Getting Caught Up ..... Then working on rebuild........ ? HELP !

[Anonymous]

Have you thought about getting a second job?  I know so many people with debt problems but they are not willing to get a second or a part-time job to help pay down the debt.  I did this a few years ago.  I was laid off from my main job and got into credit trouble.  After finding work again (in my field), I took a part time job and ALL the money from the part time job went to paying down my debt.  The part time job does not have to be in your field.  I worked at a retail store and my field of study is chemistry/biology.    I worked, at least, 20 hours each week at the part-time job making about $10/hr.  That was close to an extra $10,000 and all of that was applied to my debt.  Taking a part time job is better than applying for BK.  You have too much debt now for your current salary.  Make cut backs...no eating out, no cable, etc.  I cut back on all my non-necessities.  You don't NEED a smart phone, you can make do with a flip phone.  You don't NEED cable TV/netflix, you can watch whatever comes in on antenna.  You don't NEED 'xbox live' (or similar subscription services), you just WANT it.  Cut out all the non-needed extras and put all those savings toward paying down debts.  Get a part time job and put all that to paying down debt.  By doing things like this, you can get out of the hole much faster than you would think but you have to be willing to make those sacrifices.  Otherwise, do BK and screw your credit for the next 10 years.  I say make some sacrifices now instead of doing BK though. 

First, get current on the car loan and STAY current.  Then get current on all the open credit lines and STAY current.  Then start paying those open lines down and try not to use them.  Once those are paid down, start saving your money to pay each charge off in full and see if the collection agency will do a PFD to remove it from your CR.  So get current on all open accounts and then start working on accounts that have been charged off.

[Anonymous]

Hey Guys,

I posted in the rebuild forum originally and was told from the looks Chap. 7 would likely be best. Wanted to post here for more opinions or just feedback. I'm 27 with no dependents living in Omaha, NE. As of recently will be making about $1330/ bi weekly ($2,660/Month) $38,900 Gross/Yr. Took a financial hit after illness and gall bladder surgery last year, caught up on normal bills early this year but fast forward to April/May hours were cut at old job and hit with garnishment. Regular bills including my active card minimum about $1800-$1900 Planning to save November "extra check" and file soon after thinking December.

Accounts 

Capital One Auto $14,555.64  - purchased last year 2016 Toyota Corolla has 35k miles now 18% int. past due as of Aug, 21st due date for $411.07 (paying before 15 day grace up so no late)

Capital One Platinum CC - $500 CL / $539.03 balance never late/current but over limit (still paying)

NFCU nRewards Secure $800 CL/ $834 - 4 DPD

Finger Hut $782 - 90 DPD for $250

Comenity/ F21 - $784 Approaching 90 DPD

Student Loans (FedLoan) $28,000 - Forb. In Good Standing

Collections/ Charge Off & Others

Fed. Taxes $1,400 - combined 2013, 2015 and 2017 balances; Not currently paying

State Taxes $500 - Not currently paying; unsure what year 2014 or 2015

Unemployment Overpayment 2014- $2000 approx.

UNO Book fees - $327 collection

First National Bank of Omaha - checking C/O March 2019 $300 

Centris FCU - Overdraft $300 still open

Metro FCU -  checking C/O 2013 $500

NFCU Checking C/O 2018 $450

Capital One 360 - overdraft $479.35

US Bank C/O 2015- $150

Comenity/Victorias Secret CC C/O 2013 - $500

First Progress CC C/O 2018 - $300

Nebraska Furnitur Mart CC C/O 2011 - $1,800

Cobalt CU (Formerly SAC FCU) - Voluntary Repo C/O 2014 $7166.96

CNAC (JD Byrider) - Repo C/O 2015 - $6,000

Sprint - Collection $900

Wells Fargo CC C/O 2013- $1,200 (Received 1099 for it not payable)

Known Medical Collections $2,500 (lots more from er visit and surgery last year but don't have estimate.)

Total Debt above= $72,267.98‬

 I am unsure if the state taxes, overpayment or fed taxes can be included and i know student loans are mine forever. I am burning cap1 for $500 will I still be able to reaffirm the car? Possible to negotiate lower rate or payment when reaffirming? I plan to pay the car off early eventually with extra payments here and there but just need to still have a vehicle. Should I close NFCU secured and pay off c/o before filing ? Can I get back in after BK with NFCU if I pay before filing? Lastly when collecting information for accounts that may have been sold to collectors, do I provide OC paper work and collections info to lawyer? There's some that I have no idea what companies they are with now. 

Any input helps & Thanks in advance.

[Anonymous]

@Anonymous 

I merged the second thread you created into this as you posted almost identical information.  Please do not cross post in different forums. It is confusing to other members trying to assist you and is against forum rules. Thank you for your understanding and cooperation.

[FireMedic1]

As some others have explained. And now that you have listed out all of your debts. There was a fellow member in almost the same position recently. So I will answer your question the same way basically. I may sound like a broken record if some read my posts. So here goes. In the time it would take to pay all of this back. You could be better off with a fresh start. I never say yes go file BK. Just the facts and something to ponder on. Your 27 and even before life threw some shots at you. It seems by 100 words or less per say in your post. You were living pretty good. But you weren't prepared for emergencies if they arised. But they did and next thing you know. It went over your head. And now your drowning in debt. Its time for a fresh start and hit the reset button and start over. There should be one move. Wipe the slate clean. Now if you want to pay your secured NFCU card fine. Isnt a lot. But think about it. A small secured card got outa hand and creditors will see that. Even companies that offer secured cards for rebuilding. I'm no NFCU expert. Others may chime in on paying and re-applying after DC. There are 5 requirements to have IRS taxes DC'ed. States differ. Lawyer would know best.

Since your young. At 37 there will be no signs that anything happened on your reports. Nada. From the present. You will probably learn a lesson in life you have to be prepared at all times what comes after you. And this chapter of your life you will have learned from and I'm sure you wont repeat it again. Credit numbers on here are like our fingerprints. None of us match. Though you can see below what 4 yrs can do after the fresh start. As my disclaimer states. Its not to brag. But to give hope. So ask yourself. If you didnt file. Would you be where I sit below now? Probably not. I would advise to start now and get to work on getting a new life debt free. And yes I can say as a med profesional for 35yrs that the stress of debt does the body no good at all at any age. So I look at the health side also. Time to get busy and close this door. Then open a new door to financial freedom. Learn from your mistakes. Never looking back and see what lies ahead. Pretty good credit file with a savings account and plan now for your retirement. Yes at 27y/o. Good Luck!

[Anonymous]

@firemedic1
...... i love you ! Lol I appreciate your feedback (kind of a fan of yours i always see your posts when helping others) but yes you hit the nail. Not being prepared for emergencies was indeed my PRIMARY issue also in the past income as well. I slept on it and woke up thinking about this.
Health wise this past year has definitely taught me the effects my stressing over debt and just life has had on me. All my stressed manifests as GI issues or headaches.
Would be be advantageous to just close all my active cards myself now & just save anything I can toward lawyer ? Its about $1700-$1900 to file in Nebraska with a lawyer

[Anonymous]

Noted. Thanks for merging and sorry wont happen again.

[Anonymous]

Hey ! Thanks for the feed back, I appreciate your response and the info. Ive definitely tried this a few times in the past as far as getting a part time and working my butt off..... honestly it was kind of only a temp fix. It did indeed help a bit but took too much of a toll on me mentally and physically. Plus i wasnt prepared for some of the emergencies that came up (2 Non fault car accidents, illness and emergency surgery) Had an overnight and day job worked OT when I wasn’t doing the part time then became really ill. This was just about a year ago. Ive definitely learned alot from just time and mostly theres forums.

I know theres light at the end of the tunnel after BK , these forums have taught me that.

[FireMedic1]

Easy answer. Yes.

[Anonymous]

I appreciate it, think I'm gonna stick with NFCU regular banking wise. Gonna close the cards in the next week or 2. I figure sticking with NFCU, that will help with my rebuild so gotta get my crap together with them. Gonna get my car caught up then save for filing.