My wife and I have been unemployed for a year….we own(buying) a home in which we would like to keep along with 1 vehicle.We are working with the mortgage co. and auto co. but there is also a line of credit loan on our house in collections.We are at wits end now with other collections depts. calling every day.These include,repoed vehicle,medical,credit card,and of course the HELOC on our home. We worked so hard to build our credit back up from the past poor credit history we had and now it is nose diving again. We have 2 kids in their teens that I can tell they are feeling the effects of our situation and it hurts.
Is there anything out there that can help us as we are flat broke?
You are wise to tackle this situation since it is impacting your kids.
I am sure your children are observing the collection efforts and the stress you and your wife are feeling. It is natural for them to worry and get stressed themselves. The worst part os the kids only see the effects of the debt problems but have no control to deal with it, that is, unless you let them.
In your situation bankruptcy seems like the logical and only sensible approach. You have all this debt cascading down on you but no means to repay the debt. The only legal way to get a fresh start will be to seek bankruptcy protection through the court.
Depending on the value of your home, the home equity line of credit may be able to be reduced or eliminated in a Chapter 13 bankruptcy so there are some good benefits of looking closely at bankruptcy.
I would suggest that you find a local bankruptcy attorney you like. Make an appointment with them and go in and meet the person face-to-face. The attorney will review your situation. Be sure to ask all the questions you can think of.
Next, it might not be a bad idea, if you agree, to go home and discuss the bankruptcy approach as a family. Let everyone participate in understanding the path you may embark on and understand what bankruptcy means for you.
The kids will find some comfort in knowing under bankruptcy you will now have legal protection and the chance to start over. Rather than watching events unfold they can be knowing observers and that will minimize their fear from uncertainty.
When it comes to kids and teenagers and financial problems at home, my approach is they are small or young people, not stupid.
As far as working hard to build the credit back up, you know it can be done again.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.