Ask MetaFilter questions tagged with bankruptcy

How to Defend Against a Secured Parties Claim

Muirwylde — Thu, 05 Nov 2009 20:06:30 -0800

[Bankruptcyfilter] YANML...speaking in hypotheticals only. Exempt furniture / wildcard exemption vs security interest of creditor in same said furniture with a UCC Security Agreement. Does the furniture get an exemption? Or does the furniture get Repossesed via Foreclosure of Security Interest in Personal Property? Furniture was just pledged as collateral...never was sold or belonged to the creditor. How is this determined... by the Bankruptcy Trustees discretion, or by law?

How to manage my debt and life as a whole

thegreatcokeolympics — Sat, 19 Sep 2009 12:34:41 -0800

How do I get my life on track with high debt and a chronic medical condition? So i'm 26 years old and have been completely on my own since i was 18. I come from a working class family who lives in a small dying town with no jobs. I knew if I was going to make something of my life in any way, I had to get out of there. Being so young and inexperienced, it's not like I could get a well paying job to support myself. And it's not like my family had any money to give me.
So 5 years ago, I took out many many loans and used that money to move myself across the country to " the big (and expensive) city" to attend college and hopefully start a new life there.

I also used the student loan money to pay for everything I would need to live on (mainly rent because the dorms were more expensive than studio apts, food, and school supplies) and even then it still wasn't enough, so I also worked full time in addition to going to school full time, just to make ends meet.

On top of this, to make matters more complicated, I also have a chronic medical condition. I have had it mildly since I was 10, but never had it addressed, or even diagnosed as to what it was, since my family lacked health insurance.

It was still fairly mild even when I moved here, but through the years got much more serious and I am now in constant daily pain and have some serious breathing issues. I tried to get health insurance on my own, but no plan would cover me due to the pre-existing condition. So I had no choice but to pay out of pocket for all medical expenses. Of course I had no out of pocket money to spare, so I used credit cards to pay all my medical bills.

And I never had enough credit to pay for anything medical that would truly diagnose me, so I resorted to many expensive pain management treatments only to be left with my condition progressively getting worse.

Now flash to present day, 5 years later, and I am $60,000 in debt from school, $10,000 from credit card debt. The job market is scarce and no one is hiring on staff. I've been taking very low pay freelance gigs which don't even amount to half of my expenses.

Currently, my bare minimum expenses amount to $1150 per month.

One of them being a health plan I pay 400 a month for after puting myself on a long waiting list for a government health plan that teams with private insurers to give coverage to high risk people. With this plan I was also able to finally get the tests I needed to diagnose me, only to discover (upon confirmation of 6 different doctor opinions to be sure) that I need a surgery that will cost a minimum of $30,000 depending on where I get it done, while knowing full well my insurance plan will most likely not cover because it is not a common surgery, though results are typically favorable.

I also pay 400 a month to see a physical therapist who I have been seeing for a year and a half and is the only source of pain relief I have found to help me (Insurance only covers 25% of 12 sessions a year, which I have already maxed out) Then pay 300 a month for my credit cards and 50 for my cell phone. And every 3 months, pay 150 forbearance fee for my student loans. That is it.

I had to leave my apartment and move in with a friend who is letting me stay there rent free until I figure something out. They are also fortunate enough to make a decent living and have been loaning me money to help pay my bills, eat their food, and use their computer. If anything, they've almost become my surrogate parent and it makes me feel like shit for puting them in that position, but I simply don't know what else to do.

I would get a second job anywhere I could find, but not only have those jobs even been hard to come by, but my health simply won't allow it at this point. I am extremely distressed, depressed, and hopeless. The biggest issues of all is the health and everything else seems to stem from it to make all the other problems worse. I don't know how much more bare minimum I can get in terms of cutting my budget when I'm already miserable and in so much pain.

I have considered going on disability, but I don't know if I would count since I still have been able to work, so long as the work isn't strenuous and I don't have to be on my feet all day.

I've considered welfare and bankruptcy but I'm not too sure how they work or if I would have to give up making enough money to pay for everything I need just to qualify. Or if bankruptcy will just ruin my credit enough to never be able to rent again.

I want to be responsible and make the best choice that will benefit me in the long run, but I don't know what that is or where to go. I really need some advice or clarity on this, so anything anyone has to say, please I'd love to hear it. Thank you.

Good questions to ask my Bankruptcy Lawyer in the morning?

samuel1613 — Fri, 11 Sep 2009 22:24:42 -0800

Questions to ask the bankruptcy lawyer in the morning to learn about the process AND to evaluate the lawyer's ability in bankruptcy. Sorry for the late question. I am visiting a bankruptcy lawyer in the morning. Without judging my circunstances, can you please give me good questions to ask to determine if this is the lawyer I should choose IF I do go down this path. What should I ask them about? Their experience? Their fees? Timeframes? Options? Please help as I know little about this process, and I would like to know if this is a good lawyer for this process. I already know all advise you provide is not legal advice, most of you are not lawyers, and I will take everything as simply friendly advise. Thank you for your help!

What is the best path...

Muirwylde — Thu, 03 Sep 2009 19:18:32 -0800

Did we receive sound advice? A friend is filing Chapter 7 bankruptcy in the next few days. A creditor is threatening to repossess some items if said person doesn't respond to the written request for a voluntary surrender of the items. A document pledging the items as collateral was signed. A legal advisor gave the following advice... The creditor has given the borrower until September 8, 2009 to respond. If no response is forthcoming, the creditor is threatening IMMEDIATE (September 9, 2009) assignment to a repo company. My question is this. During a legal consultation today, my friend was advised to tell the creditor to expect a bankruptcy filing in the next ten days. This seems counter-intuitive. Wouldn't the creditor speed up their efforts at repossesion in an effort to beat the bankruptcy filing? Was this bad advice and if so why? Was this good advice and if so why? Does it make more sense to remain quiet about the filing until the papers are delivered or does the creditor have to stop making efforts at repossesion the moment they are notified of intent to file bankruptcy documents.

How can I make it go away?

anony-me — Mon, 10 Aug 2009 15:06:21 -0800

Is bankruptcy the only way to put this foreclosure mess behind me? I bought a house near Las Vegas in February of 2005. At the time I was working as a contracted consulting engineer and I could afford the house. It sounds so stupid now, but I really did not understand the housing market bubble, I just wanted a place to live. In July 2005 I was essentially laid off - several clients canceled projects and my contract disappeared.

I was able to find another job but not in Nevada. I moved back to LA and rented the house, but for far less than the note ($1150 of $2400), so I kept paying the rest. After working 9 months in LA, I was laid off again (June 2006). I got married in October 2006. After collecting unemployment and searching for a job in my field, I finally had to give up and take a job at a grocery store. I still continued to pay the mortgage all this time, but in February 2008 I had a baby and have not worked since.

Starting in April 2008 I tried working through a company to negotiate a short sale on the house. I put together tons of financial information demonstrating how my circumstances had changed. The bank never approved any of the short sale offers and finally foreclosed in March 2009. I was not contacted by the bank at all during the process. Now today I get a letter from attorneys retained by the insurance company that offered the PMI on the loan (it was a 30-year fixed 95% down) demanding payment in the amount of $65K.

I am unable to get a job in my field in the LA area. To be honest my field of expertise was kind of narrow and I have made some professional mistakes. I suspect word has gotten around. My 10 year background looks "too exotic" or "overqualified" for a lot of other jobs. I cannot even get a menial job that will break even once childcare and expenses are factored in. I have not contributed to the bottom line of my household since I moved back to LA. I also have $11K in credit card debt (the account has been closed and I have been paying it down as much as possible). I used to make $75-85K a year, I guess I might have been overextended but really it wasn't that crazy when I was working.

But what do I do now? There is no way I can pay this. I don't think my husband should be responsible, since all this happened before we were married. But is he? How long are they going to come ofter me? Would bankruptcy work? If I need a lawyer, how do I get one? What kind do I need? How much does it cost? We have no money.

How do I know if I'm even getting good advice anymore? I feel as though I am loosing my whole life over a few bad decisions and some circumstances that were truly beyond my control. I don't know how to get another chance.

Thank you so much for any information or suggestions you are able to provide.

Photographer's agent cornered in bankruptcy filing!

tangyraspberry — Wed, 15 Jul 2009 09:17:39 -0800

I am an agent representing a group of professional photographers and, among other things, am responsible for billing on their behalf as well as collecting and dispersing the moneys upon receipt. I just received a notice regarding a job that took place 3+ years ago informing me that, because the client filed for bankruptcy shortly after I was paid, I have been judged as having been given preferred treatment and therefore I owe the trustee handling the bankruptcy the full amount paid, nearly $10,000.00! To make matters worse the invoice in question was nothing but the photographer's expenses. In other words, the minute I received the payment I simply turned it around and paid it all to the photographer who has long since gone his own way and isn't responding to my calls or e-mails. What, if any, are my options at this point?

Do people lose their homes over health expenses?

WinnipegDragon — Wed, 24 Jun 2009 18:03:54 -0800

Do people actually lose their homes to pay for health care in the US, or is this an urban myth? Basically, I am doing some comparisons of the US vs. Canadian style single-payer health systems. What I can't find are real, documented cases of people being driven to bankruptcy and/or losing their home due to health care costs.

Does this really happen, or is it just a myth? What I would like are links to real stories of individuals who have lost everything due to health expenses, if they actually exist.

Much obliged!

Unsure as to how I should proceed.

Anonymous — Thu, 21 May 2009 14:14:31 -0800

The place I work may be going under. What should I do? I work as an attorney and the managing partner had all of us attorneys in a meeting yesterday. He told us that the firm is basically out of money and that he's worried about making payroll next week. We have 10 attorneys and 2 partners here, so it's a small firm.

I like the work environment here, and the partners are generous (to a fault, it seems). The main partner is a bit oafish and I think he may be putting his head in the sand as to how bad things really are. The other partner is bad about collecting his accounts receivable, which is probably the main reason the firm is in this mess.

I'm already looking for another job, but what do I do if this place does actually go under? There is work to be done and clients whose problems won't go away.

Do I stay on in the hopes I may get paid down the line, or do I just jump ship and leave all the work for others to do?

Is there a proof of claims deadline for Canadian bankruptcy creditors?

AgentRocket — Wed, 22 Apr 2009 15:00:33 -0800

Canadian (you are not my) lawyers: is there a deadline for filing a proof of claim in personal bankruptcies? A client recently filed personal bankruptcy in Ontario. The bankruptcy notice says that for a meeting to be held they must receive a certain percentage of proofs of claim within 30 days of the bankruptcy filing requesting such a meeting. But there does not otherwise appear to be any deadline for filing proofs generally, and neither Google nor the Act appear to suggest one.

We are not a huge creditor and don't have much hope in recovery, so I don't care to request a meeting; I just intend to file the proof of claim and go from there.

I know you are not my lawyer and are not giving me legal advice; any direction you can provide is greatly appreciated.

Sacrifice, Future, Family, Bankruptcy...

Anonymous — Thu, 02 Apr 2009 11:09:41 -0800

I'm currently working on my MBA at a relatively prestigious business school and am coming to understand that my parents are in a grave financial situation that may lead to them having to file for bankruptcy. My father's been unable to get steady work for the last year or two and my mother's income isn't large enough to maintain the household and service their debt. In all likelihood they'll lose their house in two to three months unless something dramatic happens. I'm considering dropping out of school and returning home to help them weather the storm but I don't know a) if they'd be able to stomach it, b) whether I'd be able to find a job quickly enough to fend off the fallout, c) if I'm really serious about doing this, d) if this is the right thing for me to do, and e) what it'll mean for my future. I'm really not too sure what else to write. I come from a pretty specialized professional background and have no idea whether I'd be able to get a compatible job back home. If you have any questions I'll try to elaborate so long as I can do so anonymously. I keep asking myself 'what would a man that I admire do in this situation' and have yet to come up with an answer....

Is this a reasonable refund request?

fireoyster — Wed, 01 Apr 2009 11:13:04 -0800

Is it reasonable to ask my attorney for a refund for filing a motion that had no effect? I hired a bankruptcy attorney and due to issues with a tax refund that he was never able to get straightened out with the local trustee, that trustee filed a motion to dismiss in late 2008. After filing a plan modification, I got caught up on the trustee payments but she never would go along with the modification and we were set for a hearing during the last week of March.

A week prior to that hearing, I decided to not go through with the bankruptcy. I e-mailed my attorney and asked if he could file a voluntary motion to dismiss, reasoning that this would "look better" to future creditors AND to have approximately $4,000 in undisbursed funds held by the trustee returned to me. I paid him $500 to file this motion (along with $3,000 through the bankruptcy plan, and another $500 for the modification), which he did file on the same day we met. I did not ask if the trustee's motion to dismiss would be a problem (I forgot to bring it up) and he did not say. I was keen on getting the $4,000 in held funds returned to me so I can reinstate two car loans, and discussed this with my attorney.

Two days after the hearing date had come and gone a visiting judge--that is, not the judge assigned to my case--signed the trustee's motion to dismiss and dismissed my motion as moot. The trustee's motion includes language requiring that any held funds be disbursed in accordance with any confirmed bankruptcy plan.

So, back to my original question: Is it reasonable of me to ask my attorney for a refund since my motion was basically useless, and I had no way of knowing in advance that the $500 would be poured down a dry hole? To be clear, I would have no problem having paid the $500 if the motion had been of use, but I feel like he should have known that the trustee's motion would "outrank" mine.

In a community property state, if I file bankruptcy will my spouse be held liable for debts I acquired before the marriage?

Anonymous — Thu, 26 Feb 2009 12:31:01 -0800

I have heard conflicting information: in a community property state, if you file bankruptcy (not joint bankruptcy) is your spouse held liable for debt you acquired before the marriage? Let me say upfront that I have a consultation for filing bankruptcy on Monday. I'm asking here because I want to make sure they're not just trying to make additional filing fees off of me by trying to persuade my spouse to file bankruptcy as well.

My spouse and I were married just a few months ago. We live in a community property state. Going into the marriage I had some debt. He's not a signer or co-signer on any of it or anything; our financial matters were completely separate. We haven't ever filed taxes jointly. We do not yet own any property together either, and neither of us own any real estate separately. The only notable thing either of us own is a car, which belongs entirely to my spouse. I am now looking into filing bankruptcy but whether or not my spouse will be liable for my debt will determine whether or not I file.

Some web pages say that my spouse will not be liable for the debt I had before marriage: 1, 2, 3

The woman I talked to on the phone, however, said that it doesn't matter if I acquired the debt before I got married, that my spouse will be liable for it. In other words, my spouse would have to file bankruptcy as well for anything to change.

Can anyone tell me which is true? On the one hand I'm suspicious since that doesn't seem to jive with anything I've read and they are in a position to make money off us, but on the other hand I don't know how trustworthy a bunch of websites are either. The place I'm getting the consultation is a place several relatives have used and it's supposed to handle more bankruptcies than anyone else, but I don't want to be given bad information just because they're a bankruptcy mill and think they can get away with it. I also don't want to show up to the consultation and accuse them of lying if they aren't, and if they are wrong, I'd like to have more to say than, "Well I read some websites..."

Drowning in debt

Anonymous — Wed, 11 Feb 2009 21:02:46 -0800

How do I know if I should be considering bankruptcy? My spouse and I have somewhere around $15,000 in credit card debt, and we each have student loans. Between rent, bills (utilities and such), card payments, student loans, gas, groceries, etc. we are getting by paycheck to paycheck. Most bills are paid somewhat late, depending on when paydays fall, which means we end up with late fees, making it even harder to pay, and it's an endless cycle.

I don't want to sound like I just racked up a bunch of debt and want out of it (which isn't the case - due to being laid off, I lived off my cards for awhile, and we moved to a different state for economic/job reasons, using the cards again).

How do I know when to begin contemplating bankruptcy? I don't want to think about having shit credit for years to come if we do this, but on the other hand I'm sure we already have shit credit from all the debt and late payments.

I live in North Carolina if it's relevant. Throw away email drowningindebtnc@gmail.com

Is this hopeless?

Anonymous — Tue, 10 Feb 2009 16:15:39 -0800

My mother took out credit cards in my name. She is now filing bankruptcy, and she is not able to continue paying the debt that's in my name. My husband's upcoming job will preclude us from filing bankruptcy for the debt in my name. Is there any way I can avoid paying $35k of debt she charged up in my name without suing her or otherwise getting her into serious legal trouble? I want to say first that I'm going to see a financial advisor asap. What I'm looking for is any information someone who has been in this situation before can give me.

When I was a teenager, my mom took out credit cards in my name because she had too much credit to get them in her name. She paid these credit cards for nearly a decade. It was with my knowledge, but I was a teenager so there wasn't a lot I could do either way, and even if there was something I could have done I'm sure you can understand why I didn't feel that I was in a position to say no. I figured she was paying for them, so it wasn't a huge deal. For the while that she could pay for them, I had good credit so I figured it must be okay. Plus there were pressing medical issues in the family that complicated things financially, which is why my mom had too much credit in the first place; it was the only way we could get by. When I got a bit older (I'm in my mid-20s) I didn't know what to do about the credit in my name because by then, it had snowballed to the point where all she could do was live off credit cards. I didn't want to put her in a position where she could no longer get by, and she was still paying for the cards, so... You can see where this is going.

Recently her paycheck got cut in half. Suddenly all the things she could once pay for, she cannot anymore. She can barely afford much more than her house payment -- which nearly became undoable -- and utilities, so she is going to have to file bankruptcy. That's fine, but it only applies to the debt in her name, not mine. She is co-signer on almost all of my credit accounts, but from what I understand bankruptcy will not wipe that out -- it will just mean that I alone am responsible for the money. She will not have enough money to pay for the accounts in my name, either.

I would just file bankruptcy myself, except my husband is starting a job next month that will disqualify us from doing so, since he will make too much money to file.

Needless to say, I'm quite upset that I'm going to have to pay back $35,000 that I did not charge up, especially when I couldn't have done anything when she took the cards out in my name. However, I am unwilling to get her in legal trouble over it because I don't think ruining our relationship is worth it, and I don't feel right doing it because it's not like she spent the money on frivolous things. From what I understand, anyway, all I could do is take her to court over the amount of the money, and she doesn't have the money to give me.

Is there anything else I can do? Despite our not qualifying for bankruptcy, paying back that much money is going to be a serious financial problem for us.

I'm not looking for a lecture about how I should get my mom in trouble, or how I should have done something to take the credit away from her sooner. Getting her in trouble is not an option for me, and I can't change the past. I'm not going to let her use my credit anymore, and she won't need to anyway since she'll at least have enough for living expenses. What I am looking for is either a "you should look into this option" or a "no, a similar thing happened to me and there's nothing you can do."

Fed up with banks' use of bailout money

hardbop — Tue, 10 Feb 2009 06:48:04 -0800

What happens if I default on unsecured debt? I'm fed up with the outrageous use of taxpayer bailout money by the nation's banks. I live in Florida, own my home outright and it is protected by the state's Homestead Act. I'd like to just pay about $20 a month to the credit card companies instead of the minimum payment(to keep them from claiming I stopped paying them) until I can file Chapter 7 in 4 years. What do you think?

GAP Insurance Problem - Help!

etherealclarity — Mon, 29 Dec 2008 08:45:34 -0800

My boyfriend Brett recently ran into a problem with GAP insurance that he purchased, and we are looking for a little direction to see where he can go from here. It looks as though he was defrauded by the car dealership that he purchased his car from, as well as potentially by the GAP provider, but the car dealership is now in bankruptcy, no one will return our calls, and he is stuck with $3200 in debt that he can't afford. Here's the detailed story. In April 2007, Brett purchased a car from a used car dealership in Spokane, WA called Town and Country Auto, Inc. He didn't have money for a down payment, but really needed a more flexible mode of transportation (other than walking or the bus) as he was picking up a second job and planned on moving away from the area in the next several months. Brett realized that GAP insurance (to cover the difference should something happen to the car while he was upside down on the loan) would be a good idea for him since he was rolling everything (down payment, taxes, warranty, etc) into the loan for the car. The total came to around $8,000, which he financed with Wells Fargo.

A few months later he moved to Maryland. In November 2008, Brett got into an accident with the car. Though the damage wasn't huge, the insurance company decided the car wasn't worth enough to repair it and declared it totaled. At this point the loan was down to $5500, and they declared the value of the car to be $2700 with a $500 deductible, leaving Brett with a total of $3300 to pay off to Wells Fargo. Once things settled down, Brett called Wells Fargo to inquire about how the GAP payoff should work, and they told him to call the GAP insurer to file a claim.

This is where it got strange.

Brett calls Beacon Industries, Inc and tries to file a claim. They ask him for a policy number, which he can't find anywhere in his paperwork (though he does have a copy of the GAP form that was typed up with Beacon's logo on it, as well as the receipt from the dealership that shows he paid $400 for GAP). They then attempt to search under first the VIN, then his name, but cannot find him in their system. At this point they tell him to consult the dealership. In the meantime, Brett calls Wells Fargo and asks them to fax a copy of the contract directly to Beacon, which shows both the GAP form and the itemized receipt from the dealership.

Brett calls Town and Country Auto, only to find that they've filed for bankruptcy. After many calls and an in-person inquiry at the office (during a well-timed visit back to WA for the holidays), it sounds as though Town and Country Auto never sent in the GAP paperwork to Beacon. The man we spoke with identified himself as Don Hess (who claimed on the phone not to have anything to do with Town and Country Auto, then claimed in person to be a contractor hired by the company, but is clearly listed by the BBB as the VP of Town and Country Auto). Don attempted to convince us to take Beacon to small claims court, since Brett would be unlikely to get anything from Town and Country Auto in bankruptcy. Don said that Town and Country Auto could be considered an authorized "agent" of Beacon and thus Beacon would still be responsible for Brett's GAP claim (and would have to go to Town And Country Auto for the $400 they never received). We were also able to get the number for the lawyer who is supposedly handling the bankruptcy, who we called and have yet to receive a call back from.

I did a little research on Town and Country Auto and called the Eastern District of Washington's Bankruptcy Court office. They couldn't find any record of Town and Country filing for bankruptcy. The person at the court office suggested that they might have filed under a different company name since they are incorporated, but when I inquired over the phone at the Town and Country Auto office, they refused to tell me what name it was filed under. When I had the opportunity to inquire in person, they said it should be filed under their own name (no incorporation).

Doing a little more research, it seems that Beacon Industries Inc. is not without its own problems. It has an F rating with the BBB and (according to the internet) a history of ignoring, losing, and underpaying claims with GAP. See this article. This information is troubling, and seems to reflect our situation. After Wells Fargo faxed Beacon copies of Brett's paperwork, Brett has called Beacon to follow up numerous times, but no one will return his calls.

So, Brett still owes $3200 to Wells Fargo, is already pretty strapped financially (and recently started college again in order to fix that problem for the longer term but will have to cut back on working hours in the meantime), and everyone is pointing the finger at someone else. In the short term we've been carpooling, but due to work and school schedules he will most likely have to get another car in the next few months, and since he doesn't want to take on more debt, his plan is to have at least a little money saved and hopefully pay for a cheap-ish "beater" car in cash. However, with this additional debt and his lessened hours at work, this will be extremely difficult.

It seems pretty clearly that the fault of the non-filed GAP paperwork lies with Town and Country, but if they are truly in bankruptcy (can this be verified somehow?) then the chance of Brett getting any money is extremely small. Beacon could potentially be held accountable as Don Hess claimed, but they won't return any more phone calls and clearly have a pretty shady reputation.

What should we do? Is there any government agency to turn to? Call a lawyer? Sue someone in small claims? Try to get the debt rolled up in Town and Country's bankruptcy (assuming we can finally get in touch with their lawyer)? The worst thing Brett has done in this situation is trust the wrong people, and this is debt he truly can't afford.

What happens if a company you have an outstanding order with goes bankrupt?

csimpkins — Fri, 12 Dec 2008 10:21:57 -0800

A company we ordered flooring from filed for bankruptcy while we were waiting for our stuff to come in. What now? We ordered $140 worth of flooring from iFloor on 11/22. Thirteen days later they filed for bankruptcy. They never contacted us to let us know. So today, I called to find out if our stuff arrived and am greeted with a notice that the store is closed - permanently - and I should leave my info after the prompt to be contacted regarding the issue.

I'm pretty livid. But even more so, I'm unsure of what happens now. Do we get our money back? Do we get our stuff? Are we screwed? How long does a resolution, if there is one, for these things generally take?

To A Near-Disabling Extent, I Wear the Opposite of Rose-Colored Glasses

Anonymous — Mon, 08 Dec 2008 13:51:26 -0800

I see the world, and all in it, as something vicious and ready to attack me, and that influences far too much stuff in my life. Help. As a pre-adolescent and young adolescent, I was badly bullied; one bully was so out of control he went away for a few weeks to a mental health facility; in another case, older Scouts in my Scout troop did such things as shitting in my sleeping bag, as well as worse things I just can't remember. As an older adolescent, my family saw bankruptcy and foreclosure thanks to unethical actions by people my father worked with. I remember feeling so helpless to stop the world's attack of my family, trying to do small ineffective shit to try to help my family (dishes, vacuum, etc.), trying to talk Mom down from her sobs. At college, I was stuck on a geographically remote campus (30 minutes from even a diner) and while there they destroyed any confidence I had in myself.

The problem is that I expect the worst from everyone I ever interact with, and from Fate. It colors everything everyday. If we have a pleasant conversation, you're merely tolerating me. I can't rustle up the desire to form new friendships, because if we become friends, something will happen. If you're a girl, you certainly won't think I'm funny, or interesting, or cute. Ask me whether I really believe I'll ever reach any of my Major Goals, or when I last had fun. If something bad can happen, it will. When the worst happens, I take it as confirmation. When it doesn't happen, it doesn't really penetrate; I simply grimly prepare for the next shot. My rational mind can and does counterargument, but it's not a match for the feeling, it just lessens it. Occasionally.

This issue's been so stubborn it's made therapy last years: perhaps because when something bad happens in my life, big or small, that part of me seizes upon it as "evidence" it's right, reinforcing itself.

What do I ask? Well, how can I go about really disabling this thing, since it's so well-planted in my head, coming from so early in my life? It's not part of the back-and-forth thoughts I hear myself think; it seems to be part of the inherent, automatic assumptions I make about everything around me (on the same level as "the sky is blue," just assumed). Others got help breaking their lifelong self-delusions here; I'm hoping to get the same kind of advice.

I want to start assuming the best of people, and view new possibilities with freshness and the desire to explore, not thinking everything is predisposed to end badly. I'd like to be as confident in others' friendship (or maybe love) as I am in my cat's affection: feel that same peaceful security in others.

I'm at UtterlyAnonymousEmailAddress [at] gmail dot com, if needed. Thanks in advance.

Should I officially go broke?

Anonymous — Fri, 05 Dec 2008 10:23:52 -0800

Question about going broke. I have been out of work a total of five months this year, having gotten laid off twice. Currently, I am not working and am on unemployment. After paying all my bills I have 65 dollars a week for food, etc... in NYC. I have 17 weeks of benefits left. If I do not get a job in these 17 weeks remaining, I will have to default on all of my debt. If I don't find a job, should I declare bankruptcy? The details: I owe about 9000 in credit card debt, and about 3000 dollars in medical and other unsecured debt. I have a 401k with not very much money in it, maybe 3000 dollars. I have no home, no savings otherwise, no assets, and no job. I currently collect 340 dollars a week unemployment benefits.

How can I dig myself out of this credit card hole?

arniec — Sun, 16 Nov 2008 14:31:48 -0800

Given the current economy, would doing a "charge-off" on my credit cards be a reasonable option, and how would I go about doing it for my biggest benefit? Many years ago I had a college credit card that I couldn't afford to pay off. I finally asked about a charge-off on it; about 80% of the card's balance is as low as the company would go. Given that the balance was about $2000 I don't feel the charge-off was really worth it, so I didn't do it.

Soon after that, I bought my first house.

Now however I find myself in much worse credit card debt, nearing $30,000 over a span of 6 cards. The two highest cards have $8,000 balances, and then a few thousand on various other cards. Most of these cards are charging me 30% interest. I have taken a second job, well paying, just to pay off these cards but the interest rates are so high that I just can't seem to make a big dent. Working all of 08 putting all my 2nd job's money to the cards, not using the cards and I'm only in 3k less debt than I was.

I know of some people who told me that they were able to get cards charged off for pennies on the dollar without declaring bankruptcy. I told them it probably hurt their credit, but they were just happy to have the debt gone and credit scores recycle every 7 years anyway...

So I'm reminded of my charge-off experience and that they'd only go t 80%...if I could get even 50% on one of the $8k cards, I could pay that now and save myself so much in interest and use the snowball method to pay down the others...but when I tried last time they just wouldn't go that low.

Complication: My wife and I DO plan to move before the next 7 years, which would involve selling our current house and buying another, so I really DON'T want to nuke my credit where I can't move for 7 years.

Any suggestions on what to do here?

Are No-Credit Auto Loans No Problem?

lekvar — Sat, 08 Nov 2008 12:10:26 -0800

Online auto loans; too good to be true? My credit is non-existant, but I need to get a new(er) car. I have a good amount of money for a down payment, but no reputable bank will touch me. However, I just found a number of online auto loan lenders who specialize in bad/no credit/bankruptcy loans.

Obviously, there's no such thing as a free lunch. Just as obviously, I'll likely be hit with a usurious interest rate. I'm OK with that for the time being, but I feel like there's something I'm overlooking.

Any MeFites have experience in this area? Are they a scam or a godsend? Any hidden weirdness I should look out for? Any specific recommendations?

Hard facts and anecdotes are equally welcome.

Garnished wages can we still settle the debt?

Anonymous — Wed, 29 Oct 2008 20:49:11 -0800

My Mom’s wages are being garnished by a collection agency. Can we still settle the debt? How much do we offer and where do we get the money? My mother’s Ford Fiesta bit the dust a month ago and she needed to get a new car. Her hours have recently been cut at her old job and she has just taken a second job for significantly less money ($7.50/hr versus $10.50/hr). After talking with her I came to the realization that she couldn’t afford to even purchase a reasonable beater for a few grand. I decided that I would help her out with a few hundred bucks and an interest free loan on the condition that I could look at her finances and make sure everything checked out. Here is what I found:

Her monthly income is variable but appears to average about $1000/month +/- $200 (her rent is $480/month).
She has one credit card with a balance of about $1100
She owes a collection agency about $13,000 and they have begun garnishing 25% of her wages at her primary job. The debt comes from a credit card where the original balance was about $6000. She settled with the credit card company but then failed to make the payments and the account sat in collections for a couple of years.

Here are my questions:

Now that the collection agency is garnishing her wages is it too late to settle with them?
If we can settle with the collection agency how much should we offer?
If we do offer to settle, how should we raise the money to pay them off? Will banks make loans to me or my Mom for this purpose?
Should my Mom just file for chapter seven bankruptcy?

We are both located in Michigan. My Mom does not have any significant savings or assets other than a 401k. I have only been out of school for a couple of years so I am still trying to get on my feet. I have good credit and some savings, but not enough to pay for this endeavor unless I borrow against my 401k.

Is my debt going to ruin my parents' credit?

Anonymous — Mon, 20 Oct 2008 07:09:14 -0800

How will a line of credit that my parents cosigned affect my ability to enter into a debt repayment plan through credit counseling? I've reached a breaking point and I need some help figuring out how I'm going to deal with my debt. I already plan to speak to a credit counseling service and possibly a trustee in bankruptcy next week, but your advice is greatly appreciated. In general, I understand what's going to happen in terms of setting up a repayment plan or a consumer proposal. I'm concerned because part of my debt is an $8000 line of credit that my parents cosigned for me when I was a student.

Is there a way for me to address my debt woes without screwing up my parents' credit? Secondary question: how do you talk to your parents about stuff like this? They're going to be horrified and disappointed in me and it's making me sick thinking about it.

Supporting details: I'm in Canada, I'm 35 and I owe about $45K total ($36K credit cards, 8K line of credit and 3K overdraft). I have no assets and I'm just getting back to work after losing my job a couple of months ago. My parents could almost certainly pay off the line of credit easily... they're pretty well-off, but a little sensitive about money right now because my dad is retiring next year. Our relationship is OK but not fantastic.

Throwaway gmail account is canadiandebtor@gmail.com.

My bankruptcy dismissed, but so was my debt.

Anonymous — Wed, 15 Oct 2008 11:08:28 -0800

I filed for Chapter 7 bankruptcy(mostly credit card debt) a couple of years ago, and it was dismissed on a technicality (missed a credit counseling class). I was going to refile as soon as I got a call from a creditor, but none of them has ever called me, and it's been 2 years now, and I'm wondering what to do. I just checked my credit score and it shows 0 delinquencies, and the only debt I have is my car payment, which is almost paid off. It also shows a bankcruptcy that was dismissed. What should I do? Just let it ride? What happens if I apply for another credit card, will they see that my bankruptcy was dismissed and hit me with a $20,000 bill? I did everything through a lawyer (who wasn't very good, apparently.)

Is Alitalia Dead?

brandman — Mon, 15 Sep 2008 08:26:08 -0800

What's the latest news on Alitalia? I know they've been struggling badly over the past few years, and there appears to be some new developments in the past day or two. My interest in this is that my parents are currently in Italy, flying back to the US next week. One of their flight segments is on Alitalia, so I'm wondering what the likelihood is that the airline will cease operations (or at least ground some flights). Any thoughts?