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Well, it's been a pretty depressing day. We met with and retained a BK attorney today to file Chapter 7. We had hoped to avoid it and to somehow turn things around enough to at least be able to offer partial settlements to our creditors, since we do feel morally obligated to pay our debts. BUT since we are now about 90 days delinquent on all of our accounts, and we are still barely living paycheck to paycheck, we just couldn't see any way to manage even partial settlements on our $140,000 credit card debt.

Add to that the fact that one creditor has already moved my husband's account to their litigation department, and we felt that we had to protect our wages from being garnished. We would have waited to see if they actually filed suit, but since it's very likely that my husband will pick up some seasonal work over the next two to three months, we didn't want to risk not meeting the means test by waiting to file (because after that two to three months, the seasonal work will die off--but it will stay in the means test for six more months).

So we did what we felt we had to do, but it's depressing. HOWEVER, I must admit that it did feel great to be able to tell the collector who just called that we have retained an attorney and please don't call back! (I have to look for whatever bright spots I can find at the moment!)

Even though that is a hard decision to make :oops: and to go through at least you will feel relief from those depressing calls. :wink:

Sub: #1 posted on Fri, 07/11/2008 - 08:25

ladybug ladybug

(Posts: 2757 | Credits: 282.45)

alias, I know how today feels, we did it a few years back, but it will be so much better in the long run, only one word of advise....Be very careful when you start to re-establish your credit, don't get back in over your heads, its very easy to do, even with the BK lots of "sharks" love to give credit to "fresh out of BK" folks. Trust me I know...That's what's gotten me into my current mess. But this time we are doing dmp and believe me I'm feeling the pain and I think there a reason for that, so this time I will learn my lesson, since I obviously did not the first time:)

Best of Luck to you! Reny

Sub: #2 posted on Fri, 07/11/2008 - 08:41

lmale lmale

(Posts: 741 | Credits: 98.46)

lmale, I totally agree..I filed BK 2 years ago and I'm heading down the path that lead me there the first time. But I'm getting control of it before it gets to far. Your right, a few months after I filed I was getting offers left and right for credit cards and car loans and whatever's so tempting.
Now I'm back with 5 credit cards, but they are small balances that I can handle. I'm going to get them paid off and closed and just going to keep one major one.

Sub: #3 posted on Fri, 07/11/2008 - 08:58

PinkLady PinkLady
(Posts: 1722 | Credits: 277.47)

Thanks everyone! Even though right now I never want to see another credit card in my life, I'm sure that it will be tempting when the offers start rolling in. I need to be sure that we are better disciplined and that we somehow get some money saved for emergencies.

One of our biggest problems was that my husband was self-employed and we would use credit to buy materials for his jobs, then by the time he finally got paid, we used the money for living expenses instead of paying off the materials. (And sometimes he didn't get paid at all.) Since he is still doing some side work, we will definitely have to watch that tendency very closely!

Sub: #4 posted on Fri, 07/11/2008 - 09:23

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

My husband also was a contractor/builder and wouldn't get paid until the job was completely done. Our biggest problem was when he built his brother his house and the bank wouldn't pay him a penny until the home was finished, so for 7 months we had no income of his coming in...that was rough and that is what put us in the nose dive...and besides that I was just diagnosed with MS which didn't help matters at all.

Even though we hated to do it we had no's been 5 years and everything is great...he has manged to refinance our home and purchase two rental properties and a newer it will get better it just takes a little while.

Sub: #5 posted on Fri, 07/11/2008 - 09:30

ladybug ladybug

(Posts: 2757 | Credits: 282.45)

Thanks, Ladybug! It's nice to hear some encouraging words from "recovering" BKers! The one bright spot I keep thinking about right now is that I can't wait for all of the collectors to start calling again tomorrow morning so that I can give them our attorney's name and number!

Sub: #6 posted on Fri, 07/11/2008 - 09:38

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

Pretty soon you will not cringe every time your phone rings because they can't hassle you anymore.

Sub: #7 posted on Fri, 07/11/2008 - 09:41

ladybug ladybug

(Posts: 2757 | Credits: 282.45)

Yes, I can't wait!

Sub: #8 posted on Fri, 07/11/2008 - 09:42

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

Some creditors will keep calling until you have an actual case number.

Sub: #9 posted on Fri, 07/11/2008 - 22:38


That would be a bummer! But my attorney's receptionist did tell me that once I tell the creditors that I have retained them, I shouldn't continue to receive calls, and if I do to let her know and she will contact them.

Sub: #10 posted on Fri, 07/11/2008 - 22:42

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

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