Prayer request and Personal ? but I need advice on filling for bankruptcy

[A home for their hearts]

I know this is a very personal question so feel free to pm me. I'm even embarrassed asking about it but I'm trying to put my pride aside to get the information I need. We are just really going back and forth about it. We are trying to do what we can to work with some of our creditors to lower interest rates so we can get lower monthly payments, some will work with us others will not. We have to keep moving bills around so we have money for groceries, right now as it is we can even pay everybody every month before we are in the red. One of our vehicles was repoed last night because we simply couldn't pay the bill. Today has been a very sad day, it's all I can do to not just sit down and cry. I would really appreciate some prayers.

[missplacedalaskan]

I don't know anything about this.

 

But I can offer lots of :grouphug: and prayer.

[shell in SC]

I'm sorry you're going through this. . .I have no advice, but I'll be praying!

 

More hugs!

[Heather in the Kootenays]

:grouphug::grouphug:

[lwilliams1922]

:grouphug:

[CookieMonster]

What a terribly difficult time for you!

 

I'm so sorry. :grouphug:

 

Have you tried googling "filing for bankruptcy"? There are tons of things to read on those search terms. Not that I would want recommend you do anything online, but reading about it might be helpful. I would recommend, after you collect some information and feel more comfortable, speaking with an attorney (if you still desire to file).

[Scarlett]

I don't know if you should file or not. But please hop over to http://www.livinglikenooneelse.com/forum/

 

It is a board full of people following Dave Ramsey's plan. You can log on and ask for very very specific advice and they will help you. They are great. They will ask you for a budget and list of bills and tell you what they think you should do.

 

Please try it. They are very helpful.

 

And :grouphug: to you. I am so sorry you are facing this.

[Joanne]

I'm not sure what you want to know?

 

I'd like to help and I filed bankruptcy after my divorce. It was after the "new" changes that made filing more complicated.

 

You really need a bankruptcy attorney to go there. Do some basic reading from a google search.

[Testimony]

I pmed you.

 

I am definitely praying for you. :grouphug:

 

Blessings,

Karen

http://www.homeschoolblogger.com/testimony

[melissel]

I don't know if you should file or not. But please hop over to http://www.livinglikenooneelse.com/forum/

 

It is a board full of people following Dave Ramsey's plan. You can log on and ask for very very specific advice and they will help you. They are great. They will ask you for a budget and list of bills and tell you what they think you should do.

 

Please try it. They are very helpful.

 

And :grouphug: to you. I am so sorry you are facing this.

 

Scarlett's right, but also be prepared to go in there with a thick skin, because they won't whitewash anything for you. They'll be VERY frank with you, even if you don't want to hear what they have to say. It's a very helpful forum, though--I've learned a lot there and go back and visit whenever I need a kick back in line. They'll most likely tell you that you don't have to and shouldn't file for bankruptcy, that there's always a way around that.

 

You really need a bankruptcy attorney to go there. Do some basic reading from a google search.

 

I was thinking the same thing, get yourself a good attorney. See if you can get a recommendation or two. :grouphug::grouphug::grouphug: to you. I really hope you can turn everything around.

[A home for their hearts]

I'm not sure what you want to know?

 

I'd like to help and I filed bankruptcy after my divorce. It was after the "new" changes that made filing more complicated.

 

You really need a bankruptcy attorney to go there. Do some basic reading from a google search.

 

If we do end up filling for bankruptcy we will definitly get an attorney. Right now we are just so bad off we don't even have the money to pay for it. I know with all the new changes we would probably not qualify for chapter 7. My dh thinks if all bankruptcy is going to do is talk to our creditors to lower interest rate and work out a monthly payment than what's the point, we can do that, and we are we just owe so much it doesn't seem like we will ever get out from under it.

[Scarlett]

If we do end up filling for bankruptcy we will definitly get an attorney. Right now we are just so bad off we don't even have the money to pay for it. I know with all the new changes we would probably not qualify for chapter 7. My dh thinks if all bankruptcy is going to do is talk to our creditors to lower interest rate and work out a monthly payment than what's the point, we can do that, and we are we just owe so much it doesn't seem like we will ever get out from under it.

 

Did you go over to LLNOE? They can give you hope. A plan. The stress alone can make you not think straight.

[jejily]

I don't know if you should file or not. But please hop over to http://www.livinglikenooneelse.com/forum/

 

It is a board full of people following Dave Ramsey's plan. You can log on and ask for very very specific advice and they will help you. They are great. They will ask you for a budget and list of bills and tell you what they think you should do.

 

Please try it. They are very helpful.

 

And :grouphug: to you. I am so sorry you are facing this.

 

 

I second that. Also, check out Dave Ramsey's site, which has tons of great information. http://www.daveramsey.com/ When you get there, click on the yellow box near the top where it says, "New Here?" That will get you started.

 

Bankruptcy CAN be avoided. I strongly urge you to read up on Dave Ramsey's financial planning advice. He's not the end-all-be-all, and other financial advisers offer similar advice, but it's a place to start.

 

I wish I had more time to type up a response, but one thing you do is this.

 

Make a monthly budget. Determine how much income you have coming in in an average month.

 

Take care of your "four walls" first -- determine how much money is needed to pay your:

 

 

1. rent/mortgage (and insurance)

 

2. groceries

 

3. basic utilities (the essentials -- electric, water, gas, phone -- not the nice-to-haves like satellite TV or cell phones)

 

4. transportation (car payment*, fuel, insurance)

 

5. clothing (kids grow, it's a fact of life - set aside some money every month for this)

 

 

 

Also set aside a small amount of "blow" money each month, like $50 or something, because chances are you're going to "blow it" at least once or twice, or just need to get out and do something for yourself, like get a manicure. Setting aside a reasonable amount of money each month for these things makes sticking to an otherwise strict budget much easier, and is more realistic.

 

When you've eliminated all "extras" (like dining out, cell phones, going to movies, etc.), see what's left. For example, let's say that, after paying all these essential bills and setting aside some blow money, you have $700 left.

 

Now, you have creditors to pay - Visa, MasterCard, Discover, Home Depot, whatever. You have to divide up the $700 between each of these creditors.

 

First, add up the TOTAL OWED for each account.

 

Let's say it's like this:

 

Visa = $9000

MC = $2000

Home Depot = $600

Discover = $3400

TOTAL OWED = $15,000

 

OK, then you determine what percentage of the total owed is owed to each creditor. In this example:

 

Visa = 60%

MC = 13%

Home Depot = 4%

Discover = 23%

 

So, 60% of your $700 ($420) goes to Visa, 13% ($91) goes to MC, etc.

 

What happens if that figure is LESS than the minimum payment owed?

 

Then, you write a letter to the creditor. You lay out your bare bones budget, tell them that their debt represents 13% of your overall debt, and of the $700 available monthly cash, 13% = $91, and that's all you'll be able to send for awhile. Dave has examples of letters you can write in his books.

 

If extra cash happens to be freed up in a month (for example, your heating bill wasn't as high as you thought, etc.), send it to the card with the SMALLEST BALANCE first - in this case, Home Depot -- until that card is paid off. Then, the amount you were sending to Home Depot goes to the next smallest debt -- in this case, MasterCard. And so on.

 

Forget about interest rates. Go smallest debt to largest debt. You'll gain traction faster that way, and it will give you the momentum you need to keep going.

 

Check out Dave Ramsey's books from the library: The Total Money Makeover and Financial Peace.

 

Good luck, and :grouphug:.

 

 

*You may need to sell the car and buy a beater, if your car payment is excessive. If you have multiple vehicles, determine if you can get by with just one for awhile. If you have "toys" like a motorcycle or boat, sell them.

[Scarlett]

Scarlett's right, but also be prepared to go in there with a thick skin, because they won't whitewash anything for you. They'll be VERY frank with you, even if you don't want to hear what they have to say. It's a very helpful forum, though--I've learned a lot there and go back and visit whenever I need a kick back in line. They'll most likely tell you that you don't have to and shouldn't file for bankruptcy, that there's always a way around that.

 

Yes...this is all true. They do not pull any punches. They aren't unkind...just very very blunt. And they generally do not advocate bankruptcy, but I'm sure there are sometimes it IS the only answer.

 

I think what they would tell her at this point is to sit down and identify the 4 walls...and then go down the list of debts each month pay what minimums they can until the money is gone. After that the next people dont get paid. They can threaten all they want, but you can't not feed your children in order to pay a cc. In time you can deal with it...but there is a definite system for bailing yourself out and it doesn't require juggling money each month to buy groceries.

[Scarlett]

I second that. Also, check out Dave Ramsey's site, which has tons of great information. http://www.daveramsey.com/ When you get there, click on the yellow box near the top where it says, "New Here?" That will get you started.

 

Bankruptcy CAN be avoided. I strongly urge you to read up on Dave Ramsey's financial planning advice. He's not the end-all-be-all, and other financial advisers offer similar advice, but it's a place to start.

 

I wish I had more time to type up a response, but one thing you do is this.

 

Make a monthly budget. Determine how much income you have coming in in an average month.

 

Take care of your "four walls" first -- determine how much money is needed to pay your:

1. rent/mortgage (and insurance)

2. groceries

3. basic utilities (the essentials -- electric, water, gas, phone -- not the nice-to-haves like satellite TV or cell phones)

4. transportation (car payment*, fuel, insurance)

5. clothing (kids grow, it's a fact of life - set aside some money every month for this)

 

Also set aside a small amount of "blow" money each month, like $50 or something, because chances are you're going to "blow it" at least once or twice, or just need to get out and do something for yourself, like get a manicure. Setting aside a reasonable amount of money each month for these things makes sticking to an otherwise strict budget much easier, and is more realistic.

 

When you've eliminated all "extras" (like dining out, cell phones, going to movies, etc.), see what's left. For example, let's say that, after paying all these essential bills and setting aside some blow money, you have $700 left.

 

Now, you have creditors to pay - Visa, MasterCard, Discover, Home Depot, whatever. You have to divide up the $700 between each of these creditors.

 

First, add up the TOTAL OWED for each account.

 

Let's say it's like this:

 

Visa = $9000

MC = $2000

Home Depot = $600

Discover = $3400

TOTAL OWED = $15,000

 

OK, then you determine what percentage of the total owed is owed to each creditor. In this example:

 

Visa = 60%

MC = 13%

Home Depot = 4%

Discover = 23%

 

So, 60% of your $700 ($420) goes to Visa, 13% ($91) goes to MC, etc.

 

What happens if that figure is LESS than the minimum payment owed?

 

Then, you write a letter to the creditor. You lay out your bare bones budget, tell them that their debt represents 13% of your overall debt, and of the $700 available monthly cash, 13% = $91, and that's all you'll be able to send for awhile. Dave has examples of letters you can write in his books.

 

If extra cash happens to be freed up in a month (for example, your heating bill wasn't as high as you thought, etc.), send it to the card with the SMALLEST BALANCE first - in this case, Home Depot -- until that card is paid off. Then, the amount you were sending to Home Depot goes to the next smallest debt -- in this case, MasterCard. And so on.

 

Forget about interest rates. Go smallest debt to largest debt. You'll gain traction faster that way, and it will give you the momentum you need to keep going.

 

Check out Dave Ramsey's books from the library: The Total Money Makeover and Financial Peace.

 

Good luck, and :grouphug:.

 

 

*You may need to sell the car and buy a beater, if your car payment is excessive. If you have multiple vehicles, determine if you can get by with just one for awhile. If you have "toys" like a motorcycle or boat, sell them.

 

Yes. This is what my previous post was trying to say but Jejily has more details and this is EXACTLY what you can do to get yourselves out of this mess

[A home for their hearts]

Thanks for your reply. I do want to add that we only had two vehicles and one was repoed last night. It was leased, and we don't have the money to get it back, if we had had the money we wouldn't have gotten so far behind on the payment and it wouldn't have been repoed to begin with. As for any other 'extras' we did away we that a long time ago. We don't go anywhere, we don't do anything. I need to buy pants because I lost a lot of wait and none of mine fit me anymore but I won't be getting any since we are flat out broke. We really are just living very bare bones right now.

 

I second that. Also, check out Dave Ramsey's site, which has tons of great information. http://www.daveramsey.com/ When you get there, click on the yellow box near the top where it says, "New Here?" That will get you started.

 

Bankruptcy CAN be avoided. I strongly urge you to read up on Dave Ramsey's financial planning advice. He's not the end-all-be-all, and other financial advisers offer similar advice, but it's a place to start.

 

I wish I had more time to type up a response, but one thing you do is this.

 

Make a monthly budget. Determine how much income you have coming in in an average month.

 

Take care of your "four walls" first -- determine how much money is needed to pay your:

1. rent/mortgage (and insurance)

2. groceries

3. basic utilities (the essentials -- electric, water, gas, phone -- not the nice-to-haves like satellite TV or cell phones)

4. transportation (car payment*, fuel, insurance)

5. clothing (kids grow, it's a fact of life - set aside some money every month for this)

 

Also set aside a small amount of "blow" money each month, like $50 or something, because chances are you're going to "blow it" at least once or twice, or just need to get out and do something for yourself, like get a manicure. Setting aside a reasonable amount of money each month for these things makes sticking to an otherwise strict budget much easier, and is more realistic.

 

When you've eliminated all "extras" (like dining out, cell phones, going to movies, etc.), see what's left. For example, let's say that, after paying all these essential bills and setting aside some blow money, you have $700 left.

 

Now, you have creditors to pay - Visa, MasterCard, Discover, Home Depot, whatever. You have to divide up the $700 between each of these creditors.

 

First, add up the TOTAL OWED for each account.

 

Let's say it's like this:

 

Visa = $9000

MC = $2000

Home Depot = $600

Discover = $3400

TOTAL OWED = $15,000

 

OK, then you determine what percentage of the total owed is owed to each creditor. In this example:

 

Visa = 60%

MC = 13%

Home Depot = 4%

Discover = 23%

 

So, 60% of your $700 ($420) goes to Visa, 13% ($91) goes to MC, etc.

 

What happens if that figure is LESS than the minimum payment owed?

 

Then, you write a letter to the creditor. You lay out your bare bones budget, tell them that their debt represents 13% of your overall debt, and of the $700 available monthly cash, 13% = $91, and that's all you'll be able to send for awhile. Dave has examples of letters you can write in his books.

 

If extra cash happens to be freed up in a month (for example, your heating bill wasn't as high as you thought, etc.), send it to the card with the SMALLEST BALANCE first - in this case, Home Depot -- until that card is paid off. Then, the amount you were sending to Home Depot goes to the next smallest debt -- in this case, MasterCard. And so on.

 

Forget about interest rates. Go smallest debt to largest debt. You'll gain traction faster that way, and it will give you the momentum you need to keep going.

 

Check out Dave Ramsey's books from the library: The Total Money Makeover and Financial Peace.

 

Good luck, and :grouphug:.

 

 

*You may need to sell the car and buy a beater, if your car payment is excessive. If you have multiple vehicles, determine if you can get by with just one for awhile. If you have "toys" like a motorcycle or boat, sell them.

[LisaKinVA]

I've been there. We actually waited a year longer than we should have, based upon our circumstances.

 

We gave up our house, and moved into my parent's unfinished basement.

We gave up one car. We gave up a lot more to try to avoid bankruptcy. However, our income dropped from $120k a year to $24k a year, and one creditor simply would NOT work with us. The day the sherriff showed up on the doorstep with a court summons for a judgement hearing, we called the attorney and began bankruptcy proceedings. (I'd like to note, that that particular creditor was one of the major proponets of the new bankruptcy laws and also wound up out of business themselves. Vengence is mine... :D)

 

We contacted Christian counseling organizations (Larry Burkett), debt service organizations and *all* of them told us that, based upon where we were, and what we were facing, bankruptcy *was* the only option.

 

Shaun was working 2 jobs (he couldn't work an evening job, due to his day-time schedule, but worked every day off and weekends). I was watching the 3 (at that time) kiddos. One of the stipulations for being allowed to live in the basement was that I was NOT to go to work, so I didn't. Of course, what I would have made at my job (at that time) wouldn't have left much after paying for daycare for 3 small children anyway).

 

It's now been 5 years. It hasn't been easy. It's something we never wish to repeat, and have avoided making the same mistakes.

 

It's also important to note, that the new bankruptcy laws haven't worked the way companies such as MBNA wished... mainly because, the majority of people declaring bankruptcy weren't trying to "game" the system, but instead were in such dire circumstances there was no "payment plan option" that would be available for them.

 

Only a bankruptcy attorney can tell you for certain where you would fall; HOWEVER, most will give you a FREE consultation -- and ours charged about $200 total for the whole filing. He didn't actually file until we had him paid in full, but he did take pre-payments.

 

If things are as bad as you indicate -- you probably don't have to worry about making payments.

[Mandamom]

first, I'm so sorry you are dealing with this. I have been where you are and am actually there now.

 

First, don't be in a big rush to file bankruptcy. My dh filed a few years ago to prevent a foreclosure sale on our house from happening (we waited until 1 week before the courthouse sale date was scheduled) and we were able to keep the house. We filed Chapter 13, worked through the debt payments and got out of bankruptcy. Don't file because the creditors threaten you -- wait until they actually do something.

 

Second, get on a budget if you aren't already and read The Total money makeover by Dave Ramsey or one of Suze orman's books for some good financial advice. You can get them from most libraries. Go visit Daveramsey.com and click on http://www.daveramsey.com/tdrs/ and start listening to his show. If you listen to it for an hour per week you can decide if it is for you.

 

Third, if you are in an "income crisis" (as DAve Ramsey refers to it) see what you can do to increase your income. Can your dh work more, sell some things on Craigslist/ebay or other local yardsale e-mail list? Can you work outside the home?

 

Fourth, consider if you need to sell your house. If there's a chance that you can't make the payments on it you'll be better off doing a "short" sale (hopefully without recourse) rather than letting it go to foreclosure.

 

Fifth, your goal right now is to keep your house, keep some kind of transportation, utilities (and cable doesn't count :) and food in the house. After that you'll have to prioritize the rest of the creditors. For example, you'll want to make sure that your doctor's office gets paid so that you can still visit the doctor if you need to. A credit card might go on the bottom of the list.

 

If you can't pay the credit cards don't. What they'll do is call you and harass you and you can tell them that you don't have the money and they'll make all kinds of threats and you still don't pay. In time, they'll sue you -- eventually. by then hopefully you'll have the rest of your finances in order and you can make an offer to them and see if they'll accept it. Yes, your credit score will be messed up for a while but still better than if you file bankruptcy. I'm not saying don't pay the credit cards if you have the money, but if you can't keep food and lights and are in danger of losing the house than you might have to put them off for now. So, use your have caller ID or see if someone on freecycle.com has an answering machine you can use and teach your kids to use it.

 

Regarding your pants -- post on freecycle or look at your local thrift shops for some pants. I haven't bought clothes from any other kind of stores in years and can't imagine going back. I'm working now and the thrift shop is where I buy all of my clothes.

 

I'm actually currently living exactly how I just explained -- dh hasn't been employed for 8 months and we're living below the poverty line.

 

We aren't considering bankruptcy now but are trying to get a job for dh and otherwise get a plan in place to pay back every cent we owe. We are optimistic things will work out and if they don't we'll know we have tried everything we know.

 

Good luck!!

[A home for their hearts]

Thank you so much everyone for your kids words and prayers. It means a lot too me.

[Joanne]

I've been there. We actually waited a year longer than we should have, based upon our circumstances.

 

I want to add.........some more opinion and perspective.

 

I believe in many of Dave's principles, ideas and planning tools. I believe he has helped many families, individuals, kept families from divorce and actually served the US economy in a positive way.

 

I think his followers are informed, impassionioned and intelligent.

 

But. Dave Ramsey filed bankruptcy. He is now quite comfortable. I do not begrudge him either of those circumstances; but filter his now advice through that information.

 

I've found that there can be a great deal of hurtful, unnecessary *shame* applied towards people considering bankruptcy; it's often applied in addition to shame existing in the individuals already concerning the issue.

 

Here's the bottom line truth for financial health from a period of challenge:

 

You need to change the behaviors that created (or helped to create) the mess. Each situation is different, and each family's financial leaks are unique in terms of specifics, patterns and history. There *are* some commonalities such as eating out, convenience, valuing trends, seeking security through material comort and mis use of credit.

 

If, as the OP's post suggests, nothing is left to sell, cut, change AND the beahvior that was voluntary (vs. say medical issues) has been changed, bankruptcy is a valid option. Period.

 

It's not the easy way out by any means. Like divorce, it's often the last option after many months (or years) of work, change, worry and axiousness in which the individuals try to avoid it. It's never ideal; but it's often the best of the worst choices for people.

 

I tried *for years* to debt snowball. Before I became a single mom of 3, I had been trying. After that, there was no.way.to.do.it. I had sold all extra curriculum, my jewelry, my vintage and antique coca cola memorabelia collection. I had pay minimums and tried to roll over for months, months, months. I purchased clothes used and on sale. No meat entered this house on "sale" only; it was all on sale AND clearance and looking grey.

 

OP, if you have prayerfully searched your lives and made the changes to sustain the benefits of a financial fresh start and truly can't get out from under - file and don't feel the need to invite more shame, unkindness and even hypocrisy or lack of empathy into your circle. Your resources (emotional and otherwise) are already drained.

[Scarlett]

But. Dave Ramsey filed bankruptcy. He is now quite comfortable. I do not begrudge him either of those circumstances; but filter his now advice through that information.

 

I've found that there can be a great deal of hurtful, unnecessary *shame* applied towards people considering bankruptcy; it's often applied in addition to shame existing in the individuals already concerning the issue.

 

OP, if you have prayerfully searched your lives and made the changes to sustain the benefits of a financial fresh start and truly can't get out from under - file and don't feel the need to invite more shame, unkindness and even hypocrisy or lack of empathy into your circle. Your resources (emotional and otherwise) are already drained.

 

It is true that DR filed bankruptcy. I believe he also repaid all his debts once he was able to even though he wasn't required to by law.

 

Anyway, I just wanted to say I hope *I* didn't give the impression I think it is shameful to file for bankruptcy if need be. My only issue with bankruptcy is that you still get put on a repayment plan and so it doesn't always change the bottom line much. But I really don't know much about it...and I do hope the OP checks out all her options.

 

I think we can't really say if bankruptcy would be best or not without knowing a bunch of details she probably doesn't want to reveal here. That is why I suggested she go over to the free Dave Ramsey board (livinglikenooneelse)...they can walk her through the process and then if there is no other way she will be able to clearly see she has done all she can do.

[jejily]

 

Anyway, I just wanted to say I hope *I* didn't give the impression I think it is shameful to file for bankruptcy if need be.

 

Ditto. Like Scarlett, my biggest reason for advising the OP to explore all other options first is that bankruptcy doesn't necessarily relieve the financial burden; sometimes, it just prolongs it. Also, even after bankruptcy, credit card sharks will sometimes "sell" your bad debt to collectors, who will continue to HOUND you mercilessly to "pay off" debt that a bankruptcy judge has already written off.

 

Watch the documentary "Maxed Out" to see what I'm talking about.

 

I think we can't really say if bankruptcy would be best or not without knowing a bunch of details she probably doesn't want to reveal here. That is why I suggested she go over to the free Dave Ramsey board (livinglikenooneelse)...they can walk her through the process and then if there is no other way she will be able to clearly see she has done all she can do.

 

:iagree:

[jejily]

Here's one thing I suggest, if you really think you cannot possibly pull yourself out of this without help.

 

Go to Consumer Credit Counseling Services, or CCCS. There is another credit consolidation agency that uses those same initials (CCCS), but they are NOT the people you want to go to. Be sure you go ONLY to Consumer Credit Counseling Services.

 

Dave Ramsey does not advocate using a credit consolidation service, but says if you must, this is the one to use. Long before we met DR, we used CCCS, and it saved us.

 

They have the clout to work with creditors that you don't have.

 

Start there, before you go to a bankruptcy lawyer.

[Amy in NH]

About 10 years ago, my dh had a business that failed. His partners walked and left him holding the bag. He was working for FREE to finish jobs that had already been started/advances paid, and other rich jerks owed him over $40,000 for jobs completed, but they had expensive lawyers to keep from paying and we couldn't afford a pot to pi$$ in. So, he filed Ch 13 Reorganization to keep the house until we were able to sell it. We paid off some debt with the profits - mainly to our parents, from whom we had borrowed money to keep the house while going through Ch13. His business closed, we moved to be closer to family, he got a good job that paid $6 less per hour. Even with overtime we were able to make our regular "walls", but not keep on top of the CCs in *my* name that had paid for the long-distance move. We were living very frugally (started out in friends/family basement for 2 months before moving with 3 children in a 650 sq ft apt, no frills). We wanted to pay off our CCs, but they wouldn't work with me *at all*. I went to CCCS to see if we could work out a payment plan, they told me that there was nothing that could be done with our budget (income did not exceed frugal living expenses) and actually advised me to file bankruptcy (Ch7?). That was before the law changed. We waited 4 months, until we got our tax refund, to be able to afford to file. It was scary, the lawyer was great. We have been able to remain debt-free since then, and we bought a house last year.

We do occassionally (maybe once per year) get a call from some scumbag debt-collector who has bought up our bankruptcy debt, and I just refer them to my lawyer.

 

It was horrible, shameful, terrifying to go through. I would only wish it on my worst enemy ;) I'm sorry that's where you are right now. My advice is to talk to CCCS, get a free consultation from a good lawyer, and try to start over.

 

I'll be thinking of you...

[Dayle in Guatemala]

:grouphug:

 

I will be praying. I'm so sorry you are going through all of this.:grouphug:

[Joanne]

My only issue with bankruptcy is that you still get put on a repayment plan and so it doesn't always change the bottom line much. But I really don't know much about it...and I do hope the OP checks out all her options.

 

That's not accurate. It depends on which bankruptcy you file.

 

I think we can't really say if bankruptcy would be best or not without knowing a bunch of details she probably doesn't want to reveal here. That is why I suggested she go over to the free Dave Ramsey board (livinglikenooneelse)...they can walk her through the process and then if there is no other way she will be able to clearly see she has done all she can do.

 

I am a member there, I respect the board and info very much. There are aspects, however, to DR and DR followers that I find less than healthy and helpful. Including reactions to people who see bankruptcy as an option or people who don't wholeheartedly, without reservation endorse DR. ;)

 

 

 

 

 

Ditto. Like Scarlett, my biggest reason for advising the OP to explore all other options first is that bankruptcy doesn't necessarily relieve the financial burden; sometimes, it just prolongs it. Also, even after bankruptcy, credit card sharks will sometimes "sell" your bad debt to collectors, who will continue to HOUND you mercilessly to "pay off" debt that a bankruptcy judge has already written off

 

This is not true. It's illegal for companies to do so and they operate under a "cease and desist" order from court as soon as a bankruptcy is filed. It *is* true in the months (or years) before bankruptcy; even on accounts that have been aged, "written off" or closed.

 

I admit I am sensitive to the "check all your options" advice that is often given. The truth as I've observed is that a person considering bankruptcy has spent hours of sleepless nights in a stressed marriage checking options, praying, worrying, crying. When the "check all your options" advice is given in combination with suggestions for people to participate with people who are harsh, unkind or not understanding should a person decide to file bankruptcy it does nothing to assist them during an already awful, horrible, no good time in their lives.

 

Again, I believe in DR's approach to most things financial. I don't, however, believe in him wholeheartedly and I have concerns about some of the following that has grown up around him.

[LisaKinVA]

Ditto. Like Scarlett, my biggest reason for advising the OP to explore all other options first is that bankruptcy doesn't necessarily relieve the financial burden; sometimes, it just prolongs it. Also, even after bankruptcy, credit card sharks will sometimes "sell" your bad debt to collectors, who will continue to HOUND you mercilessly to "pay off" debt that a bankruptcy judge has already written off.

 

Watch the documentary "Maxed Out" to see what I'm talking about.

 

 

Actually, that is ILLEGAL. If someone is coming after you for a discharged debt they cannot legally try to collect it. If they do, one phone call to your attorney will clear it up, because they can get into SERIOUS trouble for that.

 

Under the law (old or new), once the initial paperwork for a bankruptcy begins, NO COLLECTION ACTIVITIES can take place. The creditors are instructed BY THE COURT to cease and desist. The only persons the creditor may contact are either the attorney on record, or the court bankruptcy person in charge of the case. They can NOT contact the person declaring bankruptcy.

[Tutor]

Have you talked to a counselor at a consumer credit counseling place? They can help you with your budgeting and get you in contact with people to help you with filing if you need it. There are some financial counseling ministries that I know of that are free and can be very helpful. Crown Ministries is the one that comes to mind. I have called them for advice in the past, and they have been very helpful.