Finally biting it.

[jensu82]

The ceiling finally fell on our head and we're filing BK.

I am meeting with several attorneys next week and I will be picking their brains.

In the meantime...

Indiana residents, married, one income household. Husbands job is base $100/day 5 days a week and he makes commission based on what he sells. Husband was unemployed for the previous 2 years and just started this job in January. Looks like average pay is $3000 before taxes monthly.

We have

hellacious medical debt (at least $30K, haven't added it all yet) some are trying to garnish
husband's back taxes, state and federal, and arrears on child support from not working (I know we can't file on either) state tax lien on '99 van
$4900 voluntary repo from 2010 in my name (no income so no payments)
$2k to Cap One
and honestly, there are a lot of little miscellaneous bills that have turned to collections over the past 10+ years that we haven't paid. We both came from previous relationships and incurred a lot of debt through those. I would estimated it at over $10K.

We do not own our home, we rent but we're currently behind 1 month. Our utility bill is over $800 and due to be disconnected if it's not paid by 10/5. (Paying it tomorrow.)

I have worked out an agreement with our landlord to pay him current till December if he waits till I get my school grants in mid-October. I am expecting a little over $6K and am going to use that to pay all utilities and necessities so we won't have to worry for a little while.

Does this sound alright? I mean, it is okay to do this?

Also, how do you budget for Christmas? We have 2 kids and 1 due in November. We cannot not have Christmas right??

Sorry I'm a little frazzled and my thoughts aren't piecing together right.

[keepsmiling]

Can you pay for your necessities on the new salary? Have you been paying anything the past few months on the bills that you will be discharging?
If the answer to these q's is "no"... then your problem is still one of income. You can't budget for Christmas until you have money to actually live.

[jensu82]

Can you pay for your necessities on the new salary? Have you been paying anything the past few months on the bills that you will be discharging?
If the answer to these q's is "no"... then your problem is still one of income. You can't budget for Christmas until you have money to actually live.

We have been paying on medical debts to avoid being garnished. That's close to 650 a month and we're also paying an attorney 110 month for a previously botched child support case (partially why there are arrears). My husband still isn't keen on filing but I see no end in site! I'm on anxiety/antidepression meds now and about ready to have our 3rd child. I'm at my wits end!

We can make it after the bk but I see no possible way right now with everyone lining up to take us to court.

[jensu82]

Can you pay for your necessities on the new salary? Have you been paying anything the past few months on the bills that you will be discharging?
If the answer to these q's is "no"... then your problem is still one of income. You can't budget for Christmas until you have money to actually live.

Oh and I forgot to mention the new oil pan and transmission we had done last month. That was almost 800 (reason for behind on rent and 1 mont of utilities).

[keepsmiling]

Ok, that helps a little. But even with those expenses gone, you will have to be careful. Rent goes up, new baby costs lots for diapers and food, utilities and gas keep going up, car always needs fixing....that 650 will be quickly eaten up. Hopefully you have health insurance? Even so, there will be co pays, deductibles, blah blah...

You are probably under the median so you don't have to "budget" for Xmas for purposes of the means test. But-- you are going to need to start figuring out some ways to increase income and save up an emergency fund and for the new arrival.

As to how to buy gifts etc....if you haven't already done so, you can learn how to shop sales, garage sales, free cycle, etc.... no reason kids' stuff has to cost a lot of money. They don't know or care if their toys have been pre-loved, unless that's how they have been conditioned.

I can't comment much on the school grants except to ask... how will you pay for school?

[jensu82]

With our new budget I've worked on, we'll actually be able to start saving every month and we'll have a cushion.

We've been living on a lot less for the last 2 years and we've finally reached a point where it's time to file and get it over with.

We're eligible for insurance through my husband's employer once the baby is here so we'll be taking advantage of that. Right now, the 2 kids and I are on the Indiana HIPP. My husband has no insurance and everything he's being sued for right now is from 2010 and his 2 week hospital stay.

My husband's pay is increasing and according to his employer's plan, he'll make over $67k next year. We're starting to see it pick up already but these unexpected pop ups are killing us.

[keepsmiling]

All great news! You will have a nice fresh start.
But.. what about that grant?
And can you stall on that garnishment now? Hopefully some of the pros will chime in on that. How close were you to actual garnishment? This would be a good q to ask the attorney immediately. Maybe you can hold on to the next payment.

[jensu82]

I meet with attorneys starting tomorrow.

I can keep the grants and student loans as we'll be using them to pay ahead on other necessities and my schooling.

I'm really looking forward to getting this started and over with.

The garnishment hasn't happened yet as I made payment arrangements with the secretary answering the phone. She said we could just pay $20 until the first of the year. I couldn't bring myself to tell her we were filing bk. Was I in the wrong there??

[keepmine]

I meet with attorneys starting tomorrow.

I can keep the grants and student loans as we'll be using them to pay ahead on other necessities and my schooling.

I'm really looking forward to getting this started and over with.

The garnishment hasn't happened yet as I made payment arrangements with the secretary answering the phone. She said we could just pay $20 until the first of the year. I couldn't bring myself to tell her we were filing bk. Was I in the wrong there??

You did the right thing. Nothing in the bk code requires you to notify creditors until you actually file. No need in risking making them more aggressive.

[jensu82]

Thanks for backing up my thought. I didn't think I was wrong but I certainly didn't want to ruin anything before even filing.

These medical bills are eating us alive.