Anyone Thinking of Filing for Bankruptcy?

iVillage Member
Registered: 03-17-2003
Anyone Thinking of Filing for Bankruptcy?
4
Tue, 10-09-2012 - 1:19pm

The economy is still sputtering along and I'm sure many of us are struggling.  Are your household finances in such a state that you are thinking of filing for protection from your creditors?  Bills and the stress caused by insufficient income to cover all expenses is huge.  Please understand you aren't alone.  I hope you are reading posts and past threads, and that it may offer some support, information, and reassurance.  If you have any questions or just want to vent, this is the best place to do it.  There is a plethora of wisdom here and kindness!  Feel free to browse around and we would be delighted to hear from you!

Carolyn

 

iVillage Member
Registered: 01-02-2008
Tue, 10-09-2012 - 6:10pm

Funny or  not that you would post this now.. I just got another collections letter for a credit card balance.. I tried to settle and I have spoken with them dozens of times but they keep selling the account to other collectors.. Now I have another 30 days to call the new collections agency.. I am thinking about moving with no forwarding address......

Oh; I also dont have a phone so how would I contact them???

Right now I live off my retirement some and being I am 58 and cant find job and if I live I would like to hold onto the remaining money I have so I am thinking about putting the remaining money in retirement and going bankrupt.. just to get these people out of my life.I also havetwo small cards I can barely pay anymore.. I have been the most upstanding person and have never done anything in my life and have always lived very frugal. I am in debt from my divorce.. I am not blaming that but I just got a bit set back with loss of income and I was homeless and my ex was abusive. Not blaming him but I got j ammed up a bit..

Only thing is if I have some catastrophic illness that I cant pay for and cost me alot How would I pay that bill??

Maybe Its time for Hari Kari.. (lol)

iVillage Member
Registered: 03-17-2003
Tue, 10-09-2012 - 7:12pm

Hugs to you freeatlast2008.

No doubt about it: it's stressful having to deal with those letters in the mail.  I guess not having a phone is a blessing because otherwise your phone would be ringing day and night with bill collectors.  As it is now all they can do it send a letter.

You could certainly speak with a bankruptcy attorney about options and how to insulate what little money you have (by putting it into retirement).  Then again, you may be what is called "judgment proof".  In other words no matter how badly creditors want money from you, no matter how many times a debt is sold to another debt collector, nothing changes the fact you have no money to pay.  Let them threaten to sue for nonpayment: you have nothing they can touch. They could sue and then have a judgment they can't collect.  Add that judgment to the drawer of tens of thousands of other judgments they can't collect.  If you are "judgment proof" you might still consider filing just to put a stop to the debt collection efforts (which sound perfectly hideous).  What's your peace of mind worth?  At any rate, consultations with most bankruptcy attorneys are free of charge.  All it costs is your time.  No one will scrutinize you nor make the appointment or process demeaning or upsetting.  People who are considering bankruptcy have been beaten up enough and struggle with their own sense of guilt and despair.  If anything bankruptcy is framed as a fresh start for your finances and your emotions.

For the record, the second most common reason cited for filing bankruptcy is divorce.  Believe me: you are not alone.  What's the #1 reason people file bankruptcy?  Health related debt.

Have you looked in the phone book for area listings of bankruptcy attorneys or are you just exploring the option and gathering info?

Carolyn

iVillage Member
Registered: 01-02-2008
Wed, 10-10-2012 - 12:05pm

oh; thank you for letting me know this information. It is very valuable.

I have a new letter now from a collections agency that says I must call them within 30 days. This is my fifth letter from another agency. I have spoken with others and they wont budge for anything..

Well? I have no idea what to say when I call but I will contact an attorney and see what my options are.. I have a file a mile long now over this and nothing gets accomplished..they wouldnt do a settlement or a payment plan or anything... I live in NY and of course its a litigation state..

I do have savings and what worries me is that if they get a judgement and sue me and take the money it will be less I live on. I live on the money so it def. has me worried.. I pay bills with it but it is a substantial sum of money.. I am a bit scared about it all.. Jobs where I am are scarce and although I try I am getting nowhere.. I am not complaining but just sayi ng.

I can also see a debt management person through my town for free. Its a service offered through the area and its legimate. It might be a place to start before the lawyer. this way I can get info without paying first but I def. will look into a lawyer...

thank you so much.. I appreciate the feedback..

iVillage Member
Registered: 10-31-2002
Wed, 12-26-2012 - 9:23am
This is what I did...I wrote each creditor with a payment plan, yes some of the payment were small. I kept copies of each letter and each payment sent. I picked up extra parttime work to put toward my debt. In two years, I paid off all the creditors and bought my score up. I kept my creditors informed and when there was a reasonable balance on the acct and I had for ex. 500.00 I called the creditor and asked if they would settle said acct for 400.00, I received a yes. I did not send my payment to the creditor until I received a confirmation letter, then a letter and payment went out. I then photocopy the letter for each credit bureau with copy of said payment to update my credit report.