, you can just call one of the Lenders and arrange to turn over the vehicle. It's best to do that on an arranged basis rather than have a repo happen. Usually the Lender will arrange for you to turn in the car at a dealership. But where ever you drop off the car, be sure to get a signed receipt from whoever you turned the car over to. It's a CYA for you. Always Paper Trail yourself.

Another thing,.......... Since the loans will be included in BK, the Lenders cannot contact you like normal. You won't get monthly billing statements any more. That's against the law. The Lender can send you a monthly "informational" statement but they cannot send you a bill. BK people usually have to deal with a totally different Dept than regular clients. So be sure to get that info from your Lenders in advance. The mailing address where they'll want the payments sent, contact phone numbers and such. Just so you're prepared.

[miss puff]

Hi All, Hope you had a great weekend! I was just wondering if anyone has given up their house during their BK. We have a house that we bought 4/05, have sub prime lending, interest only payment on the first and second (it was the only way to get the house). Now that we are going to be filing in July we are contemplating letting it go, maybe rent for a couple of years and then try again for a smaller house. It's a big house, 4 br, 2 story that I am afraid even after the BK if we had an emergency that we might struggle with this house payment after the arm changes next April, the taxes are due and the insurance is due. So, I was just wondering what kind of time frame people have had from filing to when they actually had to vacate their homes. And also, does it go on your record as forcloseing or being discarged with BK? Any input would be greatly appreciated. Thanks so much.

[Minnymouth]

Many people give up their homes in bankruptcy....

Some are seized by the Court (assets), some are surrendered (because they are relocating or downsizing.... some just because the house payment is really more than they can afford..........

If I was in your position right now............. the best thing I could do to "help myself" and secure my future better would be too:

1. File Chapter 7.........
2. surrender home due to 2 mortgage and interest only ARM (you will not have any equity for a long, long time - all your paying is interest....)
3. surrender both autos Both of them you are upside down on....
(I would find me two cheap autos to drive for at least 1 year....
4. include any and all debts that I could and have them discharged debts except utilities - keep them currrent)

Get a "new beginning" and a "clean slate & fresh start" in life.......

If you decided to hang onto the home or autos........ you cannot miss a payment of anykind (be prepared).......

Some lenders will not let you keep home or autos WITHOUT SIGNING reaffirm papers (thus if you fail to pay - THEN you are responsible for total debt in the future).... miss a payment and they can foreclose on you.

Wiping the slate clean, renting for 2 years, then buying a smaller home just maybe the "thing" that you need to do right now............

If you do file and eliminate EVERYTHING - then next time be realistic about what you can afford, what you really need, and how much it all costs.....

Many folks do not realize what a "position" they have gotten themselves into until its "too late"...... and very difficult to get out of......

No matter what the reason you are wanting to file, bankruptcy is a way of changing all the bad situations into a "liveable" one......

Seek the advice of at least attorneys and see what they tell you..... but remember - THEY AREN'T THE ONES PAYING THE FREIGHT - YOU ARE!!

You can seek BK for relief of your debts and then still come out of BK - still deep in debt.... if you try hanging onto things that you cannot really afford right now.....

Do yourself a budget - and from here on out THINK - "INCOME VS BUDGET" - and the need of a backup fund also.........

[Minnymouth]

Surrendering would be considered "discharged" in bankruptcy.......

In most states you would have several months to stay in your home before you have to vacate it (depending on your state laws)..... some states its 6 months up to a year......

[miss puff]

Surrendering would be considered "discharged" in bankruptcy.......

Thanks so much for taking the time to post Minnymouth. So it wouldn't be considered foreclosed upon? Surrenduring is considered "discharged in bankruptcy"?

[AFreshStart]

I've a question, if you possess a government clearance and file for BK, will you end up losing that clearance?

[aa06a47]

I've a question, if you possess a government clearance and file for BK, will you end up losing that clearance?

Depends on the security clearance you possess. If you have a "Q" clearance, you will get your security clearance pulled within minutes after they find out. Armed security guards will come get you at your desk (I use to work in a Q clearance facility, and saw it happen with my own eyes). At the time, no one knew what happend, but later found out the guy had just filed bankruptcy.

You will generally get it back after about a year or two of interrigation.

I am not sure about non-nuclear clearances.

[AFreshStart]

Depends on the security clearance you possess. If you have a "Q" clearance, you will get your security clearance pulled within minutes after they find out. Armed security guards will come get you at your desk (I use to work in a Q clearance facility, and saw it happen with my own eyes). At the time, no one knew what happend, but later found out the guy had just filed bankruptcy.

You will generally get it back after about a year or two of interrigation.

I am not sure about non-nuclear clearances.

AA06a47, thanks for the message...I've not heard of a 'Q' clearance but I do possess a 'TS'.