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Thread: Financial Ruin--HELP!!!

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    Veteran Member tennisqt's Avatar
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    Default Financial Ruin--HELP!!!

    I'm at a loss and don't know what to do anymore. I've always made my payments on time up until May. It's finally come to the point where I'm thinking about filing for bankruptcy. I don't know if I should file (and I assume hire a lawyer) or if I should look into credit counseling. I don't even know how to file. I’m thinking about contacting Consumer Credit Counseling Services, In Charge Debt Solutions, and National Foundation of Credit Counseling. Does anyone have any experience with these companies?

    The amount that I owe is ridiculous and I take full responsibility. I started accumulating debt in college and now I'm 23. Below is how much I owe:

    Medical = 1,170
    Loan = 11,000
    Card 1 = 7,113
    Card 2 = 5, 112
    Card 3 = 2,100
    Card 4 = 2,100
    Card 5 = 1,935
    Card 6 = 1,423
    Card 7 = 1, 275
    Card 8 = 450.42
    Card 9 = 262
    Card 10 = 254


    I had this great job up until March when I got pneumonia and then I fractured a rib due to bronchitis. My health was horrible and I had to resign. Of course, I didn't accumulate all of this debt these past few months, but my job did allow me to make payments on all of my cards. I originally took out the loan to pay down all of my cards, but I've been unemployed (not including dancing) since then and I've been using the money from the loan to pay my cards, rent, etc. Dancing also hasn't been going so well lately, but it's not just the club that I work at, all of the clubs are in a slump lately. The only girls that are doing well, are the girls that have been at the club the longest.

    When I lost my job I also lost my health insurance so now I have to pay out of pocket ($381 per month). My health insurance is so expensive and that's the best plan I can get because with pneumonia and my other illnesses (which I've had since December) I was at the doctors at least every week.

    Any advice would be appreciated. If you read everything, I'm sure it was all jumbled--I hope it made sense.
    "Maybe some women aren't meant to be tamed. Maybe they're supposed to run wild until they find someone, just as wild, to run with." -Sex and the City

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    Banned Melonie's Avatar
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    Default Re: Financial Ruin--HELP!!!

    As long as the amount of 'assets' you own ( i.e. house, car, etc.) is less than the amount of money you owe in total, probably the best way to address your situation is as follows ...

    A. get a statement from your doctor regarding your pneumonia and other health problems preventing you from working at a full time 'straight' job

    B. Apply for social welfare benefits specifically MedicAid

    C. have the social welfare agency help you file for Chapter 7 bankruptcy

    D. have the social welfare agency set you up in subsidized public housing, with subsidized utility bills

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    Banned i.breathe.in's Avatar
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    Default Re: Financial Ruin--HELP!!!

    what she said. bankruptcy is a lot easier then you think it is. also make sure you dont use your cards for anything or make any payments for 90 days before you file or it looks fishy.

    i filed 13 and its the best thing i could have ever done. aside from not getting myself into he mess in the first place.

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    Banned Melonie's Avatar
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    Default Re: Financial Ruin--HELP!!!

    ^^^ basically, my advice was based on the assumption that Tennisqt's credit rating is already in the toilet, and that her health problems and debt levels prevent her from ever digging out of the situation she is in. As such, she might as well take the option that WILL dig her out from under the fastest i.e. Chapter 7 bankruptcy plus cutting her future living / medical expenses via signing up for Medicaid and other social welfare programs. While the bankruptcy will poison her credit rating in the short term, in the long term it will actually leave her in a better situation to rebuild from.

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    Default Re: Financial Ruin--HELP!!!

    Quote Originally Posted by Melonie View Post
    ^^^ basically, my advice was based on the assumption that Tennisqt's credit rating is already in the toilet, and that her health problems and debt levels prevent her from ever digging out of the situation she is in. As such, she might as well take the option that WILL dig her out from under the fastest i.e. Chapter 7 bankruptcy plus cutting her future living / medical expenses via signing up for Medicaid and other social welfare programs. While the bankruptcy will poison her credit rating in the short term, in the long term it will actually leave her in a better situation to rebuild from.

    im confused, i was AGREEING with you...

    also, if your cards are still usable, take out 1200 in cash advances now if you can, and then not use the cards for 90 days then file. you can then use that 1200 for filing bankruptcy. its more expensive then it used to be.

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    Banned Melonie's Avatar
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    Default Re: Financial Ruin--HELP!!!

    ^^^ I was trying to emphasize the point that, unlike yourself, TennisQT is probably eligible for 100% discharge of her debts via being able to file Chapter 7 bankruptcy rather than Chapter 13 ... and that given her medical problems her financial problems and inability to work a full time job provide a 'fortunate' means for her to obtain 'free' medical insurance via applying for MedicAid !

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    Veteran Member tennisqt's Avatar
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    Default Re: Financial Ruin--HELP!!!

    Thanks for all of your help. Sorry, maybe I wasn't clear, but I'm healthy now. I was terribly sick from December through March with pneumonia and then I had bronchitis and other respiratory related issues up until the end of May. In May I also fractured my rib (due to the bronchitis), which is what prevented from me from being able to dance. And then I also strained my back several times on top of that.

    My housing is actually taken care of, as my parents have been paying my rent ($1000 per month) and health insurance. They of course have no idea just how deep my financial mess is and I'm going to be moving back home for the time being next month. And of course I have absolutely no intention of telling them how much I owe or that I've filed.

    As far as my cards go, I cut them up a couple of months ago. I don't ever want to use another credit card.

    With my time off I've been applying for jobs, but the market is so horrible now that I haven't had any luck.

    I guess the next step is to hire a lawyer. I don't even know where to start with finding a good lawyer...the yellow pages?
    "Maybe some women aren't meant to be tamed. Maybe they're supposed to run wild until they find someone, just as wild, to run with." -Sex and the City

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    Default Re: Financial Ruin--HELP!!!

    If I were you and you can work now, I would NOT go with the bankrupt option. No apartments, no home loans, no car loans, no nothing with fucked up credit.

    The shit that they will offer you is even more toxic than what you are dealing with now.

    Pay off the small stuff and keep chipping away at it. Some of these are pretty small... knock them out and you will begin to feel emotional relief.

    Loans are quickly returning to the days of "bricks and wheels" for the smart people.

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    Veteran Member tennisqt's Avatar
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    Default Re: Financial Ruin--HELP!!!

    What are "bricks and wheels"? I've never heard that expression before. I was able to make payments on the smaller cards, but if I were to make the minimum payments on the rest of the cards I would need $2,476 tomorrow. I already have the collection agencies calling me, as I haven't made payments on some of the cards for the best two months. I've already gone through my entire savings account too. I just switched cars. I was paying nearly $600 a month on gas just driving to and from work.
    "Maybe some women aren't meant to be tamed. Maybe they're supposed to run wild until they find someone, just as wild, to run with." -Sex and the City

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    Senior Member Blackstone's Avatar
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    Default Re: Financial Ruin--HELP!!!

    Go get credit counselling. You have to get counselling before you file ch. 7, so might as well get it out of the way. You're not in that bad shape. You have roughly 23k in credit card debt. If you can consolidate at a manageable rate (say 15%?), you would only need to pony up 4k per year to cover the interest plus a token bit of principal. If you talk to your credit card companies and get counselling, they will be extremely willing to put you on a realistic plan: if you file ch 7, they essentially get nothing.

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    Default Re: Financial Ruin--HELP!!!

    I think this debt is doable... have you considered a non-bankruptcy proposal?
    Oh Canada, we stand on cars and freeze...

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    Default Re: Financial Ruin--HELP!!!

    if collections is already calling your credit is in the shitter. you may as well file. its not nearly as hard or scary or bad as people make it out to be that have never been through it.

    if your credit is already bad theres no point in not filing.

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    Veteran Member tennisqt's Avatar
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    Default Re: Financial Ruin--HELP!!!

    Thanks for the advice. I had my credit checked and apparently out of 20 services only three are considered bad. I find that odd considering that I'm being called by a number of different collection agencies.
    "Maybe some women aren't meant to be tamed. Maybe they're supposed to run wild until they find someone, just as wild, to run with." -Sex and the City

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    Default Re: Financial Ruin--HELP!!!

    did you check all three beuros and your fico score?

    it may not be a lot of companies calling it may be the same 3, but they can call sometimes up to 7 times a day...its frusterating at best.

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    God/dess Bunny's Avatar
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    Default Re: Financial Ruin--HELP!!!

    Consumer Credit Counseling is legit and it's free to just go see how they can help you. I don't know about the others but be careful with those debt management agenices that say they will settle your debt for pennies on the dollar. I went with one of those and it ruined my credit and they weren't even doing anything with my money, just sitting on it and taking their monthy fee. By the time I figured it out it was too late and my credit was shit.

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