I am new to this board. I am so stressed right now about bills abd credit cards etc. This all started two years ago. I used to own my own home from 1999 to 2005. I sold the home since the house , mortgage were solely in my name and my husband and I seperated and were starting to divorce. Welcome to Massachusetts and if you make more than your spouse good luck. I was able to stay in the house with the two children, but had to pay the mortgage, and ALL bills by myself. I could not handle it so I had taken out loans in order to live and make ends meet. Sold house thank goodness but had also wracked up some hefty debt in the process! I went from a credit score of 735 to now like 426. Last year I lost my job and was unemployed for most of this year. I did find a new job. Of course creditors are calling my house where i am now living constantly and harrassing my mom who is 71 and has been diagnosed with breast cancer. They are brutal. About a year ago I had joined one of the credit companies that consolidate your cards or loans into one monthly payment. They neotiate with the creditors etc Well that was a waste totally since all the creditors did not accept their proposals. Where do I begin with regard to getting these things paid off and then working on my credit rating. I am thoroughly disgusted and discouraged and do not know where to begin. These people are brutal and do not understand anything . believe me I am living day by day , paycheck to paycheclk. Where does someone begin in this madness? Thanks
I'm sorry to hear about your situation, it sounds awful. The best advice I can offer is to sit down with a professional "debt counselor". NOT one of these "consolidation firms", as you've discovered. I know Mass. has several good counselors listed on thier state website, review the list, and make some calls. You need to have a thorough review of all your financial situation, as filing bankruptcy may be a true option for you. I hate to recommned that to anyone, but it seems I have been suggesting that more and more lately. I also knoe Mass, has some tough lwas regarding support payments, if your ex is not paying, you may want to pursue those avenues as well. Again, sit down with a professional, it is painful and difficult, but you need to do that immediately. We could possibly help here on this forum, but I do not recommend posting the personal information required to adequately help.
Am Afraid I guess I am trying to avoid bankruptcy at all costs. The ex is paying however like I said welcome to Massachusetts. I got stuck with all of the bills and I am trying to dig out. Is there a way to try to work with these collectors. I just managed to work with one where they deduct each month an amount that is going towards the credit card balance. I guess I am seeking a beginning like should I try to work with them. I mean how often can a collector call you within a time frame? Will there be a light at the end of a tunnel? Has anyone ever had a judgement reversed?
I completely understand, and as I said, I ususally recommend avoidance at all costs. But, you need to evaluate your full situation, and determine (objectively) if BK is a good option for you. Try to take the emotion out of this, your credit score really cannot be hurt much more, and paying these collectors could extend negative reporting on your credit reports longer than a BK entry. You need a cold, analytical review of all factors. Make a decision baed upon getting all of the best information you can. There are always ways to deal with these people and issues, but again it all depends upon the numbers we are working with here. You've already stated that the "credit counselor" couldn't secure acceptable agreements, this is an indication of what you are up against. I can't stress enough the worth of a good review at this point, you need the facts and data of the full picture. Try to take the emotion out of it (I know how hard that is, this is where a pro helps). Think of your children, and do what is best for them.
The credit consolidation company did not even pay he creditors like they said they were going to hence end up in collections because you think all is fine and they were supposed to be paid. I would never join one of those again. Has anyone on this board been thru this as well? I mean if you claim bankruptcy I would still be making high payments per month so I may as well try to pay them off each month one at a time. Will there ever be a light at the end of the tunnel? I don't want to be ruined for the rest of my life and would also like to have the american dream all over again.
A significant amount of debt can be discharged, it will depend upon your situation, hence have a professional look at it. As for the "credit consolidators" I would be looking for refunds if they did not pay your creditors.
When I was 19 my parents got divorced. My mom was stuck with thousands of dollars in credit card debt that my father accrued. Her divorce lawyer told her she should consider bankruptcy. Being 19 at the time and thus, VERY paranoid of "what people will think", I begged my mother not to file bankruptcy. And she didn't. While she did manage to pull herself out of that situation and is glad she didn't take the bankruptcy route, it was a hard few years. Extra jobs, deciding between bread and eggs at the grocery store because we could only afford one or the other, only putting a few dollars in the gas tank because that's just all we had... it was rough. I can't advise your situation any better than bizwiz (and gives really great advice, trust me), know that all of us here at this board have been there in one way or another. And don't avoid bankruptcy for emotional reasons... bankruptcy has such a stigma, but more people than you'd think have lived through it, and you'll live through it too. And keep posting your questions here because we love it.
One thing you can do, is to write a cease & desist letter to the debt collectors, who are governed by the fdcpa. You can instruct them to stop contacting you by phone and having to make any future contacts by mail. That would at least help you with your sick mother at home. That does not work with any original creditors, who are governed by the fcra. But it looks as if your delinquent accounts are old enough that you're dealing mainly with collectors. You need to send that letter certified returned receipt req, so that you have a papertrail, should they not follow.
That's how many of the debt consolidators work. They take your money, but they subtract their "fees," which doesn't leave much to pay on the debt. As bizwiz said, you need to get an advisor, not a debt consolidation company. As far as refunds go, I suspect if you read the fine print of the contract that it will say they get their fees first. I would still file a complaint with the BBB and the FTC about them. I got stuck with about $77K of debt in a divorce and have paid it off. But I worked three or four jobs, canceled my cable and newspaper, took lunch to work, etc.
Scooblz, You need to understand that though you think bankruptcy may carry a "stigma", it does not carry the stigma with creditors as much as you may think. Also, there is the "stigma" of suits and judgements, which some of these collectors may start going after. In short, you've been dealt a bad hand, again I stress that your best step right now is to sit down with a professional debt advisor. Let them look over everything, and give the pros and cons of all options. I strongly beleive that if you sit down with a profesisonal, you will actually feel better afterwards. You will have solid information, and feel you have some options. Believe me, you will feel much better after you do it!
Think about BizWiz's points. BK is an option, and not necessarily the "stigma" that is widely presumed without justification You are in a tough position, and you need "walls" to protect yourself in this situation. BK is an absolute wall, solid and immediate. It is one of your options. There are other options, working with the creditors -- to the extent that they will work with you -- and invoking the protections available to you under the FDCPA, the FCRA, and your state's consumer protection laws against CA's and JDBs. Emotional responses to what are business decisions are not really effective in moving you from where you are now to where you want to be. Whether you elect to put up the wall via the BK route or you chose a more incremental approach, it is important that you understand what your rights are and how you go about invoking those rights. The timely DV with an inconvenient-to-call clause included is one of the essential building blocks. It halts collections efforts until verification is provided. It also imposes obligations on the CA as regards how data on the alleged debts are to be provided. Remember CAs and JDBs are notorious for not informing you of your rights and in violating them at will. You are well advised to get your head around your situation and decide where you want to be with it in 6 months or a year. You can then select to tools that will allow you to accomplish what you want based on practical considerations, not emotional. The BK option -- either 7 or 13 -- provides you immediate relief and a chance to put together a program going forward. The incremental option provides you relief over time and requires a fair degree of effort. The choices are yours, no one can make them for you.
Browse through this website for agencies Scooblz, Browse through this website; it is a website for women's services in Mass. http://www.mass.gov/women/index.htm Mass has laws that may work in your favor, you need to determine what exactly your situation is right now, and what your options truly are. You may also want to check with your local United Way, often they have resources for financial advisement, or will cover costs of visiting a referred consultant.
It takes time to go upside down,then we want a i hour "show" to fix everything. The advise above is a very good start.Its probably the number 3 thing we experiience..Death, divorce,and this.Hang in there read these posts,learn your rights,become strong.After the fire we go thru we learn and have strength we did not have.The advise here in these posts will give you hope as you see others have as well been thru the fire.We have been in the fire two years and gaining.In the 2 years we have learned more here than anywhere.No where was the info better balanced. Its too bad there is not a advocate standard company/agency we could inlist in our darkest hours..Again hang in there and start digging out. Good luck....you can overcome..
