03-12-2017 02:11 PM
03-12-2017 02:26 PM
sorry to hear about your situation. It will get better.
You can send your creditors a cease and desist letter telling them to contact you by mail only. Original creditors do not have have to follow the FDCPA but most will abide by your letter. I don't know if I would BK on this amount and the student loan isn't dischargable.
I would stop paying on all bills at this point. Only pay for things related to four wheels and four walls. At your income level, you might have some protections. If the judgment holder tries to garnish, go to court and explain the situation to the judge, most judges will not let this happen.
If it gets too much, then use BK, but only as a last nuke option. I'll let others weight in who have maybe been in your position.
I was in similar position in 2009. It will get better, hang in there...
03-12-2017 03:01 PM
I am a 31 year old single mother of two. I work full time but my annual income is only $22k a yr. I have one credit card maxed with $600. Student loans in the amount of $4k that I have been making monthly payments on. I have a title loan that I pay $250 a month on. Rent and utilities run about $820 a month. Plus I've taken our several personal loans to try and stay above water. They total around $3500. I've gotten behind on my loans because don't receive any assistance for groceries or health care for me and my kids. I was in a relationship and he was helping me get by but due to certain serious issues I ended the relationship. I was served a judgment on one of my loans a week ago. I know that I owe it...but I just can't afford to pay it. I have absolutely no savings and used my tax return to move into a more affordable place. I can't sleep. I'm crying constantly. My creditor's are blowing up my phone for payment but I just have nothing left. Is filing doe bankruptcy a good option for me? Is it even enough debt to? I don't want them to garnish my check because I will lose my job.
Hmm... that's a tough situation. I was a single mother to 1 child just a few short years ago but my income at the time was 8-9k more than yours & I was barely getting by. I guess my question to you is, Will you be able to get by with your income minus all the personal loans you're paying on? If so, BK may be an optional route. If you were to pay only rent, utilities, food, and gas minus the loan payments & still find yourself short on cash then filing BK is pointless because you'll fall right back into debt.. do you have family or good friends who can lend or give you $ to help? I'm sure there are public assistance that can help with lowering your utility bills & such.. finding resources can be time consuming but worth it IMO.
Consult with an attorney for some legal advises. GL though!
03-12-2017 03:11 PM
So sorry to hear about your difficult situation. You have some good advice in this thread. Best of luck to you.
03-12-2017 03:30 PM
I'm not sure what BK costs . Let's say its 1,500 and you can borrow the money. You might be able to use this money to settle your debt.
I settle chase and amex for about 20 -25% after charge off when I told them to sue because i was filing chapter 7.
Usually a consultation with a BK attorney will result in BK as your only choice so be careful. Remember, you use BK as a nuke option. But at your income level, you might have some protection and your creditors might think you are a prime ch 7 candidate and might be willing to settle. So I think any further payments to your creditors would be a waste of money. But you need to do what you feel comfortable with.
It will get better. Send out the letters to creditors to stop calling so you can get peace of mind. Document everything in case they violate the law. Sometimes they sell the debt or a collection agency will get involved and they will violate the law, then you will have leverage.
03-12-2017 04:43 PM
03-12-2017 05:59 PM
I moved to an income based apartment and gave up my house that I was renting to be able to afford all my bills. So if I filed and the loans were illuminated then yes I would be fine. The only reason I got the loans was to try and keep my house, but my landlord kept going up on the rent each year. I've been looking for a p/t job to just cover the loans but no one wants to hire me for just sat an sun. I work ten hour shifts during the week so it makes it limited on finding employment outside those hours. Thanks for you suggestion. I think I might just talk to an attorney.
Do what's best for your kids and yourself. I remember what it felt like to do everything on my own when I was at my lowest point. I'm sure no one would like to file BK because it does stay on your CR for many years but filing doesn't make a person a bad one.. I am sorry to hear about your situation though. Things will get better!
03-12-2017 06:22 PM
Others have already posted excellent advice. I just wanted to stress public assistance. I don't know what state you live in but, here in California, there are resources such as HUD to help with housing costs, CalFresh to help with food, some utility companies have assistance programs. Use whatever resources there are in your state to alleviate your situation. As others have said, things will get better for you and your kids.
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