Debt $50000 aprox, State Illinois, Credit cards 8 Loans 2 credit score 350-400 Ok so here is my story: Things started to go bad financially back in 2003. My wife got made redundant and then she got pregnant (Pregnancy was good not bad she was planned). The problem nobody wanted to hire a pregnant woman. At the time we had about 8 credit cards and 1 personal loan. Then we made a real big mistake because we were behind on credit card payments we re-morgadged the house with a adjustible rate morgage. After this we kept borrowing more money and financed our 12 year old car. After this our morgage went up by double and is now $1950 a month. This leaves us with no money to pay any of our still outstanding credit cards and personal loans. Then because I am British an old Personal loan from England was sold to a bank in the US and is now sending me letters. We have done debt negotiation and they told me they can reduce the amount owed on each account by 50-60%, well they lied they reduced 2 of them by about 12% plus at the time 6 out of 8 creditcards and 2 personal loans took me to court where I recieved no advice from the debt negotiation company on what to do. So now I am in Default with 6 collectors, and one has a lien against my house, another is just starting to wage garnish me, which I have to face my boss tomorrow on because he probably has the letter. I am trying to afford to save for a bankrupcy lawyer but it is going to take a long time now because of the wage garnish, hopefully I can afford the house still but I don't know. Anyway if anyone has advice I would appriciate it as I am close to a breakdown!!! This last thing I done was had my 12 year old car repossesed on purpose, then went out and bought a 1 year old car with a really high intrest rate so that nobody would take it. Thanks in advice
First thing just settle and see if the member's can help with advice on an old loan you might check on the sol if they can collect in your state see if you can get legal assistance be careful with who you deal with sometimes bk is hard to avoid.but you will come back have patience it take's time.
That is a big mistake if the rate is up. But it sounds more like you signed a balloon payment loan or something that automatically goes way up at a certain point. How much could a 12 year old car cost? What you are saying is that you have an income of $2000 a month? Why did the bank make the loan when it was obvious you'd have to give up eating to pay it back? I guess I shouldn't be asking you this. Maybe the congress needs to look into the lending industry. Are you saying that you let all of them get default judgments against you? They can't take all your money. There is an amount that is protected and there is often a limited percent after that. Did you really need another loan, at a high rate? Most states protect one car, perhaps even one each for the husband and wife, up to a certain dollar value.
You would really need to speak with a bankruptcy attorney to know if they can help. Sorry to hear of your situation and hope things get better for you. If you file bankruptcy be sure to put together the name, address, and balance owing to each credit card company. Don't forget to include the plaintiff of the judgment. Once the bankruptcy discharges you need to take that to the court house and get the judgment released. Also don't forget to include collection agencies working for the credit card companies. All I can say is hang in there, bankruptcy costs are around $2,000 just try to save as quick as you can.
