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Bankruptcy, Deep in debt

Thank you so much for the advice

Hello Everyone:

Thank you so much for the advice. I’m going to try to answer some of the questions being asked:

School costs: we owe $65 dollars per child for school fees. Our oldest son has been pulled out of the regular school system and has been placed into another school to help him with his behavior. This is the school costs I was referring to. We are supposed to be paying $150 a week for this school but they are taking it down to $60 a week. It sounds great but this is still hard to come up with.

How did we get into the situation? We purchased a new home about 11 years ago. Since this was our first home and it was new construction we had to buy everything from the bottom up. We used credit cards and maxed them out very quickly. We haven’t used a credit card in years. We are literally just trying to get them paid off but doing this isn’t as easy as it sounds. Something always comes up.

Yes, 100K is a lot of money and yes, you would think we would be able to live well off of this money but we aren’t. This just proves that people who do make good money can get into trouble as well. I’m not proud of what has become of our financial situation. I know we could be living more comfortably. I also know that I have contributed to our money problems. I tend to spend more money than I need to. This is something I am working on and I am committed to changing.

I have to admit what I have been doing lately. With Christmas we have been struggling more than ever (as I am sure everyone here has experienced). We have credit card payments that are due that I am not able to pay. We are getting phone calls daily and I am avoiding them. I know this is wrong. I know I need to talk to them and try to work something out but I can’t stand the thought of doing it. Some of the people are just so rude. I decided to get a loan from this company because I like guarantees and I am a person who wants to pay all of her bills. We charged everything and it is our responsibility to pay off our debts. I think I just need to bite the bullet and start answering the phone or else I will never get a handle on our situation.

Thank you again for listening to me and for helping me work through this. I’m sorry if I offended anyone for putting down our yearly salary.

Now that someone else has broached this subject my question is on the 30K in unpaid medical bills. I would think there would have been medical insurance at a job paying 100K a year. I never had medical insurance through work but pay $300 a month for myself. My deductible is $1500 so there would be no way for me to accumulate that kind of bill.

No offense taken, Why I mentioned this is that an Oprah show I saw a few months back had high-earners who, like you, are up to their eyes in debt.

These people were earning over 100K a year, and some of them, even more.

Answer the phone. Tell them you know there’s a problem and can they help with advise? Many of them will either close the accounts, and have you pay lower, but steady payments. Others actually referred me to credit counseling and another lowered my payment for six months. Then though the payments went back up, I’d paid a lot to the principle and that helped a lot.

Having worked in the financial world, if you do consider a bankruptcy, you might suggest your husband talk to his HR department first. Some jobs can be adversly affected by a bankruptcy, although if you can prove it’s medically related it might make a difference.

Bankruptcy, Deep in debt

Re: Desperately need assistance!!!

First thing, I would advise credit counseling. The one I went with was called GreenPath (, which a local TV business reporter recommended on his newscase; I hope there’s a GreenPath office near you. They advised me that bankruptcy was not as bad as I thought it was.

Like you, I had several maxed-out cards, and ended up filing a Chapter 7 myself (to be fair, this was in 2005, right before the new laws kicked in). Hopefully your case won’t be worse than a Chapter 13. In the end, all my debts were discharged, I never had to give up or sell my house, and to my surprise, the trustee never really considered liquidating what little I have in the way of assets. Yes, I ended up losing those credit cards, and I won’t be getting any new cards for a LONG time (C7 is the nuclear war of credit), but I learned to budget and spend my money more responsibly. And getting those bills off your back is a huge relief. Like you, I have also had to cut back on a lot of things to better make ends meet.

Above all, you do NOT want to end up like the Waleskowskis, a Waterford, MI family whose father, a cop, resorted to stealing money from a drunken driving suspect in order to help pay a tax bill. Prior to this, they had been rolling their credit bills into their mortgage several times over a number of years and this apparently caught up to them. I will not give more details because it is a tragic, sick, horrible story; for those who want all the details, I suggest you look up “Michael Waleskowski” on your favorite search engine.

I agree with this post about your situation. What else can you do as a family to even cut costs more. Part with cable or satellite TV? Settle for an older used car or just one car. This makes time management or setting up rides with others a challenge, but it may have to be done. Hey, there was a generation of Americans who survived with one vehicle -especially since most women were SAHMs- like you are. My mom stayed at home until I was 13 and she never drove until I was almost 17. Other women she knew, who worked or needed to run errands on certain days, would drive their husbands to work, so they could have the family car for certain days.

Think of as many other “things” you could do without. Remembering that it’s only temporary while you work on a plan to pay off those debts. I had a really hard time at first letting go of “things” I thought were needed for my lifestyle, but after I was clearing out my debt and finally got debt free, I realized that I never needed to spend as money as I did to live a happy and fulfilled life. Filing for bankruptcy could become the absolute last solution, so do very detailed research about it.

What kind of health problems prevent you from working even part-time or flex-time for a local business? Is there anything you can do to also solve this health problem to a point where you can work to help pay off some the bills?

Keep your eye on this site and get plenty of advice and suggestions from people who’ve been there. There is a site called DollarStretcher, that I get tons of money saving ideas from quite often and I’m not even in debt anymore. Check it out and sign up for their newsletter.


BK Question

We are severely in debt (lay-off and medical bills) and have had many credit cards charge off. I am doing the best I can to pay them off. Our house is for sale and we will pay them off with the proceeds from that.

We considered filing BK but I don’t think we can because, although we are dead broke, my hubby’s Mom has money invested in various accounts in her name and my hubby’s name. As I understand it, if we were to file BK, because his name is on some of those accounts, the courts would be able to take half of whatever is in there to pay off our debt. Does anyone know if this is correct? If so, then we will be unable to file for BK because of this. What a pain. The one light that we could see to get back on track and I don’t think we’ll be able to do it.

I appreciate any advice or suggestions anyone may have.


Bankruptcy almost destroyed me!

Hi there Guys.

I’ve been reading a lot of your postings just now about financial problems and bankruptcy, and a number of them really remind me of my experiences. Been there, got the t-shirt! I know that a lot of you at present must be feeling very low and depressed, but take it from me, things will get better!

I was born in the US, but moved to the UK when I was 15 with my parents, as my father was forced to move with work. 3 years later we moved back to the US full time, and that’s were my money problems really began. 7 years later, I was in a horrible mess financially, and it’s only been in the last 3 months that things have improved for me!

To be honest I was very low. And I felt really frustrated as I had no clue what most of the ‘bankruptcy terms’ meant! The more I tried to get advice on the matter, the more I was drowning in a sea of procedures I had no clue about (chapter 13 or 7, how many years does it really take, etc!!)! I helped me a lot by reading those official bankruptcy leaflets you can get. It may or may not help you.

There area a few websites also which are really good. I can’t remember the address of the one I visited all the time at the moment though, but i’ll have a look in my folders later and get back to you with the address.

But, as I said before, you can come through this experience in your life a better and stronger person. Please feel free to contact me if you want. I know what your going through!

thanks for the encouragement, i am very depressed now sue to my credit card debts and burdensome interest charges, our APR is 42% my net earnings is not enough even for our very basic needs , how can i reduce my almost US$15,000 debt.