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Drowning in debt - trying to avoid bankruptcy - help

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I have $42,000 credit card debts and $10,000 of medical bill that is due. Since I had been passing through a hard time, I took few payday loans. Now situation is even worse than worst. Continuous collection calls have made me tense. Payday lenders are threatening of wage garnishment. I have to pay a lump sum each month to my ex-wife that I cannot stop; otherwise she would be going to court. I have no other way out but bankruptcy. I know bankruptcy will ruin my credit, though it's already damaged enough. Can you suggest any alternative? I don't have any property as such. What should I do now? :?:


Welcome to the forums. Sorry to hear that the debts are getting you sick/tense. Have you ever considered joining a debt consolidation program. You can join on this site to get a free consultation, and they counselor will explain to you how each step works. Might I also add, that you can call the patient accounts department from each of the medical facilities you were at, and tell them "I cannot afford these bills. I need help. Is there help from an outside agency". Those words specifically are what usually need to be said for them to send you an application. I have worked for 2 different billing/patient accounts departments for 2 different hospitals, and they do have what's called a "charitable write-off".

Also, before deciding on bankruptcy, you really should listen to what the debt counselor can do for you. Sometimes they could eliminate all the interest fees/late fees, etc...and bring your payment down to small lump sum over a year plan.

Depending on how many payday loans you've taken out, you may want to work with each one, trying to pay off each loan every other payday. You were able to get qualified for that loan, so hopefully you can work one loan in every 2-3 weeks. They might even be willing to remove any NSF fees, or renewal fees if you're able to pay the next pay period.

Beware of wage garnishment. The wage garnishment payday lendors speak of is usually what they had in the loan agreement. This is a wage assignment that should of be on a seperate page from the document. This is totally voluntary and can be taken back at anytime. However, wage assignments are not valid unless you signed it in person. If it does get taken to court, and judge does declare a garsnishment to take place, they will only take 10% out, but no more than 25% of pay till the debt is paid.

Another thing you might want to consider on trying to save money while fixing your credit, is to speak with your ex-wife about another payment arrangement. Maybe (depending on how much you're paying now) going to court would be a better idea, so you would have proof of all your payments made to her.

I hope all works out well for you, and try not to stress too much. The holidays are right around the corner.


Sub: #1 posted on Wed, 11/23/2005 - 02:55

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