Anyone notice this when stop paying most bills?

[Over our heads]

I also thought that once we stopped paying the CC's it would be easier. I thought it would be easy as pie to save the money to pay the lawyer. Luckily or unluckily, we cashed out dh's 401k when he job changed, and had the money to pay 1 lawyer for another legal issue (a good one) and the retainer for our BK lawyer.
But, when actually doing our budget, and mine is pretty primitive with a paper, pen, and a calculator from middle school (I'm 32!), I discovered that we didn't have near as much left as we thought we did. Since we are no longer using CC to pay for rx's, there goes all the 'extra'!

Just yesterday I ran off the road, (winter can be over now) did quite a bit of damage to my van, but since they are quoting 3 weeks to finish the work, we will be able to have our 500$ deductible, simply but slightly cutting back on groceries. And my driving of course!

I suppose the silver lining in preparing to file this time of year is the almighty tax return. If you get enough back, you can pay your lawyer. Be it the same everywhere idk, but here paying your bk lawyer in full isn't considered a preferential payment. Stock up as much as you can on groceries/toiletries, and that will save you some for the next couple of months.

Figure out a workable budget for yourself, that is the most important thing.

[liz417]

I suppose the silver lining in preparing to file this time of year is the almighty tax return. If you get enough back, you can pay your lawyer.

Our state is issuing IOUs this year I planned on paying my final payment to my attorney (ch 13) with my tax refund...do you think he'll accept a State IOU???

[Over our heads]

Our state is issuing IOUs this year I planned on paying my final payment to my attorney (ch 13) with my tax refund...do you think he'll accept a State IOU???

Is that an IOU for your State refund or your Federal refund? Good lord almighty, I wouldn't even accept an IOU from the state! And honestly, with the amount of people needing to file bk, tax refunds this year are going to get spent. Groceries, any home repairs needed, dr. visits, vehicle tune-ups you name it!

And what about the people who have gotten behind on their mortgages, gotten successful mods, and now need to play catch up? Tax refund right back into the flow of things...

IOU's for tax refunds...the world is officially over as we know it!

[Mi Bankruptcy]

I wonder if you can send CAL to a collections Agency? LOL.. Of course, I suppose I skipped out on my IOU's to my credit cards and Hospital bills.

[inpain66]

Wow. It is crazy that I am not alone in this. It seems like most Americans are living above our means.

Student loans really put me over the edge as well as 100 a month parking.

I bring home 1800

rent plus bills is 900-950

car payment is 280

student loans 300-500

parking 100

gas and food= whatever is left

I need a Miracle to pay for the lawyer. I just found out that I will be owing the IRS 1,000.00 this yr too! Where will I get the money? My insurance will be due in May in the amount of 900.00 plus I need inspection next month. Sometimes I feel like I am a zombie going through the motions and there is no enjoyment in living anymore.

[CatsInTrouble]

Hmmm. How much were you paying monthly to credits cards? We were paying 2k/mo and we defintiely feel and enjoy the wiggle room! Everything has loosened up a bit. Not so much sqqquuueeezee and panic.

[hopejones]

I know this isn't a popular concept to some on this forum, but, is it possible that running out of money before the end of the month, even after stopping unsecured debt payment and credit card use is due to an increase in the cost of living? Not just because of living beyond our means due to credit card use?

Looking over my last 4 years of tax returns, my income has stayed the same since 2005, and yet I'm paying more for everything! In this economy, I'm thankful to at least maintain my income level, and yet I'm paying almost $4 for a gallon of milk.

That's a very good point Shinyandnew. I think that's part of our problem too. Good thing gas prices have come down or we would be a lot further in the hole (fingers crossed behind my back). We took a good hard look at our budget & cut back on groceries & eating out big time. Now we are operating at a $178/month deficit instead of $300.

A big part of our problem was that we were using our credit cards to pay for necessities like groceries, light bill, phone bill, etc. Now that we don't have those cards, we have to pay for those things ourselves. That may be what's making it so hard for you too.

[inpain66]

Yes. Food and gas went on cards before so now I drive around on empty and eat noodles and rice every day. It is terrible. I have put on 20 lbs since august because I cannot afford healthy foods anymore. I am also getting sick often since I am not eating healthy. This is the worst time of my life ever.

[amy1385]

I'm in the same boat as some of you - after stopping payments on cc's, my finances are still very tight. It just makes you realize how much you (me) were relying on credit cards.... I had no idea just how much until they are not there anymore! But I will never go back... 341 tomorrow - don't have any fingernails left!