losing sleep over my mistakes

[allalone22]

Hi everyone,

It took me a few days to type this out because I am so embarrassed by my behavior, I don't even really want to tell anyone. I wish I had family to turn too, but sadly it was just me and my dad since in high school and I buried him a few years back.

I'll stick to the basics. I am a degenerate gambler. I have lost any excess money I have to gambling.

I was in the process of filing for bankruptcy pro se early last year and I hit a jackpot for 60k. A normal person would utilize that to pay off debts and I intended to, but I was dumb and wasted it all away. Right now I am where I was at 10 months ago.

Debts-

20k unsecured debt.
Wage garnishment for a judgement. Original debt =3700. Paid so far 4700, debt left. 8k.
Other medical and utility bills ~2k
apartment evictions ~5k
student loans (i know i can't discharge) - 75k

Assets -

one car (KBB - 8200; NADA - 7800) purchased 6 months ago
1 tv - 450
1 xbox+games - paid roughly 500 for all
1 computer - paid 800
misc furniture - around 500
Tax Refund - 2300 (haven't received, but possibly being taken by student loan company) if not, there are other people waiting to collect from me.

other info:
make 24k a year (looking for new job for increase in pay)
pay child support (directly taken out of my check, not behind)

take home pay after taxes, garnishment, and child support =1050
monthly hard expenses (rent, electric, etc) ~ 700. I have moved in with some friends to shed some expenses.

I am sick to my stomach knowing that I wasted all my money on stupid stuff and it took an attempt on myself to give me the rock bottom wake up call I needed.

I will be joining an GA, not stepping back into a casino/betting parlor/online betting.

What do you guys think my options are? I have placed my car for sale in order to purchase a cheaper one, but my car is my only mode of transportation and I drive out of state for my job on a monthly basis, so I'd hope I could keep it.

Also, I did reach out to an attorney and paid him 500 dollars to negotiate debt settlements. That was 6 months ago and no contact/emails from him at all. Well, I obviously wasted that money I was going to use

sorry this was so long, but i had a lot on my chest

[mizg]

All I can say is that I know how you feel....not on that scale but spending money on gambing and the sickness that follows when you realize that you spent your money so fast is just....awful. I cried when I would get my check because all of the pay day loans that I took out just to cover the the bills....I dug myself deeper and deeper.

From what I know...you will most likely get to keep the car and you will still need pay the student loans...

Keep us posted...

[papie]

I would suggest consulting with a good bankruptcy attorney.

A good attorney would not do what your debt settlement attorney did to you.

Admitting you have a problem is the first step, and you've already done that. I think the next step is to try to clean up your financial life. And really, if you've been through a gambling addiction, bankruptcy is easy. I was terrified and so upset at the thought of bankruptcy, but it's really not the end of the world that people make it out to be.

[df04527]

Just a concern where you say you will be joining GA. My thoughts are that you need to tackle that problem first then you may be ready to tackle the resulting financial woes. Doing a BK before you get on the road to recovery could be a waste of time and money. Again my most humble thoughts.

[allalone22]

thank you for your replies.

I definitely am getting into GA before I try to tackle my financial woes, but I also wanted to do my part and reach out. Thank you for the support

The debt settlement attorney is a pretty decent bankruptcy attorney in the area. I think he just plainly forgot about me. Do you think I would be able to recover the 500 dollar fee I gave him since he hasn't done anything?

Also, I think one of the terrifying things is trying to explain to a trustee/judge that I squandered away 40+ grand (since uncle sam got his share) in about 10 months with nothing to show. I will search around for a good attorney and hope I get my refund back.

I tried to call the judgement place myself since I have paid more than 1000+ than what I originally owed, but they wouldn't accept anything less than 4500 additional of the remaining 8k balance. This is killing me for easily 120 a month I could be putting towards fixing my situation.

Also, when I had the money, I put down 400 dollars on a secured credit card because my ultimate goal was paying back creditors and rebuilding my credit.

Should I cancel that? or can I continue to use it. (have not missed a payment, have had it for almost 6 months now)

[mountanddo]

I would definitely get into GA today. They have meetings 7 days a week so you should be able to find something somewhere. I agree that this is your main concern right now. You had the cash to pay off debts that quickly turned into wage garnishments. I'm curious as to what you spent it on as you have nothing really to show for it. Did you gamble away the cash you won? You have a child to think about and it sounds like you are paying your child support however with the debts you have and the low income it may be that may be in jeapardy too. Please get into a meeting and then think about BK.

[allalone22]

I would definitely get into GA today. They have meetings 7 days a week so you should be able to find something somewhere. I agree that this is your main concern right now. You had the cash to pay off debts that quickly turned into wage garnishments. I'm curious as to what you spent it on as you have nothing really to show for it. Did you gamble away the cash you won? You have a child to think about and it sounds like you are paying your child support however with the debts you have and the low income it may be that may be in jeapardy too. Please get into a meeting and then think about BK.

I have already signed up. My first meeting (I chose closed meeting since I am still embarassed) is friday. The garnishment was pre winning the money. The garnishment has been taken out of my paycheck for almost 3 years now (which is why I have almost 5k paid towards the original debt of 3700. The issue with that is there is about 8k in "interest" that the company will not forgive, even though I have paid more than the original debt (i understand business, they have a garnishment why not squeeze out every penny because I was a bad customer)

I have held my job over 5 years and I do not plan on quitting or getting fired( I am a good employee) so I am hoping that helps me overcome my difficulties

as for the money, here is the breakdwon

60k won -
17kon taxes
10k on car (now worth less)
4k giving cash to friends in need (funny how they come out after you win money). There is no way to get this money back. I have asked, but they simply do not have it
spent 2k to go visit my family
approx 1k on electronics/furniture

the rest has been spent on gambling. it sickens me to know how much that is

[btbeme]

All22, some cold hard reality for you...

- As stated above, and as you well know, a BK will only reset the financial clock but not solve the real problem. You must take action on your problem first, and make some serious progress before a BK. I have a compulsive gambler in the family who squandered not only his life but the lives of those around him through theft and deceit. It is a tough addiction to break, but frankly you don't stand a prayer until you do.

- Once the gambling is contained, I'd move forward with the BK. At this point, with the expenses you have, I'd suspect that you are pretty much judgement-proof and that any further garnishments would likely be turned down by the courts. But, I don't know that for sure. Keep working and earning, and pay your non-dischargeable obligations. The student loans are a bit of a tangle, but if you aren't paying them now, then no need to start, really. Your refund is probably gone, as you guessed.

- Selling the car would likely be a mistake, since it is a ticket to work and would be exempt in a Ch 7 using the Federal exemptions. Pretty much everything you own would be exempt. Selling it would not move you forward, since your debts (except student loans) will get swept away in the BK. Keep the car, keep the stuff. Start putting away some cash for the attorney you will eventually need.

- You should spend more time thinking and planning of a post-BK life than thinking about BK. Your BK will be technically easy, though it will be ugly and painful as the Trustee may want to dig deeply into your finances, and getting the judgement and garnishment removed will add extra steps. All other considerations aside, I'd expect the student loans to start garnishment after BK unless you figure out a way to make them whole coming out of BK. It is also possible that your child support could increase. Just saying - you need to get all of this calculated and considered before filing, because you won't get a vacation from your obligations - only a fresh crack at them.

You are not alone, but we can't do this for you. So get going - get to GA now, because the sooner you stop the garnishment the better off you will be. Don't blow your one and only chance to make something positive out of this for you and your child.

[allalone22]

All22, some cold hard reality for you...

- As stated above, and as you well know, a BK will only reset the financial clock but not solve the real problem. You must take action on your problem first, and make some serious progress before a BK. I have a compulsive gambler in the family who squandered not only his life but the lives of those around him through theft and deceit. It is a tough addiction to break, but frankly you don't stand a prayer until you do.

- Once the gambling is contained, I'd move forward with the BK. At this point, with the expenses you have, I'd suspect that you are pretty much judgement-proof and that any further garnishments would likely be turned down by the courts. But, I don't know that for sure. Keep working and earning, and pay your non-dischargeable obligations. The student loans are a bit of a tangle, but if you aren't paying them now, then no need to start, really. Your refund is probably gone, as you guessed.

- Selling the car would likely be a mistake, since it is a ticket to work and would be exempt in a Ch 7 using the Federal exemptions. Pretty much everything you own would be exempt. Selling it would not move you forward, since your debts (except student loans) will get swept away in the BK. Keep the car, keep the stuff. Start putting away some cash for the attorney you will eventually need.

- You should spend more time thinking and planning of a post-BK life than thinking about BK. Your BK will be technically easy, though it will be ugly and painful as the Trustee may want to dig deeply into your finances, and getting the judgement and garnishment removed will add extra steps. All other considerations aside, I'd expect the student loans to start garnishment after BK unless you figure out a way to make them whole coming out of BK. It is also possible that your child support could increase. Just saying - you need to get all of this calculated and considered before filing, because you won't get a vacation from your obligations - only a fresh crack at them.

You are not alone, but we can't do this for you. So get going - get to GA now, because the sooner you stop the garnishment the better off you will be. Don't blow your one and only chance to make something positive out of this for you and your child.

Thank you for your advice. I have heard that I should wait at least a year before filing BK due to my winnings because the trustee can reject my bk based on the fact I could have repaid my creditors. I don't mind paying my student loans (I actually want to pay them), but I also am trying to deal with reality that I barely make enough to cover my living expenses.
If I could get the one garnishment off my back, I am not even sure I'd have to file BK.

[btbeme]

All22, I would recommend that you speak to a BK attorney ASAP, if for no other reason than to get a timetable together. They may be able to help with a garnishment, but the best and most sure way is to BK it out.

Set some goals and deadlines for making progress on this. You will need to have the attorney see dates and amounts where you won, lost, spent, and gave away any significant amounts of money over $300 or so in the last year. Ballpark figures and dates will probably be OK. The one year lookback on payments is a significant hurdle, but that is generally only for "preferred" payments to insiders, etc. Payments to unsecured creditors do not matter after 6 months.

The tax issue should also get resolved, with a final outcome of your refund (find out where it went). If it comes to you, that is income and may play a part in your timeline. In the meantime, adjust your withholding so you do not expect a refund next year. That might help squeeze a few extra dollars per paycheck and will definitely help in your filing.

The majority or all of your stuff should fit under exemptions. If you do sell anything (to pay the BK attorney), keep track of the sale and the payment. I see no other reason to sell except to hire an attorney. And, get your secured deposit back and ditch the credit card. That $$$ should go into a fund for an attorney as well.

Time is your biggest issue right now. You need time to get ahead of yourself at GA. You need time to get over some of the hurdles of filing. You need to plan for post-BK and what will, can, and might pop up afterwards, and get all of your bases covered. Speaking w/ an attorney can help you get that timeline together so you can set some limits and goals for action.

[keepsmiling]

Have you checked the garnishment laws in your state? Who is the creditor?
My understanding is that cc co's can't garnish in PA.

http://www.gregartim.com/garnishment.htm

Good for your for admitting your problem; that, as you know, is the first step. I wonder if hypnosis works on these kinds of compulsions?
Best of luck in your GA journey. I'd find a meeting TODAY.

[allalone22]

All22, I would recommend that you speak to a BK attorney ASAP, if for no other reason than to get a timetable together. They may be able to help with a garnishment, but the best and most sure way is to BK it out.

Set some goals and deadlines for making progress on this. You will need to have the attorney see dates and amounts where you won, lost, spent, and gave away any significant amounts of money over $300 or so in the last year. Ballpark figures and dates will probably be OK. The one year lookback on payments is a significant hurdle, but that is generally only for "preferred" payments to insiders, etc. Payments to unsecured creditors do not matter after 6 months.

The tax issue should also get resolved, with a final outcome of your refund (find out where it went). If it comes to you, that is income and may play a part in your timeline. In the meantime, adjust your withholding so you do not expect a refund next year. That might help squeeze a few extra dollars per paycheck and will definitely help in your filing.

The majority or all of your stuff should fit under exemptions. If you do sell anything (to pay the BK attorney), keep track of the sale and the payment. I see no other reason to sell except to hire an attorney. And, get your secured deposit back and ditch the credit card. That $$$ should go into a fund for an attorney as well.

Time is your biggest issue right now. You need time to get ahead of yourself at GA. You need time to get over some of the hurdles of filing. You need to plan for post-BK and what will, can, and might pop up afterwards, and get all of your bases covered. Speaking w/ an attorney can help you get that timeline together so you can set some limits and goals for action.

thanks, you have been a great help! I did speak with an atty after I posted. I gave him the information on my winnings/losses/etc and he said time would be my biggest hurdle. He stated he would like to put at least a year, if not 1.5 years in between now and filing for BK. He did state he could fit all my "assets" under exemptions, so not to sell anything.

His suggestion is that I take my tax refund (if I get it) and give it to him. He will then try to negotiate a settlement on my garnishment. If that doesn't work, we can roll the dice with BK, but he seemed discouraged with that process because he doesn't want me to owe the trustee money if they reject my BK. He said that I should try to get to 50% of my garnishment (4k) before we try to settle. That will give us time in case we have to file BK

Not that it matters, but a majority of my losses came in just a few night, not over time. I was just out of my element, thought I was a baller, had a few girls on my arm, gambling away and buying drinks.


*Keepsmiling*

The garnishment is not for credit cards. It is for a repo'd car I had back in 2002 while I was in school. This garnishment is in Ohio.
Although, from what I read, they are only able to assess a max interest of 12% on garnishments and mine is sitting at 22%.
I also went through all my records and my original judgement was for 3938.xx and when they started garnishing it, it had rose to 13,XXX.

So far I have paid 5k on that through weekly garnishments of my job

[SMinGA2]

My 2 cents worth... Settling the judgment/garnishment won't fix your financial woes. So putting $ into paying that debt seems unwise if you ask me. Based on your income level and debt, ch. 7 would resolve your debts. (Assuming you have the gambling problem under control.) Check around for different attorney opinions. If asked, just be honest with the trustee regarding the gambling loss. You are not the first, and won't be the last, to file ch. 7 with a gambling addiction. Filing sooner rather than later means you would be closer to having your life back on track. And stopping the garnishment.

It should be a 'no brainer' ch. 7 case. Your expenses exceed your income. Remember expenses include things like groceries, medical care, clothing, gas, insurance, etc. etc. etc. You may be eating ramen noodles 3 meals a day now to keep expenses low, but you're not expected to do that forever.

For the student loans, are they eligible for the Income Based Repayment plan? Look up IBR. If so, you're looking at about $95/mo in student loan payments. Since bankruptcy will not resolve the loans, this might be worth looking into.

[AngelinaCat]

Hi allalone22:

Welcome to the Forum! You have already received some great advice; I don't know what I could add right now, except to assure that you are NOT alone.

[shark66]

Wage garnishment for a judgement. Original debt =3700. Paid so far 4700, debt left.

I don't get it.

PA doesn't allow wage garnishment to satisfy a judgment...

What info are we missing here?

Good luck to us all.