74 weeks and I have done some calculating

iVillage Member
Registered: 10-01-2008
74 weeks and I have done some calculating
9
Thu, 09-20-2012 - 10:32am

Well with only 74 weeks left in our Chapter 13 Bankruptcy payments I'm beginning to see what the ending balance is going to look like.  Even though we will walk away with a balance still owed on the unsecured debt, I'm having a feeling of guilt. Our beginning balance was $125,995.  Our current balance is $64,267.08.  With 74 weeks @ $518. left to pay, our approx. $38566. that will leave us walking away from the unsecured debt (6 credit cards and the balance due on a surrendered vehicle) of approx. $26,000.00, give or take for the interest that we are paying on the two vehicles now.  I did not run an amortization schedule to see the exact amount because I never know the exact date the payment is made.

 Anyway the moral of my post is we will pay back around $100,000 in five years and walk away from $26,000 in debt.  I feel somewhat guilty.....but then I think about all the people that DO NOT fill bankruptcy and simply call up the credit card companies and ask to settle up for a lump sum payment.  What's the difference?  They are walking away, sometimes paying only 60 - 70% of the balance.  Walking away from paying a debt is hard for me to do.  It really bothers me deep down inside.  I used the money for purchases, be it food, clothing or whatever, and a debt is a debt.  Will this both me the rest of my life that I walk away from this?  How do I tell myself to let it go?  Guess I need some words of wisdom.......

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 02-11-2006
Thu, 09-20-2012 - 10:41am
((Hugs)) Norma! You should not feel guilty at all! Bankruptcy is there to help people like you, hardworking people who fall on tough times. As I recall, you had to close a business, right? And you were charging gas and groceries, not fancy purses or extravagant vacations. You agonized over the decision to file bankruptcy, you were not looking for an easy way out! You are paying back what the court decided you should pay back. You have done everything RIGHT and you are such an inspiration to so many!! Please don't feel guilty...feel proud and move forward to the next phase of your life!!
iVillage Member
Registered: 11-14-2008
Thu, 09-20-2012 - 11:03am

NO, NO, NO I won't let you. 

For all you have been through do not feel guilt. You are paying so much back. People that file usually leave a far greater balance. And I like what you said in your post too.

Let it go and know you have learned so much and have passed it on to others. That is and will always be your give back!

Karen

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Thu, 09-20-2012 - 11:57am

I'll just add my voice to the others.  You didn't try to escape the consequences of an extravagant lifestyle you couldn't afford.  You had a number of misfortunes that could have happened to anyone.  As someone else said, that's what bankruptcy is for.

That's why I've been supportive of you during this.  I would have been dead set against bankruptcy for myself, since I made my own mess by sticking my head in the sand, not being realistic, not changing my lifestyle sooner, not taking advantage sooner of the opportunities I had to make more money, etc.  Bankruptcy should not be an option for people like me who were just being stupid and hoping someone would rescue them. 

But you are a different story!  And you should feel good that you have done everything you could.

Life is tough enough without beating up on ourselves.  Listen to your friends who are here to lift you up!

Community Leader
Registered: 08-25-2006
Fri, 09-21-2012 - 6:41pm

I haven't read the thread, but here are my thoughts.

Keep in mind that a lot of this debt was interest charges and probably some over limit fees, late fees, etc. etc.  If I added up what I ACTUALLY purchased on my CC, I am sure I would be disgusted of how much of my balance is interest. 

I would imagine that you, in fact, have probably paid for what you purchased.  Because you are right, I don't see how it is any different from other people settling with CC companies or collection agencies.  Businesses allow for losses or they wouldn't still be in business. 

And remember, the CC company charges the retailer for the service of using a CC. 

If it still bothers you, I am sure you can find a way to make amends another way.  I would say that what you do here is one way of paying back to the universe what you feel you took when you filed for BK. 

Hope that makes sense. 

I always say that all I can do is ask, apply, or what have you, and see what happens.  Sometimes I qualify for help, sometimes I don't.  I don't feel guilty for applying for something that is there for that exact reason.  I tell the truth and turn it in.  You asked for help and you got it.  Nothing to feel guilty about. 

Honestly, who knows what kind of incentives some of these places get that we don't even know about.  Not much would surprise me. 

Now I am going to go read what the others said.:smileywink:

 

Serenity
iVillage Member
Registered: 10-17-2010
Sun, 09-23-2012 - 6:49am
Oh, Norma you shouldn't be feeling any guilt. You did what you had to in your situation. Just focus on the fact that you are able and willing to pay it back; there are many out there who are unwilling or unable. Give yourself a pat on the back for doing the honorable thing in a way that is best for you.
iVillage Member
Registered: 04-10-2003
Sun, 09-23-2012 - 9:28am
Norma, don't feel guilty. It wasn't like you spent the money buying extravagent items or going on vacation. It was the fall out from a business that suffered from the recession. If you figure out how much interest you've paid over the years, I bet its way more than $26K. Don't feel bad!

Bex -

iVillage Member
Registered: 04-08-2008
Sun, 09-23-2012 - 2:49pm

Maye this thought will help you - the money never existed in the first place. Think about it...was your cc company a bank? Well, banks use our deposits at a fractional amount to create "money" or really debt. So if I deposit $10K into a bank, they can then charge me monthly fees (ours charges $20/mo) so they can turn around and loan out $100K that they don't REALLY have. When you multiply that transaction a million times over, it's easy to see that there is NO possible way that the money can every be paid back with hard cash - bc that amount of money supply doesn't not exist. It never did.

What did the bank do to earn this money? NOTHING. They charged the depositer for the priviledge of holding their money.

So why feel guilty about not paying back non-real "money"? It was a blip on a computer screen. If you look at that your $126k, how much of it was fees and interest? Probably too much.

And don't worry about the bank, the federal reserve is taking care of them :smileyhappy:

Dee