Please Help... Lost and dont know what to do...

[jmterrero]

Hello!

Okay so I'm completely at a lost... yesterday I got laid off from my job and my husband doesn't make enough to pay all the bills... I'm wondering if I should file for bankruptcy and if so how long should I wait before I do so?

Here is a bit of history on us... 3mth's ago I had a baby so I was off on maternity leave and wasn't getting paid for it so we got really behind on bills. We're about 9K behind on our mortgage (which they will not work with us at all... we've tried to work out a payment plan since before we actually got behind and they wouldn't do it) and not to mention all our other bills. We're "upside down" on our house since we owe way more then it's wroth and in credit cards we owe about 40K (all together) which all credit cards have jacked up the interest rates so every payment we do (minium) doesn't cover the actualy payment at all.

I'm going to start looking for a job but god knows how long it might take me to find one and if I do who knows if I'll be getting paid what I was before. I dont want us to keep getting deeper and deeper into debt but I'm so scared to file bankruptcy.

I did file for unemployment yesterday so hopefully we have that coming in on my part... how long should I wait before I file? I've read somewhere that it was better to stay on unemployment for at least 3 month before I do so... is that true?

[Trixie007]

Hello & Welcome! You've come to the right place for sympathy and great info , but I'm thinking we might need more details. If you post your income, how it relates to your state's median, how much your monthly debt payments are, are you going to have ongoing medical bills due to new baby (congrats by the way!), etc. then I'm sure people will pop in and help you out!

[catleg]

If your payments on the cards are barely covering interest then your only sane choice is to stop paying them. Likewise, once you stop paying some cards it's usually time to stop paying all cards.

[soleprop]

agreed; every penny your household brings in needs to be applied with great care to the items necessary to live. food, shelter, and necessary utilities. i.e. disconnect the cable, downgrade your internet service, go to basic plans on the phone, anything you can do to save some money.

let those credit cards gather dust - don't pay them, don't use them - this will help you should you decide to file a bk in the future. you can usually go several months without paying before the creditors take their efforts to the next level. somehow i managed to go two years...but that was before this current credit crisis.

i'd advise you wait to file bk until you have some livable arrangement sorted out, because filing bk is not what makes funds available, it just shuts the creditors up and lets you move on in your life. waiting to file bk will also help with the income calculation (an average of the last 6 months of income) as you will have been unpaid for the majority of that time, improving your odds of qualifying for Chapter 7.

your goal should be to live safely on the income coming into your household each month and have less than $100 of 'disposable income' available at the end of every month. start a budget and write down all of your monthly expenses; take a real accounting of where the money goes. payments to unsecured creditors should not be included in this budget, if your intent is to discharge their debts with a CH7 bk.

look for the NOLO Chapter 7 Bankruptcy book - it was a lifesaver for me when i decided looking into bankruptcy was the only way i could fix the mess i'd gotten into. that book, and the people on this site = great resources.

good luck.

[2Bshinyandnew]

This is one of my favorite websites that explains Bankruptcy in Florida:

// url removed

If I lived in the Orlando area, I would definitely at least get a free consult with this him. His website is awesome, he has a great Bankruptcy Blog. Technically, we are not supposed to endorse or recommend attorney's on the forum, and truthfully I don't know the guy at all, but I do find myself referring back to his many Bankruptcy Blog entries when I have a question, in addition to this wonderful place.

Good Luck.

[wonkettegirl]

Commonman2, are you really Dave Ramsey?

I know I'm just feeding the troll, but every single post has been about how the OP isn't "deserving" of a bk in CM2's eyes. Hey, CM2: get a law degree and find work as a trustee. Until then, the rest of us will rely on real trustees' determination of whose bk is appropriate, thankyouverymuch.

Oh, and those bk's that you have "personal knowledge" about? Unless you were the person filing, you don't know diddly. You may think you have special knowledge of another's financial situation, but you really don't.

[justbroke]

BK is only for permanent medical disability and it does not appear to be the case for JM so the best advice for JM is to work harder and spend less, no easy way out.

This is absolutely false (period).

Bankruptcy is used even by cities and towns and other governmental entities to reorganize debt (or discharge certain debts).

If you don't understand the concept of Bankruptcy and the different chapters (of which three of the 4 are Re-organization chapters), then perhaps you shouldn't comment on what Bankruptcy is for.

[ready2puke]

OMG commonman2 is a troll. dont listen to him. what a jerk period!!!!!!!!!!!!!!!
Just took a minute and read some of this guys other posts..Do we have an ignore button on this forum? It sure would be handy right about now..lol

[kenshirley]

Or send the clown to my area and I will take care of him the right way!

[justbroke]

OMG commonman2 is a troll. dont listen to him. what a jerk period!!!!!!!!!!!!!!!
Just took a minute and read some of this guys other posts..Do we have an ignore button on this forum? It sure would be handy right about now..lol

I was just looking for that same button. Seems to not be enabled.

[HHM]

I took care of Commonman 2

[kenshirley]

Thanks, we don't need people like that here.
Banned after 6 posts.
If he is like that in real life it has to make you wonder how he has lived this long.

[ready2puke]

Thanks sooooo much

I took care of Commonman 2

I cant stand that kind of rant..I also hate to see the new folks read or listen to that rubbish. Thanks for your prompt attention with getting out the hook...xoxoxxoxoxo

[kenshirley]

Just report them folks.
It only took the Mod about 20 minutes to yank him!

[OhioFiler]

I cant stand that kind of rant..I also hate to see the new folks read or listen to that rubbish. Thanks for your prompt attention with getting out the hook...xoxoxxoxoxo

One wonders what drives a warpped individual to a forum like this simply to bash those who are in need of advice and help.

I suggest this now banned poster has serious anger issues probably relating to a divorce where his ex-wife filed Chapter 7 after the divorce and he ended up stuck with all the marital debt.

Or he could simply be a psycho.