Hmmm. Just got laid off. Advice?

mortgage and bills - call and ask for a loan extension - usually about 3 months. you don't pay for those months, payments added to end of loan.

utilities - dont know what state your in but some have cold weather protection where your heat/electricity cannot get shut off between october and april for nonpayment. either way, call and explain your situation, there are a lot of emergency assistance programs to help prevent shut off of heat/electricity - especially since kids are in the house.

learn about emergency assistance programs - yes, even welfare if necessary. you said you had a couple months, so you'll have time to work on this.

use a HELOC as a last resort - but you would need to qualify before you officially get laid off.

your wife and you will both need work - maybe different shifts, but you both will need to.

don't utilize all the programs available to you at once, because typically your only eligible once per year, so you'll want to spread it out.

good luck!

 

As a guy who works in a business where layoffs and firings are a common occurance, I can tell you what NOT to do, because I have made a lot of mistakes along the way.

First of all, file for unemployment immediately, if you haven't already. Some people are hesitant to do this, but it's money you've actually worked for in situations like this.

Second, be straight with your bill collectors. Tell them you're not working. At the very least they'll know why you're not paying.

If you have to, bite the bullet and take a job, ANY job, to get through the layoff period until you can find something in your chosen field. It's great that you have a computer business on the side. Perhaps a window of opportunity has been opened for you?

The last few jobs I've gotten have been through online resources and job listings. It's a lot more cost effective to email a resume than to send one through the mail.

Start clipping those coupons and shopping at discount stores for the groceries. I've cut my grocery bill in half by buying food items at stores like Big Lots, Dollar General, Family Dollar, etc. The generic stuff is just as good as the name brand items. You don't have to live on ramen noodles. If at some point you qualify for food stamps, take them. That's what they're there for. Take a long, hard look at your regular monthly bills and find areas to cut. Do you really need cable TV while you're not working? Probably not. The books "The Tightwad Gazette" have some pretty inventive ways of stretching your dollar (even if some of them are out there). www.miserlymoms.com and www.stretcher.com have some good tips for saving money.

You'd be surprised what you can find at garage sales and thrift and consignement stores if you need clothing or household items. Check them out.

I've been through some pretty lean times, sometimes wondering where the next meal was coming from. Now that things are going relatively well for me, I still find ways of cutting expanses and living frugally, so I can stick money aside for kids' college expenses, etc.

Hope this helps.

 

call all of your CC companies (now !) before you have any lates and explain situation. tell them you want to go on any hardship program they have. worst case situation, faced with paying CC or paying for mortgage and food, CC loses because they are unsecured.

 

Check with the mortgage forum about a quick sale on your home if there is not alot of equity in it. That way you avoid a foreclosure and the tl on that.
Jena info is great as are the other posts. WE did survive a lengthy unemployment even with filing BK7 so you will come thru okay. Be positive, though I say that now, I didn't think things would be this good at this time, post bk almost 1 1/2 years. If you consult with an attorney should you feel you may face foreclosure, you may be able to save the house by filing.

 

itsmymoney's advice is correct but you want to consult a good bk attorney. faced with foreclosure, bk stops the foreclosure process and your attorney can drag the foreclosure process out for 2 years by using the bk laws. this means you can live for 2 years with no house payments. of course this is a worst case situation and i hope you get on your feet before that point. the point is, you should be doing your planning now and consult legal advice while you have some funds available.

 

Looks like a lot of good advice so far, however, first thing I would do is make a clean, current resume and get it on every online board I could think of.

I would also get to every headhunter in the area (actually, they will help you do your resume for free) and get looking for work.

I think priority number one shoiuld be getting a job.

Anyway, thats just my opinion..


Good luck and I am sure everyone will be keeping their fingers crossed for you....


Shawn

 

If you've built up your second business quite a bit in the last few months, press hard with that. Get referrals from your present clients. Maybe you can grow this into a full-time (or more) job.

I agree that your wife may have to work, but try to work different shifts so someone is always there with the children. Paying child care would defeat the whole purpose.

Try to get a job doing something, somewhere. Flipping burgers or tending bar or clerking at 7-11 at least brings in some cash.

Try to pay minimums on the credit cards to maximize available cash. Yes, you'll accrue interest, but in the future you'll have the money to pay it.

 

sorry to hear about your situation but as a mortgage broker you can refinance to stave having to make a payment for 2 months and get some cash-out for reserves. but this is however only if it makes sense to do so and you have exhausted all other resources, email me if you have any questions, thanks and best of luck hope you find a good job soon! if you are in MN we are hiring some more, just an offer.

BB@allied home mortgage capital corp.

boot21_2000@yahoo.com

 

Your best thing..........always..is to be upfront with everyone..which is the great advice you have been given and sounds like you are taking. It will cost EVERYONE money if you bail......so they will work with you.

I had a WONDERFUL comment made by an underwriter a year ago when I was pleading the case for a borrower that had come across some hard times. The underwriter said that " we understand the pulse of the economy and realize lots of people are being laid off, so we ease up on the guidelines in certain cases to make it work".......I have to believe that the mortgage, cc, and other companies understand this as well.

I do know that THESE are the times that will strengthen your family. Your children do not need brand new nintendos or anything like that to be proud of themselves or their Dad. The fact that you are asking for help means you are a good MAN.......and a powerful Father and Husband.

Speaking as a guy that has been on food stamps, WIC, and other programs when my wife and I were very young and were on hard times, I can say that I have hit the rock bottom and it isn't that hard of a fall.

There are some fantastic programs that are available for you and your family and don't think for a second that you have to feel bad about taking advantage of any of these.

What you can't do is wait to go get these services. Right away find out where to get your kids covered for medical and how to get help to get food and other assistance. You probably made too much RECENTLY to get these right away but check into it now so you are ready when it is available and much needed.

And finally, congratulations on being able to spend some important time with your family! You will be back to work soon and will look at this as a blessing.

Good Luck and please feel free to call me if you need any help or just need to talk. Oh and BTW, Top Ramen is awesome...I have a bunch of different ways to do it but one of the best is to put some frozen mixed vegetables in the broth a minute after you put the noodles in.

Always remember that God wouldn't throw anything your way unless he felt you could handle it.