Trying to stay afloat but losing

iVillage Member
Registered: 06-01-2008
Trying to stay afloat but losing
11
Sun, 06-01-2008 - 3:15pm

About a year ago I lost my job and thought that the insurence I added to my credit cards would take care of me in that situation. After all what was I paying all this money extra for if not to cover me in case of a loss of job? Well, when it finally happened the isurence companies put so many stipulations on my claim that it never got filed. So needless to say I tried to play catch up for a couple of months but I kept getting buried by debt. I was struggling to even feed myself let alone pay the bills. I finally gave up the struggle and just stopped paying so i could eat and buy gas for my car. Now about a year later I am still in debt and everything is going to lawyers. I don't know what to do and I don't know even where to start. Please offer any advice you have for a 27 year old buried by debt.


Cristi

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Avatar for travinski
iVillage Member
Registered: 05-21-2004
Mon, 06-02-2008 - 10:32pm
Go to a bankruptcy trustee and get them to hold off on the

Travi

 

iVillage Member
Registered: 04-12-2007
Wed, 06-04-2008 - 9:35pm

I would advise you to start by going to a non-profit credit counseling service, such as CCCS.

iVillage Member
Registered: 06-01-2008
Sun, 06-15-2008 - 9:48pm

I was thinking I should just to do the bankruptsy but I am afraid. Do u think that this will really work? I just dont see myself being able to ever catch up and afford to live. I dont know what to do still

iVillage Member
Registered: 03-17-2003
Sun, 06-15-2008 - 10:05pm

Travi is right.

iVillage Member
Registered: 06-22-2008
Sun, 06-22-2008 - 1:30am

If you haven't filed for bankruptcy yet, please reconsider. For 7 years, you are basically screwed and Dave Ramsey says bankruptcy filings NEVER leave your credit record. So.... I would call a good credit counselor and get advice on handling the situation. Say bankruptcy is not an option and what do they advice. Many companies will settle for pennies on the dollar.

Also, I am confused about the insurance dilemma. I'm assuming this is health insurance premiums or are you talking about workman's comp?

Theresa

iVillage Member
Registered: 06-22-2008
Sun, 06-22-2008 - 1:33am


Cristi,

I get it now, you mean the insurance on the credit card against fraudulent charges, etc. Anyway, don't file bankruptcy. Trust me on this. Just settle with them. Don't pay stupid lawyers. They are such leaches. Go to a good credit counselor. Find out their fees upfront. You will likely pay 1/3 to 1/4 what you owe if they do their job well.

Theresa

iVillage Member
Registered: 03-17-2003
Sun, 06-22-2008 - 9:39am

Hi Theresa.

iVillage Member
Registered: 06-18-2004
Sun, 06-22-2008 - 9:47am

No, I think she is talking about the insurance that is either a percentage of amount owed or a flat rate added to your balance every month that is supposed to protect you in case of disability or job loss.

iVillage Member
Registered: 06-09-2008
Sun, 06-22-2008 - 1:06pm
If you don't mind me asking how much do you have in cc debt? As for being in debt at 27 don't beat yourself up too bad. When I was 23 I filed bankruptcy and was entering my senior year in college. There are others out there who share your situation so just know that you aren't alone. I guess my advice to you would be to is to figure out how much cc debt you are in. You can meet with a bk atty for free-in most situations-they can asess your situation and give you advice on what to do. In the end its your decision. I would advise you to at least meet with 3 bk atty if you decide to file. Go to the the consultations and see which one you like better. Bk is a scary process I think b/c its so unknown. I would be lying if I said that I wasn't scared to death. I could have curled up into a ball and died the day of my 341 hearing. With that being said you can't imagine the relief when the hearing's over (about 10 min in my case). Bk for me was my best option and although I regret that I put myself into that situation with being on debt overload it was ultimately the best thing that I could have done to file bk. If you think that's your only option-to file bk-then meet with an atty and get the ball going. You'll feel better sooner and you'll be one step from learning from the situation and putting it behind you. Keep us posted on what you decide!
iVillage Member
Registered: 06-01-2008
Sat, 06-28-2008 - 7:36pm
Thank you so much to everyone for their advice. After much research and talkign to a few people who have gone the bk track I am going for it. I tried to talk to some credit councling agencies and the amount they want it way more than I can aford. I have student loans I pay on each month along with other bills so it really does not benifit me to use the councling agencies. I am going to meet with a lawyer this week and hopefully I am going in the right direction for my furture. This lawyer came highly recomended and i know a couple of people who have used them in the past. So, here goes nothing!

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