I don't know what to do....

[Rozi]

I am so embarrassed that I have returned to this page asking for advice and help... My chapter 7 bankruptcy was completed in 2012. I brought a condo, a car and opened up credit cards. I was doing great! Then I feel into a deep depression last year and stopped paying for everything. No all of my accounts are charged off except Victoria Secret and Kohl's. I can afford those payments and my house and car payments but everything else I can't afford. I am even in debt to some payday loan companies. I thought about killing myself but I don't want my family to have to deal with my bills. What should I do? I thought about filing Chapter 13 but I don't want to give up my tax refund and my two open cards. I feel kind of helpless... Any advice? I am so ashamed of myself...How can I ever come back from this??

[LadyInTheRed]

First of all, please do not kill yourself! It is only money and is not worth dying for. Your family would be devastated beyond any debt you leave behind. If you are seriously considering suicide, please get help. Are you being treated for your depression? Please take care of yourself.

Second, look at this statement:

"I thought about filing Chap 13, but I don't want to give up ...my two open cards"

You got a Chap 7 discharge and then got yourself into trouble again. Don't be embarrassed. But learn from your mistakes and stop relying on credit! Whether you file another BK or not, tear up those cards!!!! I bet what you are buying at Victoria Secret and Kohl's are mostly wants and not needs. Create a budget and start living within your means. Stop using payday loans! If they are taking payments from your checking or savings account, close the account and open a new one at a different bank.

In a Chap 13, you would not have to give up your tax refund or any assets, as long as your plan pays at least the value of your non-exempt assets to unsecured creditors during the plan.

It doesn't sound like you have any creditors coming after you at this point. If you can hold out until 8 years after the filing date of your first Chap 7, you can file another Chap 7. I suggest you work on living within your budget and start paying off Victoria's Secret and Kohl's and saving some money. Those charged off debts will probably be sold. If and when you start hearing from your new creditors, one option may be to try to settle if you have cash set aside to do that. If you don't settle and the creditors sue you, then you can file Chap 13 if you aren't yet eligible for Chap 7.

[Rozi]

Thank you so much for your kind words Lady! I remember you were so helpful in the past! I am doing much better now but I regret messing up my credit again. I feel like a loser... I just want to try to pay everyone back this time. The payday loan people are restless but payday loans are illegal in our state so I might be able to get them off my back. I just hope I can come out of this alive.

[Greys0n]

I share your feelings. I am completely in debts too. I take a loan in payday services very often. But prefer this one [link removed by moderator] ( I am from Nevada by the way). Sometimes a loan can be a lifesaver in urgent situations.

[LadyInTheRed]

Rozi, if payday loans are illegal in your state, then they shouldn't be able to get a judgement against you. All they can do is huff and puff. I would stop paying them and use my money to pay living expenses.

Payday loans put you in a terrible cycle of spending your paycheck before you recieve it and then receiving less of each paycheck because of extremely high fees and interest rates. It's better to default on credit cards, pay utilities late or eat ramen for a while.

[LadyInTheRed]

Here is some information that will give you information to determine whether your loand are legal and what to do if they are not. http://www.consumer.ga.gov/consumer-topics/payday-loans

[bcohen]

Legal or not, payday loans and car title loans are the biggest scams on Earth, which prey upon poor people. If your payday loans are unsecured (i.e. you did not pledge your car title for them) then I suggest you quit paying, close the bank account(s) which were disclosed to any payday lender, and open new bank accounts at a completely unrelated bank. The payday lenders will huff and puff and call you and send dunning letters, but are unlikely to file a lawsuit or attempt to enforce their debts.

[Greys0n]

i don't think that payday loans are scams

[LadyInTheRed]

i don't think that payday loans are scams

Scam may not be the most techinically accurate term (at leastn not for all of them), but they prey on upon the poor and are no way to handle financial problems.

Please do not post advertising in your signature or posts.

[bcohen]

i don't think that payday loans are scams

Why's that? Do you work for a payday lender or title loan place? Only someone who has a hand in the business would say something as utterly stupid as that. Any loan which costs 500% to 1000% of the initial principal to pay off is surely a scam, or do you routinely pay such absurd costs when you need to borrow money?