Monthly Archives: December 2015

Best advice for my situation please

I have recently resigned from a position and now I am in a financial bind so to speak. When I took the job, my employer paid for three years of training up front (approximately $8,000) and now they want me to repay them. I was not given a specific timeline or amount to start paying back right away. The employer took my last two checks at applying about 1,000 off the top. Now, what would be the best course of action to pay this off? I do not wish to use my credit card or savings because it would leave me in even more debt. I have other financial responsibilities to think about. I am also in the process of trying to secure another position at this time.

In the past, my family and I have helped my husband. How do I get him to understand that he really needs to start stepping up and helping me through this very stressful portion of my life? I am not down emotionally with the things that have gone on. As a matter of fact, I am taking proactive steps to secure myself as a potential employee with a great talent in my field. I am also trying to secure my financial future the best way I know how.

Regarding my family – we are a self employed couple (22 years) in Maryland with nearly 200K in combined personal and business debt which we incurred when we moved our business to a renovated space on our property. The economy over the last 24 months has severely impacted our income and made servicing the total debt impossible. Despite many cost cutting measures we may be forced to file Chapter 7 for personal and possibly business debt. We have met with one attorney so far and gotten a second opinion from a CPA who reviewed recent tax returns. We plan to meet a second attorney before making any final decisions. We have been advised by the first attorney that “by law” he can not advise us to assume any new debt prior to filing. We are in need of a vehicle and he knows that but has emphasized multiple times he can not advise us to take on new debt. Frankly his tone and his contract language beg us to read between the lines.

I have had a friend (also self employed) nearly file and they advise us to get a car loan before we file. Our credit is good, we are current on all loans and credit cards, but feel certain we are at risk of defaulting soon. If our personal debt alone is discharged our cash flow will allow us to continue our mortgage and other necessities as well as make a modest car payment.

My question is this, since we have applied for a mortgage modification as well, and our case is now in the hands of an agent, will applying for new credit before they determine our case be a big mistake? Does anyone else have thoughts on options? We do not own any assets of value that we could sell or we would have done it already.

We may or may not opt to file business bankruptcy as well. One of the businesses is owned 51/49 (woman owned) the other business is owned jointly. Both are S corps. The house and most of the credit cards are joint debt.

I need a game plan!

I could really use some advice. We have 70K in credit card debt across four cards (3 Chase, 1 Bank of America). Most of that was to complete two international adoptions and to fix major house issues. Some of it was stupidity… well, actually all of it was stupidity. We should not have gone into such debt. I was thinking with my heart and not my head. (But not to do it would mean I wouldn’t have my daughters today. How to put a price on that?)

About 3 years ago, I completely revamped my budget to cash only using the Dave Ramsey Total Money Makeover. We did have a card balance of 90K, so have managed to pay down 20K of it. However, during that time I also had to finance a (used) car and our septic system required emergency replacement. So in actuality, my credit card debt went down 20K, but I incurred other debt to the tune of 23K. We’re pretty much right where we started.

We also have 5 kids, I work two jobs (one part time, one full time) and my husband is employed full time. He is going to be having surgery in a month and will need to be completely off his feet for 6 weeks. My job had a salary freeze, and his cut out 4 weeks of employment. All of this combined has made us unable to make the payments.

Right now we are current on everything, but I have paid down with our savings. We have $100 in the bank–that’s it–and next month we will be unable to meet the credit card bills. I have no way to buy Christmas gifts for the kids and getting food on the table is tough. I feel like such an idiot for putting my family in this spot!

I don’t know what to even do next. Should I call Chase and BOA and tell them what’s going on ahead of time? I am very worried about them calling my work or my kids. Because they’re older, I’m afraid the newly adopted ones will blame themselves for the situation.

I thought about making an appointment with Consumer Credit Counseling services. Can they do anything for me that I can’t do myself? Will Chase even work with them? Right now my interest rates range from 7.99% to 11.24%. If they’d drop the payment amounts down, I might have a fighting chance. That’s about the only way, I think. Should I use the cards to get a few Christmas gifts? Or should I just go delinquent on the cards next month and pay cash? (We keep it simple-3-4 gifts per child.) Will they be able to even help me or am I talking bankruptcy? And what happens when my son wants to go to college in 2 years–how will I help him get a student loan?

I really want to pay this stuff off, but nothing seems to be working in my favor right now. Thanks for any advice! I’m so scared and ashamed of myself.

You are where I was at ten years ago, and I wish someone had of told me: stop using the credit cards. You can live without Christmas. Please, see some sort of legitimate debt counselor to help you out of this crushing debt. Do not be ashamed. I wish I had of done something like that ten years ago. Now I’m in bankruptcy. Hope this helps and good luck.