I Think I'm In Worse Shape Than Most...

[redhead]

Hi! I've been trolling around, reading these forums for awhile, trying to gauge just what I should do...

I'm currently unemployed, and I just got served with papers for an old CC debt-- I assume this is the first of many. In my area, it costs over $150 to 'respond' to the summons. I called a legal aid attorney and she said to basically do nothing. Wait until I get a job. Then file Chapter 7.

I'm well below the means test both this year, and last year. Should I follow her advice and wait until I get a job to file? Why? I'm losing sleep, my stomach is in knots, and there's no one I can talk to-- I'm so ashamed I got myself into this position. (I know, I know-- you guys have all heard or said it before. Still. It hurts!)

Also... I've been offered a job at a hotel that has yet to open (I bartend). The offer is 'conditional,' and we have no idea when the property will open. Because I have no income right now, I consider myself unemployed. Is that even accurate?

I've gotten in contact with CCCS in case there's any chance I could do some sort of payment plan (borrow money from my boyfriend until I'm making money again, etc.) and, as I said, legal aid, plus Catholic Charities, looking for someone to help me... It feels so useless, though.http://www.bkforum.com/images/smilies/sad.gif

[music12]

i think they suggest that you wait until you get a job because once you file, you will have no cc's to fall back on, and if you are still unemployed that could mean not being able even to buy food. and if you file right when you get a job, then the income from your new job will not push you into a ch13 because they are not supposed to consider post-filing income.

however, a lot of people on this forum worry about getting a job during bk7, and some bk lawyers have suggested for people not to get a new job for a couple of months after filing, which conflicts with what the legal aid attorney told you unless whatever job you get will have a salary under your state's median, in which case it won't matter for the bk7 that you got a job right when filing.

don't be ashamed. remember that your self-worth is not the paycheck that comes in at the end of the month, or doesn't come in at all. it's who you are and what potential you have. plus you do have a job waiting, which is more than 9.5% of the population can say for themselves these days. everybody is unemployed. don't worry about it. hang in there.

[keepmine]

First things first-get some sort of job, WalMArt, MacDonalds, doesn't matter before you think of filing.
Don't go to CCCS using someone else's money. Save his support for when it can really help which is helping you cover the basic living expenses until you get your finances straightened out.
Don't worry about lawsuits. The underlying debt that created any judgments will be discharded in bk. All they got is a worthless piece of paper.

[AngelinaCatHub]

First things first-get some sort of job, WalMArt, MacDonalds, doesn't matter before you think of filing.
Don't go to CCCS using someone else's money. Save his support for when it can really help which is helping you cover the basic living expenses until you get your finances straightened out.
Don't worry about lawsuits. The underlying debt that created any judgments will be discharded in bk. All they got is a worthless piece of paper.

Keepmine is right with one exception I disagree with: If you are in the pain you described, attempt pro se if you are up to it, or have BF help you and get filed right away. This will take an enormous amount of stress off of you. Your health will suffer if you stay as worried as you appear to be.

It is not a shameful fact that you need a "new start" in life. Why do you think we are all here? I am not ashamed. I am human, made mistakes, many. Made the right business decision, and am free and happy now, not to make the same dumb mistakes again.

Stop using your credit cards right now. Get a job if you can but not a requirement as mentioned above. Getting relief is most important for you at this time. Your best start is this forum, as you keep reading, you will see you are not alone. Those of us with experience now advise because, we have been there, done that, and have learned ways to sooth ourselves, and pass this on if we can. 'Hub

[jadams]

First things first-get some sort of job, WalMArt, MacDonalds, doesn't matter before you think of filing.

While I understand your point, and perhaps I'm misreading -- that has an offensive tone to me.

Have you tried getting a job recently? I have.

Those jobs at Wal-Mart and McDonald's? They either don't exist, or they have 432 applicants for a $7.00/hr cashier position ---- and almost immediately dismiss anyone with education and training beyond high school. (They're not "long term" prospects, or "won't be with us long", just "using us for the time being"... etc.)

I think it's harsh to assume that the OP hasn't tried to get any and all jobs available to her. People generally don't want to be unemployed and relying on others for basic living expenses.

------

Can your BF support your living expenses in the near future until you find a job? If things went south with your BF, do you have another family member that could help out?

If so, I would suggest doing the CH 7 now, clearing up that mess and getting that stress off of you, and then resuming the job hunt. You won't be 100% at your new job if you're spending it restless at night stressed about possible law suits.

If it's gotten to the point of suits, I doubt you have available credit to use in an emergency anyways.

If you have health insurance coverage, great. Otherwise locate your nearest HRSA (http://findahealthcenter.hrsa.gov/) and do an intake interview. You'll need proof of income and all that, but they bill on a sliding scale and it slides all the way to $0. I suggest the intake interview so you are already approved for free/low-cost treatment ahead of the next time you're ill.

Several even have dental practices.

Also, apply for SNAP benefits (food stamps). You may qualify and that small amount would help reduce the amount you rely on the BF at present.


Good luck, I hope things pick up soon.

[JRScott]

I've been there and done that. The Stress can actually kill you. It is business like to make the decision to file after you've found a job, but the stress can be a lot.

Assuming you own no assets though, and that you have no job there is not much they can do. basically they'll get a judgment. Since you have no job there are no wages to garnish, most likely as a result you don't have a bank account that can be levied. Thus really speaking about all they could do at this point is get the judgment and then sit on it hoping your situation improves so they can actually collect on it.

Don't worry about the judgment itself, without assets for them to collect it is meaningless and they can be vacated by a bankruptcy after you find a job.

Finding a job is tough right now, there are just so many unemployed. In many cases there are more applications coming in than can be reviewed easily. Thus the first impression you make when you turn in the application if you do it in person can be critical to getting a job as it might make sure your application is reviewed. Make sure to look sharp when dropping off the apps in person.

[keepmine]

While I understand your point, and perhaps I'm misreading -- that has an offensive tone to me.

Have you tried getting a job recently? I have.

Those jobs at Wal-Mart and McDonald's? They either don't exist, or they have 432 applicants for a $7.00/hr cashier position ---- and almost immediately dismiss anyone with education and training beyond high school. (They're not "long term" prospects, or "won't be with us long", just "using us for the time being"... etc.)

I think it's harsh to assume that the OP hasn't tried to get any and all jobs available to her. People generally don't want to be unemployed and relying on others for basic living expenses.

------

Can your BF support your living expenses in the near future until you find a job? If things went south with your BF, do you have another family member that could help out?

If so, I would suggest doing the CH 7 now, clearing up that mess and getting that stress off of you, and then resuming the job hunt. You won't be 100% at your new job if you're spending it restless at night stressed about possible law suits.

If it's gotten to the point of suits, I doubt you have available credit to use in an emergency anyways.

If you have health insurance coverage, great. Otherwise locate your nearest HRSA (http://findahealthcenter.hrsa.gov/) and do an intake interview. You'll need proof of income and all that, but they bill on a sliding scale and it slides all the way to $0. I suggest the intake interview so you are already approved for free/low-cost treatment ahead of the next time you're ill.

Several even have dental practices.

Also, apply for SNAP benefits (food stamps). You may qualify and that small amount would help reduce the amount you rely on the BF at present.


Good luck, I hope things pick up soon.

Not sure what created the bellyache with my post. Of course I know times are tough but, that doesn't change the fact that post bk you still have to be able to support yourself. You just have to keep knocking on doors. All you need is 1 person to say yes.

[dingdong]

How old is the CC debt you were served on?

If it is past your states statute of limitations (SOL) you can use SOL as an affirmative defense.

Basically get the lawsuit dismissed if the debt is past SOL.

When was the date of last activity on your debt and what state are you in?

You mentioned it was "old cc debt", so hoping it is old enough to be past SOL.

[Penny Less]

Hey RedHead remember this is a business decision. Your financial life is a business and things don't always work out how we hope. It's very easy in our society to have a bad year or years.

I come from a Jewish financially oriented culture and reading this forum - knowing what to do and how I'd been used by banks who fed my delusions with credit and the idea that I could make everything work eventually - this forum saved my sanity and health.

So, relax, breath, you've found this forum. Bankruptcy will let you start again - don't sweat the judgements - they sound scary but will go away once you file.

[bkmaggster]

Chiming in with another opinion. I don't have a job, but do have a job starting in September/October. I am using my unemployed time to file pro se (definitely not something I wanted to be doing while working a minimum wage job - which are always the most physically and mentally exhausting.)

For me, the idea of judgements was way too much stress to wait until my job started. The conventional wisdom is not to file until you have a job so that you can use credit as a fallback while you are unemployed, but I stopped paying credit cards over a year ago, so no one is going to extend credit to me anyway.

I want to reiterate what was said above about min wage jobs - they aren't interested in people who have held professional/office jobs in the past. I have a master's degree and pretty much got laughed out of the mall.

And the credit card counseling places are basically crooks and just steal more of your money that is going to end up in bankruptcy anyway, at least that was my experience.

I think if you are pretty sure you will have a job in a few months and can lean on your BF until then, go ahead and file now.

[redhead]

Chiming in with another opinion. I don't have a job, but do have a job starting in September/October. I am using my unemployed time to file pro se (definitely not something I wanted to be doing while working a minimum wage job - which are always the most physically and mentally exhausting.)

For me, the idea of judgements was way too much stress to wait until my job started. The conventional wisdom is not to file until you have a job so that you can use credit as a fallback while you are unemployed, but I stopped paying credit cards over a year ago, so no one is going to extend credit to me anyway.

I want to reiterate what was said above about min wage jobs - they aren't interested in people who have held professional/office jobs in the past. I have a master's degree and pretty much got laughed out of the mall.

And the credit card counseling places are basically crooks and just steal more of your money that is going to end up in bankruptcy anyway, at least that was my experience.

I think if you are pretty sure you will have a job in a few months and can lean on your BF until then, go ahead and file now.

Thank you EVERYONE for your advice... I do have a college degree (um, fine arts... from one of the best schools in the country... WORTHLESS.) and will someday have an MFA. (I never learn, do I?) I live in a major city, so it's not uncommon for people with similar backgrounds to have service industry jobs and be paid fairly well; the 15% tip doesn't really exist here. I'll never get rich doing it, but it gives me enough to live comfortably. Or, it would if I didn't have three-year-old debts that have more than doubled. I sincerely doubt I'll ever be able to repay them.

So, from what I gather, it is merely a legal opinion that I should wait to file... not required. I've looked at the various forms I need to fill out and what sort of documentation will be required (tax forms, paystubs from the last few months) in my state, and from what I gather, I need to do a credit counseling session or two? Is that the first major expense in this situation?

Ugh. I am not happy right now, but I am really glad I found this forum... Thanks!

[bkmaggster]

Thank you EVERYONE for your advice... I do have a college degree (um, fine arts... from one of the best schools in the country... WORTHLESS.) and will someday have an MFA. (I never learn, do I?) I live in a major city, so it's not uncommon for people with similar backgrounds to have service industry jobs and be paid fairly well; the 15% tip doesn't really exist here. I'll never get rich doing it, but it gives me enough to live comfortably. Or, it would if I didn't have three-year-old debts that have more than doubled. I sincerely doubt I'll ever be able to repay them.

So, from what I gather, it is merely a legal opinion that I should wait to file... not required. I've looked at the various forms I need to fill out and what sort of documentation will be required (tax forms, paystubs from the last few months) in my state, and from what I gather, I need to do a credit counseling session or two? Is that the first major expense in this situation?

Ugh. I am not happy right now, but I am really glad I found this forum... Thanks!

Ha ha, I have an MFA, also from one of the "best." I wonder if we went to the same school. You're right, it's not required that you wait to file until you have a job. You do need to take a credit counseling class before you file, and one after you file. You can do this online for around $25-$50 per class. It's not a big deal at all.

Go get yourself the Nolo Chapter 7 book. It will answer a lot of your questions. In fact, you may just want to head over to Barnes and Noble and read the first chapter about deciding to file while sitting in one of their comfy chairs for free.

[redhead]

Go get yourself the Nolo Chapter 7 book. It will answer a lot of your questions. In fact, you may just want to head over to Barnes and Noble and read the first chapter about deciding to file while sitting in one of their comfy chairs for free.

Okay, dumb question... what is 'nolo?'

Also, I got two call-backs for bartending gigs, so I know I will soon have a job... even if it's just part-time... I hate that it's a holiday weekend; there's nothing to do except sit and wait and [quietly] freak out more and more.

[bkmaggster]

Okay, dumb question... what is 'nolo?'

Also, I got two call-backs for bartending gigs, so I know I will soon have a job... even if it's just part-time... I hate that it's a holiday weekend; there's nothing to do except sit and wait and [quietly] freak out more and more.

From Nolo's website: "We are the nation's oldest and most respected provider of legal information for consumers and small businesses."

They have a website and publish books with a lot of great do-it-yourself legal info.

I hope you get the bartending gig!

[music12]

and, nolo's website is, simply,

nolo.com

you can go under "property & money" and get some info on bk even before buying the book.

instead of sitting around and freaking out, why not go out to see the fireworks? celebrate the holiday - think of it as the coming independence of your debts. celebrate life. think of how much worse things could be, then be thankful for how good you've got it. for example, did you ever think what would happen if bk did not exist? you'd be stuck with these creditors forever!!!! scary as hell, i think...