I was laid off about 4 months ago from a very good Telecommunications job in Maryland. I made about $80,000 a year (mostly on overtime) Base pay was $56,000. I did not find a job until recently because nobody wanted to pay me what I felt I was worth. I received a small severance package which I used to pay off some of my credit loans and have been living off of the remainder of the severance and my savings for quite some time. I also had to sell my car (kept our minivan), and withdrew my 401k. Our savings is now at $0. It gets worse. I applied for Food Stamps because it is getting so bad and then I suddenly found a job the day I did that. Unfortunately, what they were willing to pay and what I expected to live on are two different things. I need to make about $36,000 a year and this company is only paying me $27,000 to be an Assistant Manager. I guess it is better than unemployment that was paying me only about $280 a week (The max you can get in Maryland). Now to my questions: My wife has most of the credit in her name. The van, the credit cards....Everything. She doesn't work and can't afford to with 2 little ones at home. I would work 2 jobs, but I can't with the way my schedule is at my job. Some days I work during day hours, sometimes nights, and being an Assistant Manager, things change from day to day. She called Citibank, and Providian where most of our credit resides. Payments are about $400 a month for all of our credit cards. We tried to get them to let us put off until January all of our payments until we could get straightened out and hopefully she could start babysitting (she has 1 kid now, but it only pays $80 a week. (Something we didnt' want to have to do anyway.) Well none of the credit card companies or credit companies we called will do this for us. We are at a loss right now. What would you recommend? We are leaning towards a bankruptcy which will ONLY hurt my wife's credit. I filed 6 years ago ONLY in my name and we have YET to be able to purchase a house because of it. I vowed to NEVER file another bankruptcy again, but it looks like we are being forced into it. Going from $80,000 a year to $28,000 a year is next to impossible. Daycare in our area costs about $80 per child ($160 for both our kids) and we only have 1 car now. My wife can't work outside of the home so we are pretty much lost. Is there any other option? We owe $8000 to one Citbank card and $3500 to another. Those are the only HIGH balances. HELP! Were drowning! I bring home about $440 a week Rent $875 Electric $150 Water $50 Phone $30 MinVan $575 Insurance $70 Food for a family of 5 - $275 plus milk every 2-3 days Gas - $100 Not to mention the credit cards totalling $389 a mo.
exactly what are the creditors going to take from her? She can prolly pull off chap 7 if you have no assets, but you already know the effects that will have. You have to worry about your family first, credit last, times will always be good and bad, thats just life for most of us It is wise you kept your credit separate, alot of married people make that mistake. Btw $575 for a minivan, thats might have to go. You can get a nice beater up north for like $1000 in good shape. I'm gonna probably get rid of my nice car soon so i can afford (bills, maybe a house). Cars are fricken expensive, nice ones, but honestly you can get buy with something less elegant it would make things easier huh?
Geez, for that kind of money bk doesn't sound like the best route for you. It's not enough money to file against-IMHO. Ok, think about this and answer these questions. What is your credit like now? What are your scores? Is paying the credit cards stopping you from paying for your necessities or keeping up the lifestyle you led while making the $80k? You've got a lot to think about and evaluate. You've been through it once(bk), do you want to do it again? Remember, you have the upper hand now because you owe the money. There are many people here that went through similar circumstances and rebuilt their credit successfully. Take your time and evaluate everything first and make the best decision for your circumstances.
you must have edited your first message because your salary and other stuff wasn't there when i read it initially. but the jist of my message is still the same. you have the upper hand.
Thanks for the very quick replies. This board is VERY active from when I was here last. So what is my other option? I know I don't WANT to file bankruptcy. I'm not going to do it to keep them off my back. I could care less if they call me. My wife found out today that it costs $800 to file a Chapter 7 around here. Ridiculous if you ask me..... But suppose I just stop paying. (Because honest to god I can't). Then what?
So suppose I stop paying, I don't think I will have $4000 to just settle the account. Either now or in the future! Besides, if I get rid of the Van (which is what I want to do) my personal (not my wife's) credit still sucks until next year. We got 4.9% financing on the van and with my credit I will probably have to come up with $2000 down and maybe pay about 12-14% interest if I'm lucky! My wife has A1 credit right now. She gets offers all the time, but we never act on them. She owe's $16,000 in just Credit Cards.......... I owe $4,000 of my own credit, but I'm not letting that go. (after my BK 6 years ago, it would be foolish to do it all again)
well lets see if you stop paying for the minivan they will take it. If you stop paying for your credit cards, they will hound you for 6-9 months, and then a charge off for 7 years. They may try to garnish her wages, which you said she doesn't have. Credit card companies are NOT succesfull at all at collecting. Can she live with 8-9 years of bad credit? If so, just stop paying them. It's going to look no worse than a BK7 imo. And 8-9 years is less than 10 years now isn't it? If i were you this is what i'd do: Get a couple of beater cars, pronto. ditch minivan payment. ditch CC bills. Take the 7 year hit. enjoy your family life, it doesn't take all those nice things to be happy, times will be better in the future.. Thats just my opinion, that is exactly what i did along time ago, and what i would do again, if it meant that my family had its needs met, its a small sacrifice. or amass a ton of credit instantly in her name, and bounce balance transfers back and forth until you get a better job. The financing a car? Do you need a new car? I mean a $1000 92 volkswagon golf in perfect shape (which is realistic due to soft market) would probably last your a couple of years, and if it didn't you could get two
Thanks sam, You made me laugh for once in quite some time. Its taking a toll on our marriage and god knows I don't want it to end like this. Kind of takes a big hit on the male ego when you can't provide for your family. I feel like a failure and more so if they show up with a tow truck one day in my neighborhood and haul off the minivan. This is one of those stories that I will be able to tell my grandkids when I make it back to the top again. Thanks for the advice!
Yeah, but with 3 boys ages 8, 5, 3 The Golf wouldn't work. But I get what you are saying! I don't want a new car, but I guess I waited too long thinking I was worth more than they were willing to pay. In my first post I said that I have $0 in the bank and that would make it difficult to get anything other than financing. So a Chapter 7 goes for 10 years? And a Chapter 13 for 7? Because I filed a 13 and I know mine is only 7 years.........
Also, when they take your vehicle, can't they get a judgement against you to take your taxes? Or don't they always come after you for the money that they didn't collect when they auctioned off your van?
no they can't take your taxes, and you know what? If you are GETTING BACK TAXES at the end of the year you are PAYING TOO MUCH in taxes!! You should Never Ever Ever get back taxes, because you could have simply not paid the. For instance: You expect $1000 back next year? Well i'd claim full EXEMPT on my paycheck until the end of the year or $1000 came back right now. Then i'd get $0 back from the IRS/state. Think about that. If you are expecting a large return you could alter your deductions right now this minute till the the end of the year to offset that money. Never loan the IRS money, they are butt heads. dude, you're driving a minivan Not to be rude, but how manly is that?? I'd rather be caught in a new beetle than a minivan, not to rag on you. Just to make you laff... You got anything you can ebay to make ends meet for a while? one man's junk.. Everyone's gotta have a little hussle goin' on to make ends meet or make ends better. (and i'm not talking anything illegal). i was serious about the golf. Here's a nice one: http://forums.vwvortex.com/zerothread?id=581482 the dude is asking $850 but nobody is biting, needs $50 repair lol, and you'd probably take it off his hands for $500, find a buddy that does car repairs (network dammit) and quite honestly, i'd rather be seen driving that than a minivan with a soccer ball on the back of it. (no offense really, i just will never be seen in a minivan)
lol, I have 3 boys and 3 nephews living around here, we go everywhere together. We needed the minivan, but I am willing to part with it for anything else.
What about those big CC's? If he quits paying them do you think they will charge them off and go away, or sue for judgment? Yes, they can get a judgment against you for any deficiency on the mini van if they repo. Remember they won't sell it for retail--it will auction off. Someone was talking about judgments in an earlier post - they can stay on your record a LONG time depending on what state you are in. Some states can garnish wages for judgments as well. I would check into everything before deciding about BK or ignore. With your salary and expenses (and you forgot about stuff) Dr's, haircuts, new clothes for the kids, etc. you have alot of things to evaluate. AND look up the new bk laws - your time may be running out. Just my 2 cents Good luck in whatever you do...been there its a hard road, but hang in it WILL pass.
Well, great. I thought I had it all figured out. So what is the experience on this board? Do they come after you for payments on cars or high CC Accounts? I dont have any money to settle with them, and definitely don't want a judgement. HMMMMM, what to do, what to do?
yes they will come after you and garnish your wages, you gave them your work address and telephone # so they know how to get the $$, right? Because if they don't know where you work, they sure as HECK aren't going to pull off any garnishments. I kicked about $15K in debt and had 1 judgement (never showed up on report) and they did not collect, because they did not know where i worked at, nor did i bank with the same bank. The IRS is the only collection agency that can find you, and where you work, obviously. You can run but you can't hide from them. The CC and Car places they can make all the judgements in the world, but if they don't know where the beef ($$) is , they can't take it. You don't have to tell them where you work, where you bank. Tough choices..
A judgement goes on your Credit Report. It doesn't matter if they don't find you am I right? Besides, all of the credit is in my wife's name. She will have to pay this money. Not me. Remember, she doesn't work. So if she doesn't have a job, then there is no way for them to get money from her!
I am not sure why you do not sell the van and get a less expensive one? You may take a small loss but nothing IMO compaired to what you could lose in BK .
1. Had a finance company that popped a car on my DECEASED father call me about a deficiency judgement. Told him to knock himself out sue Dad all you want - he won't appear in Court. It is roughly 5K - sold a 5 yr old Camaro for 2500 at auction. 2. It may be time to talk to an attorney or financial counselor and get sound advice for your situation, and your wife. Sure everything is in her name, and she doesn't work, but what if God forbid, something happened to you...big load to leave on your wife and kids. Its those kinds of things you aren't thinking about.
