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[acl1974]

Hello everyone. I feel like a two-time loser. My husband and myself filed in our mid-20s after I had to go on unpaid maternity leave and the crap hit the fan and never recovered. Well, now we've dug ourselves another hole. We have more than $10,000 in debt and my husband's hours were cut for more than a year now (auto plating company). So, we almost lost our house and I dropped all credit card payments, which we really could have handled before my husband lost so much work. By the time I finally dug myself out of the house payment hole by negotiating a mortgage modification that cut $400 off my house payment and put us up to date, I'd already been sued by one creditor for $3,500 and have recently been sued by a second for $1500. We cannot qualify for a Ch. 7 until June because that is when our 8 years is up (I want to cry that I'm in this situation again), but I can't allow my wages to be garnished either because then I'll lose the house. I am on a payment plan for the $3500 judgement (only $50 a month because I had a breakdown in front of the judge and I think he felt sorry for me or thought I was a total nutcase). The second judgement is being contested by me because they said they served me, but never did. I know I'm just stalling, but I was pretty upset that they lied about serving me, or had a lazy process server. I was served for the first one just fine. Anyway, I've done the means test online and although we are under the median, it seems that with that mortgage modification I may have messed everything up with qualifying for the chapter 7. I think I might be doing something wrong, though, because we really don't have any money left over. We were working with negative dollars and were behind on utilities as well before the modification. I need to see an attorney, but is it too soon since we cannot file until June? Thanks and sorry this is so long.

[jeb]

Never too soon to see an Attorney to find out what you need to know and to put everything in place before you file.

But, boy, sure seems sad to have to file BK with only 10 grand in debt. As you know, if something serious happens in the future you don't have BK as an option.

Good luck. - jb

[acl1974]

I agree. I'm feeling pretty crappy about it. I wish I could scrape up some money to settle. I could probably get the money to settle with the current people who are suing me, but that is the money that I'm using to pay for the attorney and then if someone new comes after me (my debt is made up of a bunch of small amounts with $3500 being highest), I won't have anything to give them besides a payment plan or to pay an attorney. I'm just so stressed over it. Part of me says to let this judgement come, set up another payment plan of $40-50 a month and then wait to see what bomb drops next or if things improve with the economy and we can come up with settlement money. It's so hard to try to sit down and predict the future at this point. I worry about medical disasters after I file. What would happen to me then and I have two kids to take care of? I don't know what to do. I just wish my husband would find a better paying job, or even a job with a steady 40 hour paycheck (I work too, but so far I'm pretty secure as far as hours/job security go).
Thanks for the response.

[Brighterdays]

I know this all sucks, but are you filing over only 10k and a payment of $50? If it were me I would continue the $50 a month. I know 10k is a lot of money, but if something life changing comes up, ie medical bills. It would be a shame to lock yourself out for another 8 years(if they let you file a 3rd time). I would get a free consult with an attorney to see what they can do about your current situation.

[acl1974]

Thanks. I agree that I definitely should get the consult. The first time I filed, it also wasn't for too much (15,000) in comparison to some people who are forced into bankruptcy. My issue isn't so much the 10,000 because I was planning to work on it once we got back on our feet and saved our house. The worry I have is that I'm now facing a second judgement and if I get my wages garnished, I am going to lose my house, car and so on. 25 percent of my take home pay would kill me.
I suppose I could go to court and see what kind of payment plan I can get for this second judgement (after I fight the fact that I wasn't served) and then wait for the next bomb to strike. I'm just so tired of worrying about money. It's all I've done since I graduated from college and believe me that I have nothing great to show for it. I used credit cards in my life to buy food and pay rent and those types of things. My husband has a cheap leased vehicle and I drive a piece of crap that has 155000 miles on it. Seriously, we live like paupers, you'd think that I wouldn't be in this situation - again. I keep thinking things will get better, but they never do. Now, I'm just sitting here feeling sorry for myself when people are facing even tougher situations so I'm going to end it here. Thanks again.

[BkinTX]

10k does seem like very little...even with our low income we wouldn't file over that.

You have your reasons. I hope it goes well for you.

[acl1974]

Honestly, it really does seem like a lot of money to me, but maybe it's because I've never had any money in the first place? I don't know. It just seems like a lot to me when I'm struggling to make a $300 gas bill before they shut it off or almost losing my house. Trust me, I don't want to do this. I just don't know what to do about the calls, lawsuits and so on when I can't scrape up the money.
I did a search and it does seem that there's some pretty high balances on the board so I look kind of ridiculous. I apologize for posting. Good luck everyone.

[StartingOver08]

Can you post a little more details about your situation? Your State so we can check your exemptions and your gross income? Also what your payments are...maybe we can help you work through this. Post as much detail as you can. Sometimes the answer is there, but we can't see it when we are stressed. We have a pretty insightful bunch of people on here that have some great ideas for overcoming mountains.

[Brighterdays]

I too would like some more info as if there is a chance you may lose your home, I doubt bk'ing over a $50 payment or 10k will save your house. The bk is a "get out of jail free" card and should be saved for dire situation. I wasn't making lite of the amount, as 10k is a lot of moneyto me also right now. Without more info (gross income, other liabilities...) we really cant give too much advice. I truly mean no offense, but a part time job at $8 an hour for 10 hours a week, will pay this off in about 2 years(yes I know jobs are scarce). Maybe less if you can negotiate with the lenders. They may not negotiate though if they already have a judgement. Good luck and keep us posted

[acl1974]

Ok. It won't save my house by getting rid of it. I already managed to fix my housing situation by petitioning the bank for a modification. However, if I get garnished for a judgement, even for a small amount, they'll take 25 percent of my checks. Then, I won't have enough money to make the house payment, utilities, car payment and so on. That's the only problem I have. The only way to prevent a garnishment is bankruptcy. I'm just trying not to make things worse for me by doing nothing. That's all.

My husband and myself make $60,000 a year total. We have $70,000 in student loans (between the both of us), $155,000 house, car lease for $300 a month, a car that freaking keeps breaking down and needs repairs, utilities and so on that everyone else has. I cannot get a second job because my husband and myself work split shifts and it would cost too much to hire someone to watch my kids so one of us can work another job. I'm going to see what happens with everything before I jump to file. I'm hoping I can ride it out and possibly work with the creditors now that I'm caught up on the house due to the modification. With all of my income not going into back payments for the house, I might be able to make small payments to them, but I'm not having luck negotiating much at this point.

[Iamtoobroke]

acl--I was in a situation in some ways very similar to yours. I was sued by a creditor over a 4000.00 debt. I certainly could not afford to be garnished. I filed on around $11,000--though it was actually around $15,000 in the petition since some of the debts were listed twice as collection accounts. About $8000.00 was CC. The rest was medical. I am pretty low income and the garnishment would have meant that I could not have paid my basic living expenses. I know I have used my "get-out-of-jail-free" card now so if some other crisis comes up I'm screwed, but given my situation, it was the best decision. Amounts of filing are relative to income--$15,000 is a HUGE amount of money to me!