I can't take anymore

[loveadobie]

Pay all that you can to get your mortgage current. See if you would be eligible for refinancing. Can you really afford this house? You may have to let it go.

Take care of your immediates; food and shelter.

Don't worry about the credit card for the time being. Pay just a little to try and keep them off your back.

Really see if you are to the point of bankruptcy.

 

[Planogirl]

A chapter 13 bankruptcy will stay on your report for 7 years. It's the chapter 7 that stays for 10. Keep in mind that a foreclosure will also stay for 7 years.

A chapter 13 can be helpful particularly if you're making payments anyhow. You will be locked into a payment plan that should be manageable and you might be able to save your mortgage. It never hurts to talk to someone.

 

[STLDisney_Freak]

I know you don't want to go the Bankruptcy route, but if you're making $500.00 less a month that's a huge chunk of change. You may want to reconsider this alternative. No one who has a sense of ethics WANTS to declare bankruptcy, but in this economy it has become a necessary evil in order to survive.

Yes, a bankruptcy is on your credit report for at least 7 years, but be comforted in the fact that MANY people are declaring these days and it doesn't have the stigma it used to have. As an added bonus, bankruptcy will stall the foreclosure and perhaps make the bank become a little more dedicated to working with you to save your home. The last thing banks want is one more property they're going to have to maintain in a sluggish housing market.

Be aware that even though you're making payments, your credit record is already trashed. Many people I know found out that even if they worked with a counselling company to get their debts paid off, their credit record was just as bad as if they had declared bankruptcy. AND they couldn't get new credit without the same fees and penalties they'd get with a bankruptcy on their record.

ALL of them decided that if they were going to be dunned even as they were paying things off, they might as well clear all the debt and keep their cash. The system is set up to penalize them even if they did the right thing (as you've just found out).

I wish you nothing but the best of luck. I hope you'll reconsider bankruptcy and get some counselling about what your options are.

I totally agree with everything she said here.

 

[bettymae1121]

I don't care for credit boards, they don't seem that welcoming of newbies (if you ask a question that has EVER been addressed in the history of the site, they'll just tell you to search the boards and read).

For newbies, I recomened Credit InfoCenter, while they do encourage you to read a bit before posting, they'll still generally answer your questions and get you moving in the right direction http://www.debt-consolidation-credit-repair-service.com/forums/index.php

Now, as for that letter...they CAN'T garnish your wages until they get a judgement against you, which means they have to sue you first. No judge is going to look kindly on a creditor that sues when the debtor is already making payments, and even if they did get the judgement, they are still limited by law as to what they can take, usually it's just a small percentage. The website I linked above can help you if you do find yourself going to court, as well as how to deal with collection agencies and a host of other issues. They even have advice on foreclosure situations.

Your credit is trashed, negatives (lates, defaults, etc.) stay on your credit report for 7.5 years anyway, so I don't see the difference between that and BK, as far as your credit score goes. And a BK matters less and less as it ages, you'll find your score will be decent (not great but not in the gutter either) a few years after BK, you'll be able to get loans even, though the interest rates will be higher.

Knowledge is power, and hiding your head in the sand is only going to make things worse. Read, read, read, ask questions, research, and take your power back!

 

[mickey&minnie04]

I just got home from work late again. Yesterday my car battery died in my car, found out that I have 30 days to leave my home due to foreclosure.

Then today to top it all off, I get a letter from a debt collector that they are going to garnish my wages. I am sitting here crying and trying to breath and not give myself a heart attack because I am at my wit's end.

I can't handle anymore and the amount that they want to garnish is ridiculous, I have been paying them but now its not enough and they want it paid off. I can't even tell you the thoughts running through my head.

I feel so alone right now and there is where I come. I must be crazy, but now I just dont' know what to do or where to turn.

Have you looked into Chapter 13 bankruptcy? This will allow you to pay back the amounts you are behind over I believe a 3-5 year window. Now it will only work if you can make your current monthly mortgage payments. you can put any back mortgage payments, credit cards, collections, car payments ( and you keep your cars ) into this repayment. Plus you can put the lawyers fees into the amount. I believe you will have to pay a retainer up front, but if it helps keep your home then it is worth it. As soon as it is filed they can't touch your home or cars ...not sure about the wage garnishment ( i've never known anyone that had to deal with that ). I would abdolutely call a lawyer as soon as possible and see if this might be an option. My sister was told by her lawyer that he has been able to stop foreclosures on the day of an auction 2 hours before it by filing a banruptcy. My sister is paying $850 a month to pay back what she was behind...the only way she was able to do this was by putting her car payments into the bankruptcy ( they equaled about $800 each ) so, yes her cars are tied up in this, but she is able to get back on her feet. If I can help answer any other questions just PM me ...if I don't know I will ask her and get back to you. This is nothing to be ashamed of.....bad things happen to good people!

 

[wvjules]

So sorry you're going through this. Take a deep breath. Have you contacted an attorney regarding bankruptcy? That might be your best option. Do you have any family nearby? Trust me, there are many people in your position. I'm helping my best friend short sale her house right now. Bad things are happening to good people all over the country, but this isn't the worst. Try to re-group. It may sound silly, but making lists always helps me, and maybe you won't get so overwhelmed.

Call the agency that is trying to garnish your wages. Tell them you don't think the debt is yours. The best way to work with collection agencies is to talk to them.

NEVER talk to a collection agency on the phone.

OP, did you follow any of the advice that was given to you last week about this agency and debt?

 

[cteddiesgirl]

If you're going that route, calling isn't best. Writing a letter about it and sending it with Return REceipt (so you can prove they got it) is the better way.


I was just reading a thread elsewhere and it was mentioned that companies cannot legally garnish more than a certain percentage of your income that isn't dedicated to needed things (housing, etc). So their little words don't mean a thing because they are limited legally to what they can actually do.

But those percentages vary from state to state. And in some states, that can be pretty high.
For NJ (where OP lives), http://www.small-claims-courts.com/Wage-Garnishment-Laws.html#31
10% gross 25% of disposal earnings whichever is less but no execution on gross wages of $154.50 or less a week.

Heck. Indiana (where I live), it's up to 25% of so called disposable income.

There are also a lot of things that they don't take into consideration when they figure your disposable income.

Hang in there. There are lots of other people with the same problems. I have to live with my dad because I can't afford to live on my own. I consider myself fortunate to have him.

 

[Luvchefmic]

I really wish OP would check in

 

[PigletsMommy]

OP I would seriously just call and consult a bankruptcy attorney. A lot has changed in the past few years. There are lots of people who are having financial problems so you are not alone.

Bankrupcty is not as bad as at it used to be. I know 2 people who filed Chap 7 bought a house winthin the next 3 years. Was their interest rate higher than someone with great credit? Yes...BUT they were able to do it and rebuild their lives. It does stay on your credit but you will still be able to move on.

It doesn't hurt to talk to an attorney and see what your options are.

Just know that you are not alone. The economy is still bad and there are a lot of other people in your situation.

 

[Mickeyistheman]

OP here, I do need to explain a few things to everyone first.

I do not OWN the home, my step father does or did. Due to his choice, he could not make the payments. He has tried (or so he said) to get them to lower the rate and was not able to. We have known since August of last year. He just got the court date and has no intention of doing anything about it. My brother is able to move in with his girlfriend, I am looking for a room to rent but where I live its not cheap by any means.

My mother just got her own apartment, she makes more than I do. I am 3 2 years old and I am embarrassed at what I make, I should be making more but the way the economy is right now its not going to happen and even if I did get a second job, the money would not be enough still. I looked into that already. I have been asking friends and even family if they had a room to rent.

My cousin who is a lawyer, helped me yesterday to the best that he can, however he is in the military and is shipping out for 9 months. They have already issued a judgement and I must write a letter to object within 10 days and then appear in court. I got the number for Consumer Credit Consuling, but I am waiting for my cousin to get back to me about the letter I wrote. He also called this Debt agency and tried to talk with them but because he is shipping out they would not speak to him. He says not to worry, but I am worried. I don't have a place to live, if I at least had that, THEN I would not be as stressed as I am right now. Not to mention last October I was rushed to the ER and have THAT ER visit that I am paying off because I was unemployed I did not have insurance.

My cousin told me not to declare bankruptcy yet. He offered for me to stay with his family while he is away, BUT he lives in DC and well my job is here, I don't know what to do. There is not a way to be transferred down there so I started looking but so far nothing. I sent a few resume's but it took me over a year to find this job and it was with the same company that had to lay me off. I am not hiding, I am just very scared of what is going to happen.

 

[Luvchefmic]

OP here, I do need to explain a few things to everyone first.

I do not OWN the home, my step father does or did. Due to his choice, he could not make the payments. He has tried (or so he said) to get them to lower the rate and was not able to. We have known since August of last year. He just got the court date and has no intention of doing anything about it. My brother is able to move in with his girlfriend, I am looking for a room to rent but where I live its not cheap by any means.

My mother just got her own apartment, she makes more than I do. I am 3 2 years old and I am embarrassed at what I make, I should be making more but the way the economy is right now its not going to happen and even if I did get a second job, the money would not be enough still. I looked into that already. I have been asking friends and even family if they had a room to rent.

My cousin who is a lawyer, helped me yesterday to the best that he can, however he is in the military and is shipping out for 9 months. They have already issued a judgement and I must write a letter to object within 10 days and then appear in court. I got the number for Consumer Credit Consuling, but I am waiting for my cousin to get back to me about the letter I wrote. He also called this Debt agency and tried to talk with them but because he is shipping out they would not speak to him. He says not to worry, but I am worried. I don't have a place to live, if I at least had that, THEN I would not be as stressed as I am right now. Not to mention last October I was rushed to the ER and have THAT ER visit that I am paying off because I was unemployed I did not have insurance.

My cousin told me not to declare bankruptcy yet. He offered for me to stay with his family while he is away, BUT he lives in DC and well my job is here, I don't know what to do. There is not a way to be transferred down there so I started looking but so far nothing. I sent a few resume's but it took me over a year to find this job and it was with the same company that had to lay me off. I am not hiding, I am just very scared of what is going to happen.

Okay OP...I had to make myself stop & breathe here before I could go on, stress is stress and everybody deals with it differently so I really am not judging you, I promise...BUT there's an old saying that goes something like this "If everyone threw their problems in to the street I would run to go and grab mine " You don't have children I gather and no one to take care of but yourself, no pets, etc. I find it hard to believe that a room to rent would be out of your financial grasp, for goodness sakes sleep on Mom's floor if you have too..someday she may need you to take care of here & then you can pay it forward...I just wish people would give all the facts when asking for advice. Foreclosing on your home would be a very devestating thing that I truly pray you never have to face ...God Bless

 

[Mickeyistheman]

This is MY home and I have been living here since I was unemployed, also helping out my family while my brother was in Iraq. My mother chose to let me how can I say this nicely about her....do what I have to so that I can survive. I am not able to sleep on her couch, she does not have one, she has a one bedroom apt with a bed that is the extent of her furniture by her choice, she can't afford more right now. She is also getting divorced from my stepfather so her money is going into that.

I have always helped my family and now when I need it, there is no one. I live in Bergen County and rents are NOT cheap by any means. Also just so everyone also knows my take home pay per month is $1600. Thats it. For a full time job which is my career, its not just a job for me so how upsetting is that, when several years ago I was making $45,000 and now this is where I am. It's embarassing and as for getting a second job, I have tried that and if I have a customer that comes in at 5:55pm, I have to help them so if my second job start time is at 630pm or well, gotta call them and tell them I am not coming. It is in my contract. So its not that I have not tried but everything is coming down on me at once and its very difficult especially when my immediate family could care less of my well being when I was there for them for support years ago.

 

[Luvchefmic]

We all have issues...in my family I am the "giver" too...regardless, you lived in their home, yes I understand you saying its been your home (I'm talking legally, NOT your foreclosure) a quick internet search for Bergen County NJ rooms to rent and avg monthly is about 500-600 per month

Would things be tight of course BUT technically you have known about this since last August ...you know a prev poster gave a link (when we didn't have all the facts) called wish for a hero. Well I must admit I went there because we could honestly use some help too. After reading some of those stories, especially about sick kids I was grateful that I am so blessed....just need to change your thinking, things could always be worse

 

[bettymae1121]

When does your cousin the lawyer ship out? If it's in the next few weeks there won't be much he can help you with, these things can take a while to play out. Have him look at the letter and your objection to the judgement, but based on what you posted, I think BK is your best bet. It wipes your debts clean (if you do a chapter 7) and then you'll have your full $1600 a month take home to help you make it. I know you don't want to do it, but you've done your best to hang on and it's just not working anymore. If the judgement sticks and if the garnishment doesn't leave you enough to survive, BK is going to be your ONLY option. It's best to sit down and get your ducks in a row NOW rather than wait. If you get the judgement lifted, you can always decide not to file, but if you get stuck with it then you can jump on that BK right away.

Yes, as other's have stated, it could be worse, but right now - to you - that doesn't matter because it seems like your world is ending. It's okay to feel upset and it's okay to feel stressed. But do your best to put that negative energy into something positive, like researching your options on the boards we've all listed earlier, and looking into a new living situation. I'm the type that if I have heavy stress over something, I tend to freeze up. I can't make a decission and am terrified to even think about it. But I find that once I force myself to start being pro-active about whatever it is, that I start to overcome my fears, because what I learn often helps me figure out my best option. The fear of the un-known is almost always worse than the fear of the known.

 

[Funball]

It's not that I can't pay, I can and have been and I am willing to continue to pay, now they want more. Everytime when I called to make my payment they were nice as was I, now all of a sudden the tables turned and they are nasty and want more than double what I have been paying.

ok i think that if you wrote them a letter and also asked in that letter why they decided to charge you more, i think legaly they have to tell you. they can't just charge you and not tell you why.. keep track of everything they do and say to you, cuase one false move on there part and if you are in court that will make them look really bad. keep all documents and papers and when you send them a letter, make sure you certify it, so that when they sign the little green postcard size paper it comes back to you and you know that they recieved your letter.

 

[PrincessBelle09]

OP, I am so sorry for what you're going through. The only advice I ever have to give anyone who is going through a tough time financially is to listen to Dave Ramsey. His website is http://www.daveyramsey.com. Take a deep breath, stay calm, and read. Lots of people have been in similar situations and have gotten through it using Dave's plan. It sounds like life is going to be a little ugly for you for a while, but you will be fine! Best of luck and I will be praying for you!!!

 

[laracroft]

So sorry OP for your problems. I understand that financial problems are very stressful. I am going through a few myself. Hang in there and check into a few of the recommended sites. Be careful about letting the stress get to you. I am on HBP meds now because I let stress get to me.

 

[Micca]

You know that phrase "My luck ran out"? I think that applies to bad luck too.
Sounds to me like you're out of bad luck for now. Things can/will get better.

 

[*pixie*dust*]

Hang in there. It may be hard to see now, but these hardships may actually turn into a great opportunity for you. Out of this adversity could come an opportunity that will be life changing. Maybe a new job, new location or new other opportunity.

 

[Mickeyistheman]

Everyone has been really great and thank you all very much.

My cousin has been great and I am trying to find the positive in this. I was off yesterday and now that I am back I feel a little better but that is just because I am not thinking about it.

My cousin also told me that claiming bankrupcty is not as easy as I think (especially for my situation) so we are looking at different outlets right now.

I may be making a big move and I just have to embrace it. I started reading "Who moved my Cheese" and its been helping.

A very good friend of mine, knows that I love the movies and have not gone in forever and knew I was very upset so they dropped off a Movie Gift card for me and it meant more than she will ever know! I got dressed and went to see Get Him to the Greek. It made me laugh for a bit so that was a good thing. Then I went home refreshed, I put on my Disney CD's and started packing some boxes. One day at a time.