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Financial meltdowns, please share how you recovered or are recovering.


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I am looking at solutions for my dad. Would you guys be so kind to share your experiences? I know this is a public forum so if you want to help but not post, perhaps you could PM or e-mail me.

 

My neighbor got into a mess due to ... life. Her solution was to find a debt consolidation lawyer (not service). They do charge her a retainer which she has to pay first but instead of 15 years of credit card debt, she has 3 years of payments to clear everything (but house) including retainer. Of course her credit is shot but the lawyer asked her what she preferred, debt-free or good credit? I don't how this set up is working for her but it's just one idea I've been contemplating for my dad.

 

The kicker for my dad is owes the government man.

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He needs to work with the gov't man. The IRS is fairly easy to work with. They will go over his budget and set-up a payment plan. If he has substantial assets, they will want those (but not the house or a car.)

 

He can go bankrupt. This was what a family member did when he was served a seizure order for any assets to pay a judgment from a credit card. The bankruptcy court either sets up the payment plan based on pre-set formulas or discharges the debt entirely (when no assets/low income.)

 

I'll be honest and say at this point we haven't done a whole lot. We sold everything we could (except my van) to pay the debts we could. We are getting lots of collection letters and phone calls (that we do not answer), but there isn't anything we can do.

 

We could go bankrupt, but it costs money we don't have. I would rather wait and see what we can come up with as we get back on our feet. We're loosely following the Dave Ramsey baby steps, but we just got to the point with my dh's new job where basic bills (rent, utilities, gas, etc.) could be covered with his pay. Once we are able to pay bills on time (probably by next month) we'll start the emergency fund. Once that is done we will start trying to settle some of the debts.

 

We're in more debt than we could *ever* pay back, though, so we are doing the best we can.

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Was it your father who was hostage to the Ugandans using him for his money?

 

How is his health? Did elder services investigate? How is your family?

 

Yes, it's still going on. The woman is still staying with my dad. He says that he had it out with her but she is still there, so I don't know what he is doing. He does that alot. He says stuff but continues the same pattern.

 

His health is a little better. Nobody has heard from services. I am somewhere in between upset and annoyed at my father.

 

It's weird. He called me up to complain about how his sisters are planning the Feast of the Immaculate Conception but that the woman was not invited. He was annoyed at that. In his mind, things only started to go wrong when he got sick this last time. Uh no, they've been going bad for YEARS and this Ugandan was it for the family. They are done with him. I told him that and he expressed surprise but not shock. He knew but didn't want to face it.

 

I told him I was on his side but that didn't mean I was for that Ugandan woman and I think she's rubbish. I told him I am going on the record as being against her like everybody else in the family.

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He needs to work with the gov't man. The IRS is fairly easy to work with. They will go over his budget and set-up a payment plan. If he has substantial assets, they will want those (but not the house or a car.)

 

He can go bankrupt. This was what a family member did when he was served a seizure order for any assets to pay a judgment from a credit card. The bankruptcy court either sets up the payment plan based on pre-set formulas or discharges the debt entirely (when no assets/low income.)

 

I'll be honest and say at this point we haven't done a whole lot. We sold everything we could (except my van) to pay the debts we could. We are getting lots of collection letters and phone calls (that we do not answer), but there isn't anything we can do.

 

We could go bankrupt, but it costs money we don't have. I would rather wait and see what we can come up with as we get back on our feet. We're loosely following the Dave Ramsey baby steps, but we just got to the point with my dh's new job where basic bills (rent, utilities, gas, etc.) could be covered with his pay. Once we are able to pay bills on time (probably by next month) we'll start the emergency fund. Once that is done we will start trying to settle some of the debts.

 

We're in more debt than we could *ever* pay back, though, so we are doing the best we can.

 

So what will you do if you think that you can never pay it back? Do you think DR's plan can get you to eradicate the debt?

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Yes, it's still going on. The woman is still staying with my dad. He says that he had it out with her but she is still there, so I don't know what he is doing. He does that alot. He says stuff but continues the same pattern.

 

His health is a little better. Nobody has heard from services. I am somewhere in between upset and annoyed at my father.

 

It's weird. He called me up to complain about how his sisters are planning the Feast of the Immaculate Conception but that the woman was not invited. He was annoyed at that. In his mind, things only started to go wrong when he got sick this last time. Uh no, they've been going bad for YEARS and this Ugandan was it for the family. They are done with him. I told him that and he expressed surprise but not shock. He knew but didn't want to face it.

 

I told him I was on his side but that didn't mean I was for that Ugandan woman and I think she's rubbish. I told him I am going on the record as being against her like everybody else in the family.

 

:grouphug:

 

Sounds like an ugly situation, but it's good that you were able to express yourself so clearly. I pray he gets free of this somehow.

 

:grouphug:

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I have no experience with the IRS, but Dave Ramsey always says to get a good tax lawyer and cut a deal. Go to his website http://www.daveramsey.com and look through some of his info. Even if you don't agree with his getting out of debt philosophies, he gives out some great advice. He also has a place where he endorses people in your area that can help you out. It's on the right hand side of the page under Endorsed Local providers.

 

HTH!

Dorinda

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He can go bankrupt. This was what a family member did when he was served a seizure order for any assets to pay a judgment from a credit card. The bankruptcy court either sets up the payment plan based on pre-set formulas or discharges the debt entirely (when no assets/low income.)

 

Debts to the governmant don't get discharged.

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So what will you do if you think that you can never pay it back? Do you think DR's plan can get you to eradicate the debt?

 

We'll settle what we can and some will simply never be paid back. Or we can go bankrupt and pay none of it back (we qualify for Chap. 7.) I don't want to do that unless we absolutely have no other choice.

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Debts to the governmant don't get discharged.

 

Right, but the bankruptcy court sets the repayment. It can be spread over 5 years that way. The IRS will absolutely work with you - years ago my family member owed $175,000+ to the IRS and they settled for $17,000. (And for the record and the defense of the family member - he had no idea the payroll taxes weren't being paid by the company he co-owned until the IRS came after him personally.)

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