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Feeling trapped

Frequent Contributor

Re: Feeling trapped


wa3more wrote:

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...


As a debt collector, if a creditor has a judgement against you and garnished you as long as you make over the income requirements per pay period you will get garnished up to 25% of your wages after tax. A judge won't stop this, so that information is false. You can stop paying on your loans, however just be aware they might come after you if you don't resolve the issue. If you can't live making all these payments, it might be worth you just paying your monthly requirements such as rent/utilities and talk with a BK attorney what they suggest about the rest. You most likely won't get rid of your student loans, but not having the extra stress of everything else might make it easier. Depending on how many children you have, your income limits might qualify you to get SNAP. You could speak with your local DHS office regarding if you qualify for SNAP or not, if you do it can make it somewhat easier for you to get basic living requirements such as food. There might be other resources available to you as well, which your local DHS office can assist you with. It wouldn't help with creditors, however utilities, food, daycare (if needed) they might be able to assist.

Ch7 BK filed 7/5/16, DC 10/12/16
Message 11 of 24
Frequent Contributor

Re: Feeling trapped

yes you are right, judge cant stop. The OP is entitled to certain exemptions and limitions other than the 25% i believe that are related to minimum wage limitations, 30X  some number, don't remember.

Message 12 of 24
Frequent Contributor

Re: Feeling trapped

LadyK,

 

what state are you in ?

 

Some states do not allow garnishment while others provide more protection from the 25% rate mentioned previously.

Message 13 of 24
Frequent Contributor

Re: Feeling trapped

You mentioned a title loan in your original post. Just keep in mind that if you stop paying on the title loan, you will likely lose your vehicle.....


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Message 14 of 24
New Member

Re: Feeling trapped

I'm in Ga
Message 15 of 24
New Member

Re: Feeling trapped

Yes I will continue to pay my title loan and student loan but the rest is to much for me to handle. I've applied for snap a few weeks ago but haven't heard back yet. I have two children. I just want to be able to get a fresh start. I already moved to a more affordable place. I'm still looking for a better job but haven't had any luck.
Message 16 of 24
Frequent Contributor

Re: Feeling trapped

In Georgia, a creditor can garnish the lesser of 25% of your disposable income or the amount by which your disposable earnings exceed 30% of federal minimum wage. If your disposable income is less than 30 times minimum wage, it cannot be garnished at all.

Message 17 of 24
Valued Member

Re: Feeling trapped

I am also a single mother and was in the same predicament as you. I had waay more debt than you, but only You know what is too much for you. It might not seem like a lot to us, but to you, its different, so you have to do what is best for you and your kids.

 

If you happened to get sued before filing bankruptcy (if you file), please go to court and take your pay stubs, bills, etc. If you dont show up to court, you will have a default judgement against you, and they will be free to garnish whatever the state allowed amount is. My sister and best friend ended up having default judgements. My friend had to write a hardship letter to the court and submit her paystub. Then, a court date was set. Before the court date, she was still getting garnished for the allowed amount, so be proactive.

 

Good luck with everything!

Message 18 of 24
Frequent Contributor

Re: Feeling trapped

I don't really have the answer and I feel for your situation. Your school loan payments can be income based or deferred. I really don't think you should do bankruptcy. You would get so little and have to suffer much more for 10 years. You are penalized even when renting or buying a car.

4/25/11 FICO: EQ 761....EX 770.....TU 744
3/6/2011 FICO: EQ 710... EX 718... TU 710
09/09 FICO: EQ: 525
Message 19 of 24
Established Member

Re: Feeling trapped


StartinOver wrote:

I don't really have the answer and I feel for your situation. Your school loan payments can be income based or deferred. I really don't think you should do bankruptcy. You would get so little and have to suffer much more for 10 years. You are penalized even when renting or buying a car.


+1

 

I don't think BK is a good option for you with such little debt. The lawyer would be 1300ish alone, not to mention the value of the time and worry you will put into the process. Do anything you can to get money and pay your bills. 

Message 20 of 24