Trying to save ourselves.

[Calamity]

First off, I am glad I found this website. Already I feel more informed and knowledge is power (as they say).

My husband and I are low income and have been quite proud of what we have been able to accomplish on as little income as we have. A few years ago, as the economy started to tank in Michigan, things got very tight. With the rising gas prices, we found it extremely difficult to even heat our home in the winter. Our jobs made major cuts/layoffs and the people remaining had to make pay and benefit concessions to keep the company healthy. We found ourselves running short at the end of the month. Suddenly we had to charge things like house payments, heat and electric. I lost my job last July. Michigan has the highest unemployed rates in the country. There are no jobs. I started an in-home daycare just to attempt to keep money coming in on my end. Everything snowballed out of control, and now we are in a position of owing a lot more a month than we make; which actually may be quite a bit less than most here, but at our income it's crippling.

We have spoken to debt consultant and a bankruptcy attorney and we are filing for chapter 7 (my husband is with the attorney as we speak getting the ball rolling). I am really scared, disappointed and humbled.

I am hoping this will be the new beginning we so desperately need.

[LuciluS]

Hubby and I tried the Debt Counseling first. They told us they couldn't help us last Sept. and told us to see a Bankruptcy Attorney. At that time, I didn't know the difference between a Chapter 7,11, 13 or 20 Bankruptcy.

We stopped paying most of our Credit Cards late last Sept. We need to let some monies drop off from Feb. 09, so we will be filing 9/30/09 using Mar-Aug income.

Yes, at first, I didn't sleep, cried all the time, Yada, Yada. Hubby found this forum and I've read, read and read and used the Search button and asked some questions. If it wasn't for this Forum, we would most likely have filed & be in a Chapter 13 bankruptcy.

As several posters have said & I use this phrase when I get down 'Filing Bankruptcy Is a Business Decision' and you try to leave the 'Emotional Side Out of It'. That part comes when deciding whether to keep your home or vehicles and using your Exemptions wisely.

Good Luck!

Luci

[DeadManCrawling]

Glad you found your way here.

No need to be consumed by the negative emotions. We have all been there to one extent or another and certainly understand, so feel free to share if it will comfort you.

The process is a little daunting until you understand it thoroughly, which you should make every effort to do even though you have an attorney.

Understanding will bring you confidence and that is something we all need these days.

Just as important as realizing you need to file is having a plan for AFTER it is done, so you can avoid the same pitfalls that brought you here. Good budgeting and planning are key. Also, looking realistically at your expenses and choices as you you go forward will be valuable.

There are low-income assistance programs for heating oil in most states. Maybe all. I hope you are aware of them and will look into them. My parents utilize a plan in the midwest for help with their winter heating bill. You certainly do not want to risk injury because of a lack of heat.

Filing BK is a business decision, nothing more, nothing less. I don't believe I have heard anyone at Chrysler expressing regret or humiliation over their filing. The stigma attached to personal bankruptcy is ridiculous, and still exists, though it seems less prevalent than in the past. In any case, it is a chance to start over, it is legal, and it can add years to your life.

Good luck in all you are working on!

[kenshirley]

The laws of our land are there to help you if that is what you need.
There is always some regrets and bad feelings about this type of thing but there is nothing to be embarrassed about.
Good advice is paramount in this procedure and finding that (and an attorney that is competent) can be as frustrating as finding a good doctor nowadays.
That being said, once you get some information the actual processes and mechanics of doing this are quite simple.
Take a deep breath and hang in there.
I understand that General Motors is filing Monday. You are not alone.

[freefall]

Just look at the list of members in this group. Everyone is filing bankruptcy these days, and if they aren't now, they will be. Oh, I know, the recession is supposed to end in six weeks. We're headed for a great depression. That is, unless you think Obama can really keep printing trillions year after year to keep everything floating. The 90's and the first half of 2000s were the roaring twenties. Now we're back in the thirtys. No one is going to sit around with 70,000 in debt anymore. What we really need to watch is that they don't try to stop bankruptcies. This may be an ideal time to be going bankrupt.

[moneytrouble]

After GM files Monday, this place is toast. Just drive around the suburbs of Detroit. In my 2 mile wide, 2 mile long zip code, there are 255 homes for sale. Yes many are condos, but still. Thousands of stores are homes are empty. File bankruptcy now in Michigan, if you are way behind on payments. You will not feel alone at all! There were about 100 people at my 341 meeting, and that was just in the morning. There is no industry left in Michigan come Monday. A perfect term for Detroit: "Shock and Awe".
I too was one of the people who had perfect credit my whole life, until my pay cut, and it was all over for me then even with a second job. I am just too old to leave this state and go elsewhere. I am a homer, and this is utterly depressing.

[kenshirley]

Yes it's sad what has happened to so many.
We feel fortunate that we are retired and so far our income with support us if the $ does not lose value.
But we lost our RV and our home and are in a rental.
Many are in far worse shape and we feel for them.
I really don't believe that this mess is over yet.
You said there were some 100 people at the 341 meeting in the morning session. There were many here for ours too but I asked out attorney and they only meet once a month so far here.
Do you know how often they meet there?

[Calamity]

After GM files Monday, this place is toast. Just drive around the suburbs of Detroit. In my 2 mile wide, 2 mile long zip code, there are 255 homes for sale. Yes many are condos, but still. Thousands of stores are homes are empty. File bankruptcy now in Michigan, if you are way behind on payments. You will not feel alone at all! There were about 100 people at my 341 meeting, and that was just in the morning. There is no industry left in Michigan come Monday. A perfect term for Detroit: "Shock and Awe".
I too was one of the people who had perfect credit my whole life, until my pay cut, and it was all over for me then even with a second job. I am just too old to leave this state and go elsewhere. I am a homer, and this is utterly depressing.

I know exactly what you are saying. This is such a beautiful state and I have always loved it here, but I would move in a heartbeat if I could have a better life someplace else. Unfortunately, money doesn't allow it.

[moneytrouble]

.
Do you know how often they meet there?

This month there are five court days scheduled.

[kenshirley]

This month there are five court days scheduled.

Wow Your area must be in real trouble.
But I also know that your population is much higher that this area.
So the higher number of days required to process these actions is needed.

[Calamity]

What county do you live in may I ask?

I actually quit my job last year, because the daycare was suppose to be a better opportunity for me. I was paying out all my income to gas and a sitter for my son. It was a horrible job to boot. I am doing better with the daycare then I did working, but I even struggle with that because if people in Michigan aren't working, they don't need childcare.

[moneytrouble]

I am in Wayne County. All Metro Detroiter's go to the court in downtown Detroit. At least there are a lot of parking places near the bankruptcy building.

[Mi Bankruptcy]

It looks like Michigan, Florida an California pretty much run this board..LOL.. keep your head up. Your in the right place. Always double check what your attorney says.. Good Luck!