topic Re: Gambling Bottom Out in Bankruptcy

Gambling Bottom Out

Anonymous — Mon, 22 Jun 2015 13:16:13 GMT

Hello,

I have been battling a gambling addiction for 11 years. I filed for bankruptcy 5 years and was debt free. I was not gambling at all and rebuilt my credit.

In November of last year, I relapsed. I went from owing about $3K on CCs to $45,000 in loans and credit card debt due to gambling. I make about $2700 a month (my expenses with rent and credit card/loan payments are about $3500 a month) and was able to keep up with payments until now.

This month, I am upside down. I am unable to keep up with payments. I have a $1,700 400% payday loan which I am trapped by, as payments are $400 every 2 weeks). Automatic payments are bouncing, my banks are all overdrawn. I am in financial disaster. I cannot borrow anymore money (my credit score is still at 619 with BK on my record and not a single late payment). Should I consider filling for Chapter 13?

I have been going to GA and reading all self help books - not gambling.

No payments are 30 days late yet. Please advise me what I can do to incur the least damage. Please help with any advice.

Re: Gambling Bottom Out

tufa4311 — Mon, 22 Jun 2015 15:21:44 GMT

Well, this would be best in the bankruptcy forum - you should not be concerned about your credit score - at this point your primary goal is to determine how to dig yourself out of not being able to pay your bills and what type of protection bankruptsy may provide - mods, suggest moving this.

Next, other than the bankruptcy which I can't comment on as I have no experience, you would need to look at your expences and cut out anything you can - I don't know what your lifestyle is like - do you have expensive cars and real estate, do you have a 401k you can borrow from (I have done this and it was a great help), family to help, can you cut all your major living expenses and move in with family/friends (I've done the rommate thing when I had to). You are upside down on your montly income - you need to cut out all the non-critical areas and that includes how you live, where you live, and what you live with (all this is based on guessing, I have no idea what your lifestyle is like, perhaps you can share).

FYI - I've gotten in trouble before bringing up lifestyle and how one lives - I am not judging and I am ONLY referring to the financial aspects in your life.

Re: Gambling Bottom Out

gdale6 — Mon, 22 Jun 2015 16:01:19 GMT

I removed your duplicate post in this forum and your thread from the rebuilding forum is now here. Please do not cross post the same topic in multi forums thanks for your understanding.

Welcome to my Fico and good luck in getting your problem under control

Re: Gambling Bottom Out

beezer32 — Mon, 22 Jun 2015 16:11:39 GMT

First, sorry to hear that you are in such a pickle. Hopefully you get through it and down a better path. Second, regarding bankruptcy, there are some provisions within bankruptcy law that prohibits you from being granted a BK with any payday and Internet loans on your books. I believe there is a 180 day window in which you cannot have any of these types of debt, prior to filing. I could be wrong but I believe this is the case for Chapter 7 at least. If I recall, the trustee may find a 'presumption for abuse' in that case.

However all situations are different. I may suggest that since you are strapped for money, consider contacting an attorney for a FREE consultation about your situation. It won't cost you a dime and some bankruptcy attorneys will sit with you for up to an hour in order to speak with you. This is probably your best route to consider whether bankruptcy is right for your situation, even better than getting advice on this wonderful forum.

Lastly, understand that BK is not cheap. If you are financially devastated and don't foresee having excess cash in your pocket, filing any chapter of BK might prove to be utterly difficult. I also believe that Chapter 13 filing fees are higher than Chapter 7. Just some food for thought about the BK end. I have no experience in gambling addictions and wont pretend to be a psychologist or judge you. Good luck! Truly.

Re: Gambling Bottom Out

bstone — Mon, 22 Jun 2015 19:08:34 GMT

I think there are a few things going on here which need to be dealt with to truly resolve the issue:

1) The gambling issue needs to be addressed otherwise this is going to happen again and again. I think GA is great, but I also feel something more substantial is needed. Something which will help you get to the root of the addiction and overcome it. Counseling is a good start. I'm not trying to beat you up, we've all had our issues which led us to BK and no one here is better or worse, regardless why they ended up where they did. I ended up here due to irresponsibility and a bad business venture.

2) The debt itself may be easier to resolve than you think. Rather than taking the credit hit with another BK, can you get a deferment on your auto loan for a couple of months and use that money to pay off the payday loan? Then start snowballing your debt one account at a time. Or can you borrow a couple thousand from someone to get started on that snowball? It seems if you can get rid of the payday loan you can make some decent strides in getting this resolved as that one loan is what is putting you upside down.

If nothing else, stop paying the payday loan. Get everything else taken care of then circle back around and pay it off down the road. One hit to your credit is much better than a BK. And who knows, they may settle for a lower amount later on.

As has been said already, look at your current expenses. Can you drop cable for a few months? Eating out? Lower your cell or Internet plans? Second job? Anything is better than filing BK again, I'm sure you know that.

I wish you the best and hope you get the help you need to truly fix the underlying issue here.

Re: Gambling Bottom Out

Anonymous — Mon, 22 Jun 2015 20:22:48 GMT

Payday loan is actually not reported to a credit beraue. But it grows at insane rate, then they could garnish my wages if not paid. They already sent a letter to my job and they got really upset I have such a loan out and that they have to get involved in wage assignment.

I have overdrawn bank accounts, should I let them close and just keep one open?'

Should I not pay certain creditors is that better than BK? I mean I do have 45K in debt which allowed me to get into this situation in the first place...I was playing on credit.

Re: Gambling Bottom Out

bstone — Mon, 22 Jun 2015 21:10:39 GMT

You need to look at your paperwork on the payday loan, chances are they can't garnish your wages without a court order (but I don't know for sure as each state has different laws). Prior to filing BK I took a loan out through Security Finance, not quite a payday lender but not much better. One of the forms I signed was a voluntary wage garnishment if I defaulted (this basically gave them the right to garnish without a court order), however I had the right to rescind that voluntary agreement at any time. When I knew I wasn't going to be able to cover my debts I sent a certified letter, return receipt telling them I wished to rescind the voluntary garnishment request. Then I stopped paying.

They never took me to court, called a few times but that was it.

I don't know why your employer would care what you do with your finances, it's no different than if you had a child support garnishment, or taxes.

The bank accounts should be at the bottom of your list, IMO. They will report to Check Systems and possibly your credit, so they need to be resolved at some point, but right now other items are more pressing.

As far as not paying certain creditors, missing payments is going to be detrimental to your credit regardless who it is. However, certain creditors should take priority (auto, home, utilities, etc.), credit cards can wait. I would strongly encourage you to find out about the ability for this place to garnish your wages on the payday loan though. My gut tells me they can't without a court order, which will take a few months to get, and they may not even go that route (they will scare you with it, but it doesn't mean they actually will). Look into deferment of certain bills as well (auto is a good one, most will defer a couple months).

Re: Gambling Bottom Out

Pway — Mon, 22 Jun 2015 21:59:56 GMT

As far as the pay day loans go they have to become so many months behind before they come after you. Please keep in mind that when they file suit you are responsible for the court costs, attorney fee's and etc. That is if they file a judgment against you. Before I filed bk I went through this. It took them years to sue and get a judgment and I received collections calls and everything before they took it to court.

The bank accounts need to be paid, when they charge off they will report them to chex systems and could possibly report to them to the 3 credit bureaus. If they have not reported them already to chex I would suggest you open a new bank account at a new institution and begin to get things back on track. There a credit unions who do not use chex and there are some that does.

Begin to pick up the broken pieces and move on. I hate to hear about your situation. It is good that you are in counseling for gambling. You don't want a second bk, although I would suggest if you have to conuslt a attorney and make the best possible decision. n

Good Luck

Re: Gambling Bottom Out

beezer32 — Mon, 22 Jun 2015 22:28:46 GMT

Also, what type of loan is it? If it's one of those Internet short term loans that is offered by a 'tribe' operating on a Native American reserve, you can tell them to "stick it". Literally. Their stratospheric interest rates are illegal and unenforceable in most states. I had one with 'Mobiloans' before at like 600% APR. I shot them a letter to them revoking their authorization to debit my bank account and cited my State laws that allowed me to do so. Mobiloans never contacted me again and their account was IIB with my Chapter 7, 2 years later.

Re: Gambling Bottom Out

Anonymous — Mon, 22 Jun 2015 23:11:07 GMT

Thanks so much for everyone's help.

It is an installment loan at 399% from PL$ (Payday Loan Store) in Illinois

Re: Gambling Bottom Out

Anonymous — Mon, 22 Jun 2015 23:14:21 GMT

By the way I have an appointment with a bank advisor volunteer who helps people get back on track. A family friend and I also have an appointment with my BK attorney who did my Chapter 7 in 2010.

I also have been gambling free and getting professional help. But I cannot sleep at night thinking that almost 6 years of hard work, no debt and almost perfect credit got me to this point now where everything is maxed out, I'm paying insane fees and interest in 45k and I'm just screwed.

Re: Gambling Bottom Out

Pway — Tue, 23 Jun 2015 00:04:49 GMT

@Anonymous wrote:
By the way I have an appointment with a bank advisor volunteer who helps people get back on track. A family friend and I also have an appointment with my BK attorney who did my Chapter 7 in 2010.

I also have been gambling free and getting professional help. But I cannot sleep at night thinking that almost 6 years of hard work, no debt and almost perfect credit got me to this point now where everything is maxed out, I'm paying insane fees and interest in 45k and I'm just screwed.

You are moving in the right direction. You have seeked out to get help, personally and professionaly. Not too many people will talk about their gambling addiction and admit that it is time for them to get help. Each and every day we live and we learn.

Re: Gambling Bottom Out

Anonymous — Tue, 23 Jun 2015 00:16:41 GMT

Thank you. Very grateful for all the information I'm getting.

Anyone has experiences with installment loans? What about credit card companies? Should I consider settling? Should I try to keep up with payments and selling off anything I own? Just curious if anyone could give more advice. My next paycheck isn't coming for 2 weeks ($1350). $400 is due for payday loan. About 500 to credit cards and other loans. My bank is overdrawn about $1000. My rent of 550 is due. Not sure what to do at all

Re: Gambling Bottom Out

NYFan63 — Tue, 23 Jun 2015 18:25:10 GMT

@Anonymous wrote:
Thank you. Very grateful for all the information I'm getting.

Anyone has experiences with installment loans? What about credit card companies? Should I consider settling? Should I try to keep up with payments and selling off anything I own? Just curious if anyone could give more advice. My next paycheck isn't coming for 2 weeks ($1350). $400 is due for payday loan. About 500 to credit cards and other loans. My bank is overdrawn about $1000. My rent of 550 is due. Not sure what to do at all

I think some of the advice above is beneficial. You HAVE to pay your rent so you have a roof over your head. Get the Payday loan paid off and maybe defer the CC payments until that is paid off. That will be rewarding in itself, then you can focus on the CC payments. Maybe you can call your CC companies and explain you are in a bind and need time to take care of a "personal matter". It cant hurt. I filed BK7 five years ago and as bad as it felt having filed, I always said this is fixable, it will jsut take time. I have a roof over my head, I am in good health and I have a good paying job. AND learn from your mistakes. Keep in mind, having money to use to pay off debt is better than losing it at the casinos.

Best of luck to you! Remain positive.

Re: Gambling Bottom Out

Anonymous — Tue, 23 Jun 2015 18:39:38 GMT

I'm wondering what the spread of OPs debt is.

Say a big chunk is on one card. It might be worth to hold off on paying that card while digging out of the payday loan and keeping everything else current. Then go back and deal with it and hopefully only have one account that was late for a couple of months.

Re: Gambling Bottom Out

Anonymous — Fri, 03 Jul 2015 21:37:11 GMT

To make all my matters worse. I have lost my job.

I am almost 30 days behind on all my accounts. Including rent. Nobody I can fall back on, wondering what is my best way to take a fall here. Will I never be able to get credit again considering I was already in Chapter 7.

Please help

Re: Gambling Bottom Out

barbaralee — Sat, 04 Jul 2015 01:58:55 GMT

What was the reason for losing your job? Were you fired due to circumstances beyond your control? If that is the case I would beat feet down to the Dept. of Job and Family Services first thing Monday morning and file for unemployment. If you have not already I would also call every one of your creditors including your landlords and let them know of your situation and see if payment arrangments can be made. It's always been my opinion that if you are tight on funds living trumps credit card payments, so any disposable income should go to making sure that your rent is paid you keep the roof over your head.

Whether or not you will be able to get credit is a non-issue right now for a few reasons: One is that you have bigger, more important things to stress about, and no need to borrow trouble with whether or not you will be able to get credit in the future. Two, is that more than likely you will eventually be able to recover from this. It may take some time, but that is the case for anyone who is having to rebuild.

Good luck! I am sure others will come along with better advice on what to do.

Re: Gambling Bottom Out

Anonymous — Sat, 04 Jul 2015 13:56:58 GMT

I am pretty sure because they see I am going through a very hard times and they have warned me that the company shouldn't have to participate in any wage assignment.

I am broken now. I have about 12 maxed out credit cards, personal loans, overdrawn bank accounts, automatic loan payments that are being retried every 3 days.

Re: Gambling Bottom Out

Anonymous — Sun, 05 Jul 2015 12:06:48 GMT

Hi Everyone,

I would like to ask you a few questions that are very important to me right now, just so I can expect what the future might bring.

1. I have two accounts with Chase, one is about to close due to overdraft, does anyone know if one account closes, so will the other as they no longer will want my business?

2. Since I was in discharge BK Chapter 7 in 2010 (Feb), my credit will start taking first few derragatory marks, after I rebound, how hard will it be for me to get credit? Will it take another 7 years for a decent score due to late payments and couple of collections?

3. As my personal credit will soon tank and I do own a small business (S Corp). Will I be able to build my small business credit and rely on that vs my personal or will it be forever tied to my bad personal credit.

4. I found this company: cambridge-credit that has outstanding BBB reviews and helps with Debt consolidation/counseling. Can they help me in any way or is a scam?

Please advise! Thank you!

Re: Gambling Bottom Out

Kb109 — Mon, 06 Jul 2015 15:22:11 GMT

So sorry about your financial troubles. If I were you, I would definitely file chapter 13. And how in the heck is a 400% payday loan legal? OMG...