In May 2009, I was laid off. I had an appointment with a bankrupcty lawyer the day after I was escorted out (I had fairly high security clearance). She told me to hold off on the bankruptcy due to whatever severance I might receive.
I held off and held off…and had a really rotten relationship in the meantime. I regained employment at about $20K less than my other job and in the meantime spent my IRA — which resulted in my owing the IRS $12,777.
I wanted to put my IRA towards my outstanding bills, but my lawyer advised against it. Where did it end up going? See above bad relationship comment.
So now I can’t file bankruptcy; the lawyer informed me that due to the IRA disbursement, I’d be on a 100% repayment plan — equating to about $1800 a month, PLUS my $800/month mortgage…which would leave me with about $200/month to live on. (I’ve already paid the lawyer $3000 to retain her.)
I have two credit card companies who have tried to put liens against a part-time job I had in lieu of a “real” job which fell through when I quit the part-time job; a lien against my house, and most of my creditors have passed to collection agencies. I have a few other judgements against me which I haven’t heard more from yet.
Most of my debt is unsecured (credit card), I have quite a bit in payday loans also. I had two cars repossessed but of course they weren’t worth what I owed on them.
My main question is, I guess, what can I do? Can a debt counseling/management company help me?
I’ll be honest, what prompted my asking was the question posted by the gentleman who is so depressed he’s considered suicide.
Believe me, if it weren’t for helping out my elderly father, that would be a viable option for me anymore.
Thanks for your time!
If you could answer two questions, then I can get back to you with some guidance. When did you take the IRA withdrawal and for how much?
Please post your answers in the comments section below.
My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
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