Mental Illness, Out of Control CC Debt & Bankruptcy

[NAL123]

I am Bipolar with Anxiety and likely have ADHD (although I can't find a doctor to make a diagnosis and prescribe correct meds).

In the last year or two, my manic episodes have likely been worse been ever and exacerbated by taking a high dose of Prozac -- 60MG a day which worsens manic behavior. I was paying $150 per session to a psyc doc who continuously ruled out Bipolar & ADHD and only wanted me to take increased doses of Prozac for some diagnosis of Anxiety NOS.

Now I am at my lowest point -- over $70,000 (yes, $70,000 in credit card debt). Fighting to make minimum payments and every day until recently has been a battle to fight the urge impulse spending. Now, finally I am on the correct combo of meds. Sure, it has robbed my of any personality and I have not one friend of any size, shape or form but it has stabilized me and my out of control spending.

Also, holding onto my job by a thread. Not if I am going to be fired but 'When' I have a horrible relationship with my supervisors & the management & structure at my company is just jaw dropping nutty.

No, I am not trying to get out of credit card debt but I know from past experience, my current mental state as well as my very rocky job history that it could be a long while before I am working again if and when I am fired.
Everyone can talk about how good the job market it, but the fact is that companys want that perfect candidate who is the exact match with perfect interview skills. I would even take a $10hr retail job if I had to but in my part of the country (NYC), I probably would be considered overqualified since their are always hundreds of people filling out applications.

Assuming I get unemployment (which is a very big 'if' since my company will likely challenge it), I have about three months of savings to make credit card payments, pay rent, and buy basic necessities.

The only other money I have is in a 401K which I may have to liquidate to pay bills and survive since I don't know when I will be working again from the time I lose my job.

So will I be able to do a chapter 13 at some point?? I know that the look back period is six months and right now it probably would be outright dismissed. If I can prove that I have barely any money to live on other than rent and necessities, what are my chances??

[CATCHMEIFYOUCAN]

Gosh, if I were in your shoes ! STOP paying those credit cards and file for BK with the money you are throwing away to keep up those minimums! As they say in here don't throw good money after bad ! So you up with your payments , so was I. Borrowing from Peter to keep up with Paul and Mary. Eventually there was not light at the end of the tunnel, but Bk showed me the way ! Now I'm absorbing the LIGHT ! ! !

401k is going to hit you hard at the end of the year/term whatever when it comes to tax time ! Not only do you pay penalties for withdrawing it, but even extra come tax time. For example, when I quit one job UNFORTUNATELY I was still paying a $12,000 dollar loan (I had paid down $4000 of it so I owed $8000) but them darn people reported the whole $12,000 in default. I had about $13,000 extra besides the $12,000 debt. I wanted to withdraw the $13,000 but when tallied up the score at the end. I was only going to get $2000 back. They said I was better off rolling eveything over. HECK rolling over $13,000 made more sense than getting only $2000 back had I taken the withdrawal. YOU DO THE MATH.
Sure they look back 6 months. But depending on when you file. If you file with no income/job than I don't see how you can stay in Ch13. For another example, I was working 2 full time jobs which threw me into a Ch13. 3 months into the plan I quit one job. I was immediately able to convert Ch7, I didn't have to wait to re-prove my lack of income. It was pretty obvious my income dropped half. Why should they make me wait 6 months more to prove it? That is 6 months dragging out the inevitable that there is definitely no way I could keep up on a 13 plan, you know. So lets say you still have your job by the time you decide to file and they throw you into a 13 plan. Lets say you lost your job after the fact. Well than you amend you plan and convert to a 7 ! OBVIOUSLY you lost your income to be able to repay the plan in the 13, thats a hardship (job loss) you'll be able to convert to ch7. I know I know its sounds so easy, and I had I listened to my lawyer in the beginning my Bk wouldn't have dragged out so long, but I only wanted to show that I was trying to be "honest," and willing to pay back the creditors (NOT!) it was all for show. No more do I ever want to put myself in debt again!

Best Wishes, CMIYC

[almostthere]

Have you tried other specialists? If you feel you are not presently getting adequate care, I would look around. How about consulting a psychologist and if necessary, have the psychologist refer you to a M.D? Some psychology departments in universities with counseling psychology programs have clinics that can help you for very reasonable fees. Don't give up! Hang in there!

Sorry to be nosey...I have some experience in this area and I sincerely hope that someone who really understands will be able to help you

[SinkingFast]

Hopefully, your new doctor has you on a workable treatment plan to help with your medical issues. That's absolutely the most important thing here. Your health.

From the way you're talking,............... I don't know if your current income is such that you'd qualify for a Ch 13??

Here's the Median Income numbers for NY.

$42,896 $51,994 $62,815 $74,501

That's 1 person, a 2 person family, 3 person family, and 4 person family. If you have more than 4 people in your family, add $6300/person for each additional family member.

In order to file a Ch 13, you have to have sufficient income to fund your Plan payments. If the Trustee does not believe you can pay the Plan payments, your Ch 13 will not be Confirmed.

Do you have some asset you need to protect?? Is that why you're asking about Ch 13??

If you need the money to live on, quit paying your CC payments. Take care of basic living expenses first. If you do have a little money, that may buy you a few extra months of necessities instead of throwing the money away making CC payments.

DO NOT liquidate your 401K. You'll have huge tax penalties if you take those funds out now. Those funds are Exempt in BK. Plus you'll need the money when you retire.

[SamanthaJones]

All of us are either depressed, bipolar, or anxiety-ridden.

The world has gone out of its mind- there is no way to cope. Anyone that would deny being anxious, etc. is medicated, is all. Do not take money out of your retirement. Wait as long as you have to file file to drop your income to a CH7 level, if you have to- you will not be arrested if you stop paying your bills. The economy is on the verge of a major recession, if ever there were a time for everyone to contemplate their finacial situation- it is NOW.

[Spartan]

I am Bipolar with Anxiety and likely have ADHD (although I can't find a doctor to make a diagnosis and prescribe correct meds).

In the last year or two, my manic episodes have likely been worse been ever and exacerbated by taking a high dose of Prozac -- 60MG a day which worsens manic behavior. I was paying $150 per session to a psyc doc who continuously ruled out Bipolar & ADHD and only wanted me to take increased doses of Prozac for some diagnosis of Anxiety NOS.

Now I am at my lowest point -- over $70,000 (yes, $70,000 in credit card debt). Fighting to make minimum payments and every day until recently has been a battle to fight the urge impulse spending. Now, finally I am on the correct combo of meds. Sure, it has robbed my of any personality and I have not one friend of any size, shape or form but it has stabilized me and my out of control spending.

Also, holding onto my job by a thread. Not if I am going to be fired but 'When' I have a horrible relationship with my supervisors & the management & structure at my company is just jaw dropping nutty.

No, I am not trying to get out of credit card debt but I know from past experience, my current mental state as well as my very rocky job history that it could be a long while before I am working again if and when I am fired.
Everyone can talk about how good the job market it, but the fact is that companys want that perfect candidate who is the exact match with perfect interview skills. I would even take a $10hr retail job if I had to but in my part of the country (NYC), I probably would be considered overqualified since their are always hundreds of people filling out applications.

Assuming I get unemployment (which is a very big 'if' since my company will likely challenge it), I have about three months of savings to make credit card payments, pay rent, and buy basic necessities.

The only other money I have is in a 401K which I may have to liquidate to pay bills and survive since I don't know when I will be working again from the time I lose my job.

So will I be able to do a chapter 13 at some point?? I know that the look back period is six months and right now it probably would be outright dismissed. If I can prove that I have barely any money to live on other than rent and necessities, what are my chances??

With all due respect, you are carrying too much on your shoulders. I think you are entitled to government assistance. I would suggest contacting Social Security office, and/or your State Attorney General's office. Someone there may be able to point you the right department where they can assist you with managing your financial affairs as well you health care need.

You don't have to go it alone. Best of luck to you. Take care.

[bige1030]

I'm very sorry to hear about your problems. I've had experience with mental illness and I would never wish it on anyone, even my worst enemies. I hope that you're able to continue to take care of yourself - making sure of that should definitely be your first priority, especially if you're going to lose your job.

I don't know what your income is like, but you might be able to qualify for a straight-up Chapter 7 discharge - just one filing, a 341 meeting, and if there are no issues in your case (like recent credit card charges), you'll be discharged of your debt in a few months. That'll be a huge burden off your back and will help you get a fresh start on life free of oppressive credit card debt.

[ilovemycaitybug]

I disagree that the entire world is depressed, anxiety-ridden, etc. True, we all have stress and anxiety to some degree, but the type of illness NAL (and many other people) have is far beyond that. I, too, have had serious issues with social anxiety disorder, generalized anxiety disorder, obsessive-compulsive disorder, and slight bipolar depression. I have been on treatment after treatment... and can understand your plight. My illness was a major part of what caused our financial problems now.

I agree with CMIYC and SinkingFast... take care of yourself and if you can pass the means test by all means I would suggest Ch.7 b/k. That type of financial burden on top of everything else does not help matters any. But make sure that you have the support you need to keep from getting into CC debt again. We are entitled to a fresh start, and good health. Take care of both. Best of luck to you!!!