I am married, no kids, been in my house for 10 years. Recently, taxes on the house have gone up by 100 + a month, I have about 30 K in credit card debt.
I have been researching Dept reduction programs and the like, and they scare the heck out of me with their success rate (less than 20 % ) and with the people sometimes getting sued while in their program. I have called the credit card companies many times to try and get the interest rate reduced, but due to late payments (less than 30 days) and due to the current economic climate, they are unwilling to work with me. On a standard month to month basis, I am just breaking even or paying out more than I am pulling in (The whole robbing Peter to pay Paul theory)
I looked in to the whole bankruptcy (both chapter 7 and 13) and while that might be a solution, that is pretty drastic, ruining your credit for the next 10 years, heck even going down that road, I would have to hire an attorney, and I can even begin to afford that.
With the rising interest rate of these cards, it is getting harder and harder to make ends meet on a monthly basis. And I am scared if I don’t come up with some sort of solution or ideas on how I can get this under control, I am afraid that the house and everything else I have worked for can be put in to jeopardy.
Any tips or advice would be great. I am just looking for some sort ideas to keep me from getting in to more trouble
No matter which path you elect, if you don’t make at least the agreed upon minimum contractual payments your credit is going to take a hit.
The way you afford a bankruptcy attorney is to stop making the credit card payments and save up the fee. And you said something that is a common belief, but not accurate. Bankruptcy does not trash your credit for ten years. It will remain on your credit report for seven to ten years but you can begin rebuilding your credit immediately after filing bankruptcy.
You are right to be concerned but the walls have not caved in on you just yet. You still have a little time. You need to use that time by researching your options. I would suggest that rather than making assumptions about bankruptcy that you instead find a local bankruptcy attorney that you like, make a free appointment and go in to talk to them about your specific situation.
I need to get you unglued from the paralysis of analysis and tracking a real solution so you can take action soon to begin to resolve your situation.
I’m really not trying to be a bankruptcy cheerleader here, but there simply is no other solution that gives you any right or legal protection from creditors and stops all collection activity.
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.