Need Advice

[nioka]

I have been retired for ten years. When I retired I thought I would be fine. I retired with SS, a small pension, and medical insurance. Five years later the company I worked for cancelled our health insurance leaving me to foot the bill for gap insurance. I had a few medical issues and ongoing medical problems with high co-pays.

Long story short I have run out of money. Over the past few years I have tried to pay off CC debt but instead have been force to increase that debt.

Now my HOA has increased rates higher than I can afford. I bought a house a few years ago but with the downturn in RE that house has no value. I drive an 8 year old car I own. I have no other property or possessions of value.

Sorry to say, but I am ready to throw in the towel and file for bankruptcy. I reside in Tennessee. I have no idea how to proceed and would appreciate any advice or suggestions.

I should also add that I live in a remote area where a car is required. My medical situation may restrict my driving in the future I need to move to a more developed area where I can have access to public transportation.

Thanks

[AngelinaCat]

Hi Nioka: Welcome to the Forum!

I broke your post into paragraphs to make it easier to read.

You need to tell us a bit more about yourself. What is your income? Do you have a mortgage? If Do you so, what are the payments? Do you have any family or dependents? Where in Tennessee are you? If you have medical issues, how is your health today? How old are you?

That will do for a start. Thanks!

[nioka]

AngelinaCat

Thanks for you reply.

I am 70 and located in central TN, Cumberland County.

My income is SS and pension, $29,900.

Mortgage payment is $700 with little to no equity. CC debt is about $22,000.

I have some medical issues. The most pressing one now is cataracts. I am in an area of TN without public transportation and I am alone.

I have too many aliments to consider working a job.

[tobee43]

nioka welcome to the forum!

i can't believe your company dropping your insurance. really it should be against the law, but so many companies have don that to their retirees . you have medicare now. i know that only covers approx 80%, but you should see about speaking to someone at SS or at the medical facility that can help you with any remaining balances after the medical situations are under control. there is help out there. you don't mention your pension amount, but if you can see about getting a supplement for the medicare??? your doctor should be able to help you find someone that will work with you on the cataracts.

you have assets as you have a house, does it have equity in it? best of luck and keep us posted!

[keepmine]

Here's what I'd suggest.
Stop paying those credit cards and your mortgage and the HOA fees.
Use that money for normal HH expenses. Also, get a good medicare supplemental policy.Be certain your transportation needs are taken care of. If you need to nuy a new car and your credit is OK then now is the time.
Then, just wait. Your ss and pension income are exempt from garnishment and bank levy.
Depending on the foreclosure process in your state, you may live in that house for a year or more before you have to leave. Use this time for your eye surgery and finding a place to live.

[nioka]

Thanks for the advice.

I was amazed that a company earning billions annually would go to court to end their retirees medical benefits. They also tried to shut down the pension but the court would not allow that. I had a heart attack and even with Medicare my copays and other costs ran in the thousands. I was also told no more steps so I had to move to a single floor unit. The complex I was renting from refused to end my lease and I had to pay nearly $4000 to end that lease. Sorry I don't mean to cry on anyone's shoulder. I am just trying to point out that even though a person thinks they got retirement covered they do not know what they are in for.

I am meeting with a bankruptcy attorney on Monday.

I bought this house with "0" down. I have paid $4000 in principal. However the local RE market has been declining by 4% annually. I am in an upside down mortgage.

I read a few posts in the internet that urged finding a place to live before creditors had a chance to report it to the credit agencies.
Right now I still have good credit. Does anyone know how long it takes from stopping payments to when the credit agencies post the bad credit?

[Pjmax]

Don't worry about crying on anyone's shoulders. We do a lot of that here.

I don't know about the mortgage, but your credit cards will start reporting lates, after the first missed payment. Depending on when your statement date, and the date they usually report, that can happen pretty fast.

It's a good idea to make appointments with several attorneys before selecting one. Initial BK consults are usually free, but ask to be sure.

Welcome to the forum. You'll get lots of good help here, and there are lots of shoulders, if you need to cry, lean or just vent.

[nioka]

Pjmax

Thanks. That tells me that I must be in secure lease before the SHTF.

I also read that once an BK lawyer is contacted it is best to curb or stop the use of CC's.

I hate to say this but I am thinking about delaying my initial visit until after the holidays. I do have a few grandchildren, but I will buy only a few modest gifts for family this year. My big concern is that I had planned to replace my well-worn dentures using a CC. I probably have about $1500 left in available credit and new dentures would take a big chunk of that. I am not sure how that would look three months from now at a BK hearing.

What I find most troubling is that all my life I have worked to pay my bills on time. Sometimes I had to do without to pay those bills. Now things are reversed and I am doing what seems to be the exact opposite.

After reading all the good advice here at BK I have a tentative plan.

I plan an initial visit with an attorney in January. Afterwards I will stop using my CC's. I will continue to pay the minimum on my CC's until I can get enough money together to lease an apartment and get my utilities established. Once I establish my new residence I will then stop paying all bills except those related to my new residence and initiate my BK.
One thing I could not find any info on was what to do with a house with a mortgage. My current house is 100% in the hole. I thought putting it up for sale would be the best thing to do. However, going into winter where I am at, no one will even look at it. I thought that might look good to a judge.

Your thoughts and suggest greatly appreciated, thanks.

[Pjmax]

Do not use a credit card for at least 3 months before you file, 6 months is better. It would appear that you used a card with no intention to pay, and could result in an AP. The creditor could file an objection to discharging the debt. Generally, people advise against paying CC's once you know you are going to file, because it's basically throwing money away. Contacting a lawyer doesn't have much to do with that. Some folks pay minimums until the last minute to avoid creditor calls, and believing it may help credit score after discharge. That last part is only a little true, but not worth it for those who really need the cash to live on.

There's nothing wrong with starting your attorney interviews now. You are not obligated until you sign the retainer. If you won't be filing for a few months, you can take your time and see a few lawyers without the pressure to 'rush' the choice. And, you can ask some important questions and get valuable advice on planning for your BK. Hopefully, by the time you are ready to file, you will know who to go with.

I'll leave it to others to advise on your mortgage and housing, since that wasn't an issue for me.

[nioka]

Pjmax

Thank you so much for you help.

When I relocate I will be moving from one country to another county about 150 miles away. Where should I file for BK? The county I now reside in with the mortgaged house or wait until I get moved and file in the new county? After I get moved I am sure I the mortgaged house will still be for sale.

[keepmine]

You will file in the fedral court district in which you reside. That may or may not be in the same county.

Honestly, I'd stop paying/using those credit cards and the mortgage right now and use the money you're saving for living expenses, Christmas presents and the dental work. I'd be in no rush to file bk at all. After all, your sources of income are exempt from creditor seizure.
Your bk trustee won't care one way or the other if you tried to sell your house prior to filing. If it won't bring enough to cover the mortgage, let it become the lenders problem.

I assume Cumberland County is in the E.D. of Tn. If your new residence is in this district, you'll file in of the locations listed on the court website.

http://www.tneb.uscourts.gov/

[nioka]

Keepmine

Thank you so much. You folks here are the most helpful of any forum I know of.

Thanks for the court locations. When I get moved I would be in another court district, Greenville.

Monday I meet with an attorney for a consul.

I was hoping to get enough money together for an apartment and get moved before my credit gets slammed. I have read of people who had a horrible time trying to find an apartment after bankruptcy. I don't want to end up in the street.

If I pay the minimums and basics in December I should have enough money for an apartment in January when I would stop all CC and mortgage payments. I would have plenty of money for an apartment and movers.

There is no equity in the house at all. I would have to sell for full market price just to break even and I don't think that is possible.

After I thought about your post I realized I missed what you wrote about not being in a rush to file. I guess the best strategy would be to stop paying my bills, move, and let my bills catch up with me. Then file for BK. Is that the idea?

Sorry if I seem a little hesitant. I have been doing the exact opposite all my life.

[Drazil65]

Hi, if you are just at the point of stopping your mortgage payments then you do not need to rush to move. Stop the payments (and the CCs) and start saving the money each month. You have some time before you have to move and by then you will have enough money.

We had no issues with getting a place, we only looked at privately owned places and not the big property management companies. Individual landlords seem to be less likely to run credit reports and if they do then you can approach them and let them know what is going on. Bankruptcy is much more common than most people think with the way things have been in the economy these past few years. You would be surprised exactly who you know that has been there done that.

Take a step back and start reading the stickies here at the top of these forums, time for you to do some preplanning for the bankruptcy in steps. You have time use it to your advantage and prepare. Good Luck!

[nioka]

Drazil65

I think I read every stickie everywhere. I am amazed at the amount of information here at BK. Thanks for your post.

Today I meet with the first attorney. (I'll post later today). I filled out all the paperwork and after adding up my income and expenses I find I am running $9 in the hole every month on a normal budget. It is easy to see after my bank account was drained I could never catch up. Every time something happens that is not budgeted is how I keep going deeper into debt.

I am wondering what do people do with the money they have by not paying bills. From what I read a bankruptcy candidate can only have a limited amount of money in the bank.

BTW, I talked to several people I worked with prior to retirement. We were all given a retirement package, (not worth much), and shown the door at he same time. We all thought we would be OK because we retired from a fortune 500 company. The only ones who are not in financial trouble are those who were able to go back to work. One guy who is almost 80 is working for Wmart. The rest of us either can't work or can't find work. A few filed for BK. Most are like me and don't want to give up the ship.
If you are considering retirement I feel confident in saying no matter how much you think you have, (millionaires excluded), you probably don't. Company retirement benefits can end at any time. If you think you got medical costs cover you most likely do not. (You cannot imagine how our good doctors and medical providers get around insurance). Don't trust the governments cost of living calculations. They lie.
One odd thing is that although I planned for my retirement in my 50's later I realized that I was happy doing what I was. I like the area I lived in and the people I worked with. By the time I hit 60 I decided to just stay working until I past away. My company had a different idea.

[Pjmax]

Hi Nioka, I'm kind in the same boat as you, only without a retirement pkg. I thought I'd be working until the bitter end. I loved what I did, and couldn't imagine not working. I was first layed-off in 2009 for a year, called back for 10 months, then just every now and then for a few days at a time. So, I've been un or under employed since 2009. Unemployment actually went about 6 months beyond what I expected, but I filed for Soc. Sec. in 2011 at age 62. I filed BK 8/2012. The job market here is dismal, retail, food service and medical only. Not that there is anything wrong with those jobs, they are just not for me. I've done my share of min. wage jobs throughout my life, and although they got me through some rough spots, I'm just too old and cranky to deal with them, and it barely pays for the gas to get there.

I recently started a new job, it's kind of like being self-employed, but with a direct dep. paycheck every week. I set my own schedule, make my own appointments and I can do the paperwork in front of the TV in my jammies if I want to. I'm paid by the hour, so the pay varies, but I've been struggling on bi-weekly and now monthly income for so long, this extra money every week is a treat. I'm kind of liking it and it's getting me out of the house - I was really becoming a recluse.

So, it might take awhile, but I'm hoping when you get your financial and living situations straightened out, you find something you are interested in doing. It has taken me 4 years.

I'll be looking for your atty. appt. recap. later.