Feeling alone, but not angry...

[newbeginning]

Hi,

Had the worst month that I could have ever imagined. Found out my wife has cancer (in the ICU now) and that our finances are far worse than I ever thought.

My wife was responsible for our finances for the past two years and I recently discovered that she had applied for over 7 credit cards either in her name or mine. I knew that we were having problems, but all of this became a strangely surreal surprise to me. Always a 2-income home, there is no way to keep up with all of our bills and credit cards (and pending medical bills)!

I have tried to contact creditors and come up with some relief or payment plan, but even with that, there is no way to keep up with payments (which includes a mortgage).

As I see it, it would be fruitless to apply for Chapter 7 or 13 when medical bills are quickly approaching. I am hoping that my wife will be out and I will start seeing the medical bills by March or April. Like I said, I doubt that I will be able to keep up with the payments and need to know what the best course of action may be.

1. Do my best to pay what I can and try to hold off until I know what my medical bills will be?
2. File now and get relief of CCs at least and deal with medical later on my own?

Need advice.

Thank you.

NEWBEGINNING (hoping for one in Texas...)

[chpxiii]

If you know you have pending medical bills coming up, and considering it will be to help with cancer, I would wait and hold off as much as possible. That way you can put medical bills on your bankruptcy.

[rrockinggramma]

In addition to that, I would not even worry about the credit cards right now. I would concentrate on what is important, your wife's health. I would keep up on your mortgage, your car, your utilities etc and let the rest go for now. Narrow your focus to your wife and the basics. Good luck to you and your wife!

[newbeginning]

I have considered just going ahead and dismissing the credit cards until I file for chapter 7. But, I will contact the CC companies and tell them of my situation anyway. I kind of feel that I can do that at least.

Thank you both for your advice.

[bezoar]

In addition to that, I would not even worry about the credit cards right now. I would concentrate on what is important, your wife's health. I would keep up on your mortgage, your car, your utilities etc and let the rest go for now. Narrow your focus to your wife and the basics. Good luck to you and your wife!

Ditto. If you're in Texas, it's a pretty debtor-friendly state, too. Don't pull the trigger too quickly, with all the unknowns that you have coming. I think I waited over a year in order to plan things out. Good luck!

[krielly]

One important thing to remember is that if you do plan on filing 7 or 13, don't use your credit cards anymore, either. If you plan on filing, and continue to use those cards.....that could consititue fraud, and those charges may not be able to be discharged..............

PS: I'll be praying for your wife........

[newbeginning]

Thank you. I am in the process of closing all accounts.

EDIT: As far as I can tell, all accounts are CLOSED.

[newbeginning]

Hi,

I have additional questions:

1. I made payment arrangements with a couple of my creditors via direct debit using my checking account. Should I stop them? They will prove to be substantial, but manageable. These arrangements were made prior to discovering the full scope of my financial troubles!

2. Regarding #1, would it be better for me to open up a new checking account at another bank and just close the one from #1?

3. Is there ever fear that my creditors may begin garnishment of wages process?

It just seems silly to make payments for a better payment plan only knowing that I will eventually fall behind that as well.

[danaf]

I believe I've read that if you live in Texas, creditors cannot garnish your wages.

If you know you are going to file, then Yes, stop the debit payments and yes, move your money to a different bank, especially if you have credit cards with the bank you have now.

[newbeginning]

Do you recommend CLOSING the bank account after opening a new one with another bank?

Thank you!

[treehugger1]

If it were me, I'd open a new account and then close the older one. It is not a bad idea to ask whatever new bank you are considering if they do a hard pull of your credit report. A hard pull can show up and other creditors or potential collection agencies can see where you might have looked into banks. I'm not trying to set up paranoia, but be a bit proactive if possible.

[newbeginning]

Thanks Treehugger1,

I'm not worried about whether they find me or discover what other bank I've switched to. As long as they cannot get my money, that's all I care about.

[dylancarly]

sorry

Sorry about your dificulties. My thoughts and prayers are with you and your wife. I agree with the other posts. Focus on your basics , house paymt. utilities etc. Dont even sweat the other stuff for now. Take care of your wife and yourself and stay together as a family. The finances will work out for you in the long run.

[FreshLikeADaisy]

Newbeginning, yes, definitely close the accounts and move them to a new bank: once you have given a creditor access to your account, whether by check or debit agreement, once you go past due it's common for them to yank cash out without warning you in advance.

That, and 100% agreed with everything that Rockinggramma and everyone else said: you already know you can't keep it together, you already know you're going to be receiving some whopping medical bills, plus you're in a *very* debtor-friendly state: stop paying the CCs and other unsecured debt, keep your mortgage and utilities current plus whatever secured debt you want to keep through bankruptcy (like a car loan if you want to keep the car) and use the rest to get through your day-to-day, maybe save for an attorney, until you're ready to file.

Bankruptcy is hard, but I think you will find that it turns out to be a huge blessing. Best wishes to you and your wife, and hope for a speedy recovery!

[newbeginning]

HELP. Just discovered that my current bank placed a hold on my account. I opened up another bank account and was preparing to close the other account to which I owe on CC's. I had over $6000 in the account....is there no way to retrieve that money?

This is terrible!

I guess my mistake was not closing the current account before opening a new one elsewhere...