“Dear Steve,
I was recently delivered a Writ of Garnishment, taking $348 per check to pay back a $6200 personal loan from Springleaf.
I only clear $1000 per check.
My mortgage is $1385 and My car is $375
That doesn’t leave a lot of room for gasoline, natural gas, power, phone, food, clothes, student loans, car insurance, water, and the myriad of other stupid loans (like the $4500 to replace my furnace or the stupid payday loans, and the credit cards). My wife works, but she’s got payday loans, and student loans of her own and thus isn’t very helpful in catching anything up.
I’ve applied for a second job at 8 locations – even though they want me to work nights, I have to interview during the day… rough to take a day off from my job to interview for another. This was BEFORE I got the garnishment notice. Now, if I get a second job I’ll have to work it full time just to TRY to catch up. If I spend all my time working to pay off debts I might as well just stop working and die.
It’s completely morbid, but if I off-myself will my kids and wife be left with the debt? It’s not an option, since I can’t afford the goddamned bullet or pocket-knife even if I had the courage to do it…
I bring home $2k per month after taxes and deductions, and my expenses are around $2500 – that’s just to remain alive in house and home – but now that I’m being garnished $696 per month, I really can’t pay anything. It’s all I can do to keep food in my son and daughter’s tummies…
So what should I do? Bankruptcy? Flee the country? Abandon my family to the in-laws? Knock over a bank? If I had the first clue how, I’d pick up a contract to assassinate someone for a nice payday. It’s bad when you want to kill yourself to avoid your debt, it’s worse when you’ll kill someone else to pay it off.
In all seriousness… I’m fucked. I can work 80 hours a week and not pay my debts, so why should I stick around? What can I do?”
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The Answer
While it feels hopeless at the moment, it doesn’t have to be. Most likely you both need to file bankruptcy and get the fresh start and second chance you are entitled to under the law.
Leave all the weapons along and just go see a bankruptcy attorney. A bankruptcy for both of you will most likely end the garnishment and payday loans. It will give you the breathing room you need to start over. But don’t waste this experience. Take what you can from it and don’t make those mistakes again.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on how to check out a debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.
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