What to tell creditors?

[katie]

Hi, I am new here. I was just wondering what to tell creditors when they start calling? We have always been current on our bills until this month and I'm so worried. My husband's work slowed down to nothing leaving us with no income and no unemployment benefits since he was a partner. My salary was able to ride us out a couple of months, but now can only handle mortage, utilities and car payments. Nothing left for credit cards. My mom has been buying groceries and taking care of babysitter money.

I met with a lawyer Tuesday a week ago and took all of my information back that he needed a week ago which was last Friday and haven't heard anything back yet. We were going to file Chapter 13, but when he looked at our debt, he suggested we try Chapter 7. He is going to have to do the long form for the means test as we don't pass the short form. I filled out the long form twice online myself and we passed so I don't think we will have a problem.

Sorry to ramble, but I am just so confused and humiliated and embarrased. Please don't judge but do you have any advice as to what to tell creditors when they start calling? I have heard NOT to tell them we are even thinking of filing yet. Is this true?

Thanks - Katie

[Mi Bankruptcy]

Hi Katie,
Do a bunch of reading and searches. Then ask a bunch of questions. Here is a script I used to deal with creditors. We did it the same way you are doing it. Creditors had no idea. I never did record a call. Hopefully your attorney is allowing you to send the creditors to him. Don't talk to them or fall in the trap of arguing. That is what you pay your attorney for.

** Do not deviate from this script**

Hello,

May I ask who is calling (if they don’t tell you who is calling ask the question again) This phone call is being recorded if you do not wish to be recorded please hang up now.

This is Mr. or Mrs. I am currently filing for Bankruptcy if you believe I owe you a debt you will have to contact my attorney for further information.

Would you like my attorneys name and contact information?


If they harass you your reply is:

My attorney can answer your question would you like his/her name and contact information?

Since you do not wish to contact my attorney regarding your question I must terminate this call. Have a Nice Day (Hang Up)

[lookingforward]

Don't be humiliated or embarassed. It's not your fault. Your situation sounds a lot like mine. I had never ever been late either, and the combo of the economy and the hurricane here in September hit our small business hard.
There wasn't any extra money after the absolute basics.

Just hang in there, it will be all right!

The way I handled it was to ignore it. I haven't been answering the phone or dealing with the collection agencies. So far, since September, there hasn't been a whole lot to deal with, other than the phone ringing off the wall.

Remember how many people are in the boat with you right now!

[katie]

Thanks

Thanks Mi Bankruptcy. This is just all so overwhelming, I never thought this would happen to us, never. I just kept thinking the economy would improve and get better, and it just kept getting worse and worse. The part I'm most worried about is we had to use credit cards, I stopped using them when we realized we may have to file. I think our last charge is like January 1st or 2nd. We had to use them for living expenses, fuel, groceries, some medical, etc. We had to cancel medical insurance too last month. We have a daughter who has a mild cerebral palsey and a sensory disorder - so we will probably have a hard time getting approved for insurance once again whenever we will be able to afford it again. She just turned 4 and had extensive physical, speech and occupational therapy since she was about 6 months old until she was about 3. We were just trying to avoid filing, but now see there is just no other alternative.

[katie]

Thanks for the support lookingforward. I just keep thinking one night (hopefully sonner than later) I will be able to sleep again at night without having to worry about all this stuff.

[magyar123]

If they call on your cell phone - just pick it up and claim that you're driving and that it is illegal for you to talk on the cell phone while you're driving. Even if you're only sitting at home.