Have any of you ever had to file bankruptcy?
Have any of you ever had to file bankruptcy?
What do you do when you have no money, you are behind on every single bill you owe, you are about to get water, gas, electric turned off, foreclosed, and sued, and your credit is shot due to the fact that you cant pay your bills now my husband makes very good money, but thanks to a recent layoff we got so far behind. He is back to work but there is no way we can catch up that quickly we just don’t know what to do anymore, we have three very young kids, what advice do you have?
Posted September 9th, 2010 in Bankruptcy Q and A. Tagged: bankruptcy, gas electric, layoff, money, water gas, young kids.
When your husband was first laid off you should have contacted all of your creditors and the utility companies. Since you didn’t, you need to do it immediately. Most creditors are willing to work with you to set up payments to keep your accounts current but you have to talk to them. Utility companies are also usually willing to work out a payment plan. All your credit cards should be locked away except for one that will be used only in an emergency.
You should also check with your local government to see what aid they might be able to give you. Ask for their help after you’ve talked with your creditors and utilities.
Bankruptcy should be avoided at all costs. It stays on your credit report for 7 to 10 years and guarantees you will pay higher interest rates on a vehicle or a house. You will not be able to finance furniture or other consumer goods as long as the bankruptcy is on your record.
I have worked in retail sales for several years and hear, at least once a week: "Why I just bought a new truck so why can’t I get financed for this living room group?" The answer is simple – the bankruptcy they took 5 years ago.
Once you get everything straightened out you need to get serious about saving money. All of us are guilty of wasting money by visiting fast food joints when we could pack a lunch; by buying bottled water when a Britta Filter Pitcher works just fine; by buying colas from the machine when we could take them to work; by yielding to that new Aeropostale or Hilfiger sweatshirt or those designer jeans; by ordering out for supper when we could cook supper (and have leftovers for work lunches). In other words, sit down and account for every dollar you spend and then work diligently to eliminate wasteful spending and then put that money in a savings account and leave it there.
September 9th, 2010 at 10:41 amNo but I am about to, we are in very bad shape too. Talk to your creditors and ask them for payment plans/arrangement. They can offer deals like forgive half of the debt and put you in a very low payment plan with zero percent interest, do not settle for less than that.
Just tell them that you want to pay but you cannot with the high interest and payment amounts. If they want thier money they have to work with you, after all is their fault too that we are in so much debt, we are guilty too, but they are responsible as well!
September 9th, 2010 at 10:41 amYes I have I do not advise going to the credit reduction places because when you go to apply for credit in the future the lenders take a dim view of that it is almost as bad as bankruptcy. If your husband is back to work then my suggestion is that you both sit down and figure out how much you can pay each pay check to the collectors and offer to make as much as you can to them. Since you did not say how much you were in debt if you can pay cash for many years then take bankrupt Most places are willing to work with you on a payment plan. Good Luck on your decision
September 9th, 2010 at 10:41 amget a part time job – weekends or evenings when hubby is home to watch the kids, so you can contribute to the household income. call all the creditors and tell them your situation and that it will take awhile to get caught up – they usually don;t cut off utilties in winter months – if he’s working,m you have to be able to pay some of the bills -= pay a portion of every bill so they know you are trying
September 9th, 2010 at 10:41 amGet Dave Ramsey’s book The Total Money Makeover Today. It’s about 1 day’s read so you should be finished by tonight. I think what it says is that you have to pay your NECESSITIES first, letting credit card accounts go by.
Food, House, Lights, water.
I urge you to get the book today and decide how to manage this credit. Since your hubby is back to work, maybe you aren’t bankrupt at all, just a temporary interruption in pay.
Good Luck
September 9th, 2010 at 10:41 amMy suggestion is go to your bankruptcy lawyer and see what they council. If your husband is making enough money, you maybe able to dig out. Most likely you will only be allowed a chapter 13 which requires some type of payment for five years to be split between your creditors.
September 9th, 2010 at 10:41 am