Making the Bankruptcy Decision

[Optimistic09]

Receiving notice that our cc interest rates are increasing again was our wake up call that trying to keep up and get out of debt is not working.

In the last week I have learning more about bankruptcy than I ever imagined. I have searched all over the web and this forum has been a very educational and I might say soothing resource. We are looking at Chapter 7.

In retrospect I wish we had explored bankruptcy sooner so we could have planned better. We have not done anything official yet like talking with an attorney but it looks like we will.

We have managed to make payments but from what I have been reading is to stop paying all cc bills if they will be included in the bankruptcy. We are current on our home but have a real estate tax bill due next month. It really is pay the cc or pay the real estate taxes.

Somewhere I read that we should make at least one payment if we had a charge on that card the previous month. If we do that we will be short with the real estate taxes. May will be the first month that won't have any charges on our charge cards.

Thanks for all of your stories and successes.

[keepmine]

If you plan to keep the home, real estate taxes are a priority. Pay those and let the cc's go.

[MichiganMan]

agree

pay the taxes

[LuciluS]

Pay The Taxes!

Stop paying ALL Credit Cards! You can plan your Bankruptcy.

We stopped paying the majority of our CCs' at the end of Sept. 08. Retained and paid the Attorney in Full. Due to extra income and it dropped off in Feb., we will be using our Gross Income from March - August and filing on 9/30/09 as we live in a small town and our Attorney does all Bankruptcies the last business day of each month.

Yes, the phone calls started immediately. I calmly gave them our Attorney's name, address and phone number. I must say all of them were very nice. Some tried to get extra info, but I would just repeat my Attorney's name, address and phone #.

They stopped up until the middle of March. I took a few phone calls and told them we would be filing sometime this year as I was diagnosed with skin cancer (not a lie). Now, Attorney told me don't answer the phone.

I have received two collection notices and Attorney said no big deal. If I get something certified he said fax it to him or drop it off to his office and he will file something to delay it until we get our Bankruptcy filed.

I am using 'I' as I'm home all day long. Hubby and I are filing jointly.

Luci

[Optimistic09]

Thanks everyone.

We are current on our credit cards but have a couple that will be due in a few days. We won't have an attorney immediately so I am not looking forward to the phone calls when I don't pay the bills.

That really was a light bulb moment when we received notice of the interest rates going up. It pushed me and caused a literal switch in my thinking. We had no late payments and it just made me realize that we have to do what is in our best interest. My husband is getting his head out of the sand about our debt so we are working together on this.

Today I am going to send in a Bankruptcy Questionaire to an attorney and keep reading and learning as much as I can about how to plan for the bankruptcy.

[BK09]

I will tell you this forum has a lot of great info. I was in the same boat as you in December 08. Rates were going up and I was barely able to keep up. Finally decided to bite the bullet and stop using all credit cards and stop paying unsecured debts and ensuring all secured debts were current and paid.

Stopped paying unsecured in December 2008 and stopped using CCs. After numerous calls from creditors, even a couple at work, we filed Chapter 13 in early April 2008. Calls were not that bad, they were just relentless. Stressful and very defeating decision to make, but better to bite the bullet now than to prolong the inevitable. I always said I would never file, I would pay off my debts, but the credit card companies are making this almost impossible. For what its worth, we feel we made the right decision, living on cash no credit feels so much better and there is no guilt.

Good luck with your decision and I feel like I have added years to my life by cutting the stress of worrying if I can make ends meet each month. Now it is tough but I know that this financial disaster will be paid off in 60 months and I can move on with life with discipline, communication with my wife, and faith.