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What to do?

Date: Fri, 04/03/2009 - 10:02

Submitted by anonymous
on Fri, 04/03/2009 - 10:02

Posts: 202330 Credits: [Donate]

Total Replies: 10


I have been reading for 2 days trying to figure out what to do. Great information, but very confusing! At the end of 2007 my husband lost his job and although he found a job fairly quickly, it was a job making about 11,000 less than before. During his 90 probationary period without insurance, I got terribly ill and had to see several doctors and be hospitalized. I was out of work for 6 months and we had then accumulated a ton of medical bills. During 2008, we used our credit cards to pay those bills, and to supplement our income just trying to keep up. Flash forward to 2009 and we are in to our credit cards for about 74,000 and remaining medical bills of about 6000.

I'm seriously considering bankruptcy at this point because I have contacted several debt management companies, but their payments aren't much less than what we're paying now. This month is the first month that we are letting our bills go late so nothing is more than 30 days late at this point. We are unable to refinance our mortgage because of our debt to income ratio so we are waiting to see if we can qualify for the home affordable modification program to lower our mortgage payment but in the meantime, I'm a mess!! This just goes against everything I'm about, but we just don't have the money. We did not live frivously or spend unnecessarily, we were just trying to do the right thing and survive. Now we're dealing with the fallout.

Any help would be greatly appreciated!


Hi,

I would file bankruptcy. Your debt is high but the history is still pretty clean so now is the time to act. The number 1 reason people are forced to file for bankruptcy is due to overwhelming medical bills. You did not ask for that situation to unfold as it did, but because it did precisely that, and in such a narrow window at that, do not feel bad or embarrassed to avail yourself of one of the protections granted us as citizens: discharge of debt in Bankruptcy - so you can rebuild your life.

And congratulations of his finding another job in this poor market!


lrhall41

Submitted by Chrys Henderson on Mon, 04/06/2009 - 22:01

( Posts: 2538 | Credits: )


Drowning,
I myself have been through Bankruptcy back about 6 to 7 years ago, which the laws have changed some. But its not as bad as some people think, at least not for us anyway. And it lifted a huge burden off our shoulders. There is life after Bankruptcy, its a hard decision to make, and no its not right for everyone. But it not the end of the world like some make it out to be. I wish you the best of luck and hope turns out good for you.


lrhall41

Submitted by on Tue, 04/07/2009 - 09:59

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i agree with everyone else bk is your option. Dont be imbarrest or ashamed. you need it and that is why they have it. you were not out just free shopping. You have a good reason as to why this happened to you and you now need to act apon it. the more juggling and balancing you are doing is just prolonging the inevitable. Just do it and start getting your life back on track.


lrhall41

Submitted by love_my_things on Tue, 04/07/2009 - 10:48

( Posts: 1434 | Credits: )


Thanks so much for all of your encouraging words. Now, I'm trying to muster up the strength to make that call although, I have some peace in knowing it's pretty much my only option.

I'll keep everyone posted on our progress and I'm sure I'll have many questions!


lrhall41

Submitted by on Sun, 04/12/2009 - 18:02

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i agree with jack, frankly look at it as a new beginning. No matter what your options would have been, you would have needed to do something wich no matter what would effect your credit (even if you done nothing) so you mise well just get it done and move on. you can repair your score, you can repair your life and spending habits and learn from your mistakes.


lrhall41

Submitted by love_my_things on Tue, 04/14/2009 - 06:44

( Posts: 1434 | Credits: )


I am being audited from IRS, first time. I've filed for taxes in time, but IRS wants to examine more receipts for the deductions that I have taken.
I don't have most of the receipts due to a flood that I had in my basement, I can provide maybe 60% of the receipts....will IRS ask for a proof of the flooding?
I am in a lot of debt and I am considering bk chapter 13, should I mention this to my EnrolledAgent who will represent me to IRS? Would this make any difference or would it make things worse? If IRS says that I owe them money, what rules do apply? Are they flexible in receiving payments from me over a period of time? I heard that they can take payments for up to 3 years. If yes, is this per tax year, lets say if they audit me for tax year 2006, do I have 3 years to pay for this year's taxes? What about if they decide to audit me for 2007 as well? Do I have 3 other years to pay?
Of course BK will not cover the IRS debt because this is recent, but it will count the payments toward the meanings test.
Any help, ideas or sharing experiences will be appreciated.

thx.


lrhall41

Submitted by on Mon, 04/20/2009 - 18:41

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