My credit is taking a long slow descent to hell. I had a house foreclosed on this summer, I am being pursued for a deficiency on the property, and I haven't made a payment on my CCs in 2 months. My hours got cut to 10/week - not even enough to pay for daycare. I am apparently developing a heart condition due to stress - I had a trip to the ER this week with sinus arrythmia and am just overwhelmed. I can't declare BK because of my husband's income, which looks high on paper but is just barely enough to cover our household expenses. We've cut back on a lot of stuff thanks to this board, Clark Howard and Motley Fool, and we now just have enough to make ends meet without paying my bills. Hubby's credit is ok and we need to keep it that way - we're in the process of buying a cheaper house in another state at a lower apr to save more $$$. I have no assets, no savings and a 10 year old car that I would gladly turn over. Anyway, what will happen next? I imagine both the mortgage companies and the CCs will take me to court. How long til I get the summons? Should I appear? If so, what should I say - sorry, I just can't pay you? Is there any way to defend yourself against a judgement, or are you pretty much doomed with or without an appearance? Do CCs typically renew judgements every 7 years or will they let it die eventually? Thanks in advance for any words of wisdom. Poochie
We are in GA now. Moving to AL in the middle of January, assuming the contract on our current house goes through as scheduled. The new house and all the utilities will be in my husband's name. I"m quitting my 10 hour/week job because we can't afford the daycare. Also, for what it's worth, the accounts in question predate my marriage.
Poochie, I've been following your saga. Did you ever talk to a lawyer (refresh my memory). Have you checked into filing bk alone? Hang in there kiddo, there isn't a credit card or mortgage on this planet that is worth affecting your health over.
www.lawdog.com/states/ga/judm.htm Also I highly doubt you would be sued before 120 days on credit card balances. How many accounts are you currenty late on right now? I wouldn't worry about what to do in court until that step would ever come. You are overdoing it worrying about the worst for right now. It is good that you are not just ignoring it though.
JLYNN and George - Thanks you guys. JLynn - yes, I've talked to several along the way, and have the name of another one to contact Monday who has experience with both real estate and consumer debt. I can't file bankruptcy alone because household debt is a factor, meaning my husband's income and debts get considered. The BK attorney we met with said I'd automatically get kicked from a BK 7 to a BK 13 (or 11? can't remember) even though I am not a wage earner. We can't afford repayments, so that isn't even an option. I talked with an attny about the possibility of divorcing when spouse moves to AL, remaining here with my mother, filing BK 7 then getting remarried afterward. Unfortunately, if the courts find out, it could be considered BK fraud and is a federal crime. We've been barely hanging on and living really cheap (even when we got married we pulled off the wedding and honeymoon for $1500!). Twice in the past 8 weeks I've gone to the ER for stress-induced cardiac arrythmia. I really can't stand this and we're backed against the wall - husband has emptied his savings, 401K and employer stock plan to try to keep us afloat. I really have nothing at all, and anything we would buy from now on would be with husband's money. We do own a corporation we established to manage my consulting income (which was always intermittant). I'm not even consulting anymore, but if I ever do again, we'd route it through the company I guess. Anyway, thanks a lot for your kindnesses in replying. JLynn - I got teary at your comment about my health. Happy holidays! (I really mean this, not just grousing!) Poochie
Hey J Vick! Sorry, didn't see your post. I'm late on 3 CCs, total of about 11K in balances. I"m also being pursued for a 25K deficiency on a real estate loan that was foreclosed on. Total debt is about 38 K unsecured (including a small private student loan) and another 16K in fed student loan that is currently deferred.
Have you made a clear decision yet as to if you are going to try and pay all of the money back yet? Do you have more credit cards that you owe money to but are not late on? Or do you have any credit cards that have a $0 balance on them? I think most people that go through what you are going through right now are torn between not knowing if they should try and pay back the money. That is usually the most stressful part it makes your head and stomach and overall health go in many directions.
Hey J Vick, We have decided that I will be a stay at home mom for the immediate future (at least a year). With my husband's salary and debts, we cannot afford the payments on my debts too. We have tightened our belts to be able to live (such as it is) on one salary so that I can stay home with 2 small kids while my husband travels for his job 3-4 nights a week 45 weeks a year. I have no other cards except the 3 that are currently late. If husband gets a bonus we might be able to pay about 1/2 the balances of the cards in a lump sum, but we won't know if he's getting one until June. Meanwhile, we don't have enough $$$ on a monthly basis to make monthly payments before then. Which means that I can't make payments - it is a default decision I guess. Husband hasn't gotten a raise in 2 years, so we can't count on an increase in monthly cash until he pays off his car lease in 2005. I take my credit really seriously, always worked hard to keep it clean and pay off debt, and I feel like a failure and a deadbeat now. But the answer to your question is that I am not paying out anything else. We can't. So yeah, I'm walking away from the debt, at least until husband gets a bonus (and we first establish a safety cushion to guard against catastrophe like him losing his job) As I mentioned, husband has taken everything possible from his 401K, emptied his stock accounts and sold as much of his company stock as he is allowed to (not to mentioned maxxing out the home equity loan on his home). We don't have a stash of cash lying around anywhere nor anyone to borrow from. We poured most of that money into the house which was ultimately foreclosed on anyway, so it's basically money lost. I would declare BK 7 if I could do so without divorcing him and committing federal bankruptcy fraud. Yuck. Poochie
I also had reasons not being able to file BK(7) for a long time also. I also used to and still do take my credit really seriously. I remember the feeling along with many readers here of feeling like a failure and a deadbeat. I know you don't see it now but it is funny how these things thoughts and feelings go away with time, along with everything else. It sounds like your 3 credit cards are going to go at least 120+, hopefully you can just accept it for what it is. The student loan is no big deal right now. The worst situation would be for all 3 credit card issuers to actually sue you. First of all that is really unlikely. Even if they do the worst that is going to happen is that they will get a court judgment. If you are not working and do not have any assets in your name it really isn't a big deal. Check what the exemptions are for the state of Georgia. If you are not able to do that I can post it for you. The 10 year old car is basically safe don't worry about that. How much pressure are you getting on the 25k deficiency?
I'm not getting much pressure at the moment on the home loan - I stopped paying in April, the house was foreclosed on in August. The lender in question held the home equity loan, so they were screwed in the foreclosure sale. They pursued me for a bit, I retained an attorney to negotiate a payment plan, which I was unable to meet when my consulting gig was cut from 25 hours a week to fewer than 10. The attorney called me last week to say she'd gotten another call from them, and she passed on to them the fact that I had no income (I'm working 3 more weeks then quitting to be stay at home mom), no assets, and no immediate prospects for income. I'm lucky that I can hide behind my husband for a while. I sold all my furniture when I got married, so I REALLY don't have anything except my car, my books, a sofa and my grandmother's ring (which I would hide - she wore it every day of her life from 1926 until she died in 1997).I ultimately want to go back to school for a program that will take +/- 7 years to complete. So it doesn't look like I'll be back on the job anytime soon. Thank you for your empathy. It really helps to know that I'm not the only one in this kind of a mess, and that we are not, after all, losers and deadbeats.
Creditnet is a good place for that. If someone comes in and says pay your bills you deadbeat they will get slammed pretty hard by others here. I also had 3 judgments before my BK(7) and went throgh the whole wage garnisment, fill out your assets, and whatever. It really is not that big of a deal. By the time I got my 3rd law suit I just laughed at it. I really think your o.k for now. You could always file Bankruptcy if there is a way some day. Years from now, who knows. You really sound judgment proof to me. I would just make the decision that you did the best that you could. I mean really think about it, big deal. Even if you ever have to file Bankruptcy there is life after it. By the way you do not have a ring if anyone ever asks.
Re: Re: What happens w/ Judgements? Scared **WORKS THE OTHER-WAY TOO---I HAVE NEVER BEEN "THERE"---SO SLAM GEORGE!!!
first of all, keep in mind that your health is more important than anything, so the least of your worries should be the BK fraud stuff. if your BK lawyer advises divorce as a option to keep your health, family, sanity, etc. DO IT !
Poochie. Everything will be ok. Remember; Sometimes God quiets the storm. But sometimes He quiets the spirit and lets the storm rage on. .
Butch is right on that. Really credit wise the worst thing that can happen to you is that you have to file Bankruptcy some day. But there is alot of credit life after that. The only reason I even post my scores in my signature is to show that there is alot of hope after the worst situation. Alot of us have been though it. I had low to mid 400's across the board on all 3 CRA's in 2002. No one here is a loser or a deadbeat! The credit card issuers make business decisions all of the time. They expect to get burned sometimes and also expect to make alot of money in profit. The credit card issuers will move on just like you will. Hopefully everything in the future will work out for you in the best of ways. Enjoy the holidays and your your kids. Honestly the worst financial or credit situation can always be fixed later. Many of us are living proof of that.
It's a guilty maxim among attorneys that "any case can be won on procedure" (meaning without getting to the merits). Poochie, you can start collecting FDCPA violations when all these folks start coming at you in earnest. Don't stop them from doing the bad things they do, just document every instance. At the end of the day, THEY may be paying YOU! (or at least settling for going away with nothing, or a vastly reduced sum). There has to be somebody out there keeping these folks (CAs, OCs, CRAs) honest, and that person doesn't have to be spotless. That person should be you. When life hands some people lemons, they make lemonade. The smarter ones also ferment the peels into a toxic product for use against their enemies.
Good morning, and thanks to you all for your kindness and solid advice. As I write this, I am watching my toddler chase the kitty under and around the table crowing Diddy!! Diddy! triumphantly, like he were the first to name the furry beast. Credit? What credit? What is an abstraction like credit compared to the reality of the life I live with every day? Let them come after me - I am safe within the fortress of love and family and mightily blessed with everything that I have. What am I whining about? Thank you again for helping me get a little perspective in the face of those midnight heebie jeebies. I really appreciate each and all who have responded to this and my other panicked posts. Happy holidays! (Where's Tiny Tim when you need him??) Poochie
