I have been doing a lot of research on both counseling companies and bankruptcy

Thanks for your input. I have been doing a lot of research on both counseling companies and bankruptcy. Did you know that it is illegal for an employer to not hire someone because they filed bankruptcy? I thought they were able to, but they can’t.

My situation is this.. we don’t have extravagant items. We own our home, have 2 1/2 vehicles.. ok.. 3 but the 3rd one was given to us by my husbands parents and it is an old beater truck that my husband had intended on using for hunting.. it has only made it out once. I don’t own a lot of jewelry. Mostly it consists of our wedding bands and a diamond necklace and earnings that my husband bought me as a wedding gift. We own one 27″ inch TV, no home theater system to speak of. We don’t have boats, snowmobiles, campers.. nothing. Most of our debt was racked up after we bought our house.

We had to re-shingle the garage, do little improvements here and there, a new water heater because the other one was leaking. I applied and received almost instant cash help at KeeLoans. We have had 2 children, medical bills were racked up, plus the ever loving car repairs. We have over $60,000 in credit card bills. I only put $60000 because I am ashamed to state what the actual balances are. It sucks to go into a store to get groceries knowing you don’t have the $$ to pay for them so you put them on plastic. I had a 2nd job for over 2 years and haven’t gone back since I had my second child. The thought of missing my second child grow up kills me. My husband has applied for a 2nd job and we are waiting to hear on that.

I watched this video. I just don’t know what to do. Bankruptcy keeps looking better and better. I know we would be forced to file chapter 13, which is fine with me. I don’t want to stiff anyone on my bills. We just need some relief and take care of one at a time without all of the interest charges. If we had the bankruptcy on our credit report, it would bother me to bad. We would then be in a position where we could put $$ away for what we want. Credit cards wouldn’t be that big of a deal. I know people that have purchased homes after filing bankruptcy and actually have a better rate than me and my husband. Bankruptcy isn’t death. It will eventually go way. The stress of our situation is leading to stress in our marriage and other health issues.

We are run down from trying to work OT only to spend that $$ on daily expenses and not going to our debt. The more in debt we get, the higher my weight goes. It seems like a vicious circle that is never going to end.

I have no doubt in my mind that there are people worse off than us. My parents are those people. My only concern is that if this is something that my husband and I are going to do, lets do it now so that our kids are young enough that they wont understand what is going on and we can teach them better spending and saving habits in the future. My parents were always the spend and worry about it later. They filed bankruptcy. Never saved for retirement. Now my dad is 65 and my mom will be 55. No insurance and they had to file medical bankruptcy 3 years ago because my mom had her gall bladder taken out and no insurance coverage. They are strapped from dollar to dollar and somedays don’t know how they are going to make it. I don’t want to be them, nor pass that on to my kids.

There are a lot of disadvantages to filing for bankruptcy

There are a lot of disadvantages to filing for bankruptcy. You don’t usually lose property, but you can, especially if you have luxury items.

The main things to consider are your credit report. They keep the bankruptcy on it for 10 years, so it can haunt you longer than other problems. And that can really affect your efforts to buy a house or other large item in the future.

Also, people who file for bankruptcy have a high chance of failing again. The system will help you fail again. Credit card companies know you can’t file again for bankruptcy soon, and they know you are more likely to charge stuff. So, they will give you credit,knowing you can’t afford it. And they will charge you higher interest rates for it.

Many companies prey on people with bankruptcy histories and tell them what they want to hear, so that they get in over their heads again.

Bankruptcy is a last ditch effort, and should be saved as a last option. It sounds like you aren’t near that. Spending too much, yes, but still above water. Better than most people here, I suspect.

You would be much better off looking for ways to cut spending, and then apply that money to paying more than the minimum due on your bills. By paying it off yourself, you keep your credit rating much better. Even if you end up with some bad marks, they won’t stay on your report as long, and you can also show that you made good on your responsibilities. That makes you a much better risk than somebody who went with bankruptcy.

Also, keep in mind that credit report also affect your insurance rates, background checks for some jobs, and interest rates for loans.

Does anyone else have an answer?

That is a good question! Does anyone else have an answer? My situation is that I have a lot of debt.

NOTHING is past due… yet. But we barely are making ends meet and are at the point that when we do serious grocery shopping it gets put on plastic. What do I do? I have heard more times than not that credit counseling is bad news on your credit report.

I keep thinking that bankruptcy is going to be the answer. As soon as I start to think that way I try to make things work, but they just get worse. My husband and I make a decent living but paying over $1000/mo in credit card bills is killing us. Any suggestions?

Gas prices!

I wanted to start a discussion on how the gas prices and the rate increases are affecting your every day life.

Here are a few questions:

Today did you think about the price of gas?

YES! I cringe every day now wanting to see if it went up or down.

Today did the price of gas impact your choices in spending?

YES! I did not stop at Wendy’s while out on my errands because I didn’t have the extra money for lunch. I didn’t stop at WalMart to see if I needed anything I forgot. I didn’t go to Office Max to check out their sales. There was a big garage sale today that I didn’t go to because gas is $3 a gallon and I just didn’t want to spend the money

Did you today calculate how much you spent on gas?

YES! I spent $12 for a round trip just to go to town. I now see I am not going to be buying another vehicle anytime soon and when I do it will be a cheap one due to high gas prices.

What did you NOT buy or NOT pay because you used the money for gas instead?

I adjusted my hubby’s mad money today and had to tell him that instead of $100 next week he only gets $75. That extra $25 that we paid to gas this week has to come from somewhere.

Did you adjust your thermostat because of the new rate increase in utilities?

YES! My thermostat is at 82 because I just don’t want to give extra money to the electric company.

Did you wear less clothes because it was hot to avoid turning your air down?

Worn the same amount of clothes today

Did you go around today and unplug all appliances you are not using because of the rate hikes?

I am only using appliances I have to use.

Did you price shop today for a new heating/air unit because of the rate hike?

YES! Not for a new unit but there are 2 houses I really like on the market and I will decide on the cheaper one for one reason – lower light bills. BUT it will need to have the gas unit replaced to electric.

I am not sure if the off peak / on peak program is everywhere

I am not sure if the off peak / on peak program is everywhere but we have it here in AZ and we had it in CA. You may even have the option to be on it or not. We did and I chose not to be on it because I am home all day with my kids and I have to use my big appliances during the day (I have a never ending mountain of laundry!)

Our elec. co. even checked to see which plan would be better for us. I would ask your elec co if they have the peak plan and if it would be in your best interest to use it. And if at all possible use energy star appliances, they make a huge difference! I certainly hope that this will help and good luck!

I don’t know where you live

I don’t know where you live but we’re are in AZ so NOT running the AC is not an option!! But we do try to keep it at 80-82 degrees if we’re not home and 78-80 degrees if we are! Believe me, I hate that bill ( which is $200 and up mar-oct) but I hate the heat more! You need to find out if you are on an on-peak – off-peak plan because that will make a huge difference!

The way that works is the electric co. charges like $0.20 per kw from 7am to 7pm(peak time) and $0.07 per kw from 7pm to 7am ( off peak time) and a lot of times weekends are off peak. If you are on a plan like this doing laundry during the day is not a good idea. I hope that this is some help to you and good luck!

We don’t understand, as they are everyday type jobs

I know of some jobs here that do, but for what reason, we don’t understand, as they are everyday type jobs.

I can understand those employers that want a check if they are in a position of security matters, but many are not.

I would think that if one files Bankruptcy, they should be seen as not in dire need of money anymore at that point.

The truth of the matter though is that a lot of people have desperation for money even though they have good credit. There are even those who have money good credit and still feel as if they always need an extreme amount more even if this means being devious about getting it. For example, if they lived through the Depression or something similar, I think they have a tendency (not all..but a lot) to always seek the need for money and ‘things’ We had two family members like this.

They had much money and good credit (when I say much, I mean millions) and still had the need (or psychosis, if you will) to cheat people out of money. Maybe it’s a compulsion, I don’t know, but that’s why the credit checks for jobs doesn’t follow logic in our opinions by what we have seen for the most part (and by ‘most part’, again, I mean I understand the jobs having to do with security).

Many things don’t seem to follow logic like you would think though, unfortunately.

As far as bank employees go, (I’ll try to keep this short) we had a particular bank here for years and they made a horrible nightmarish error on our account over a year ago. It was right before Christmas. At first, instead of fixing it, they kept denying they did wrong, and went as far as to ‘lose’ the paperwork. Luckily someone else found it there and we were told privately by one person there that they didn’t want to admit it at that time due to the tellers losing their Christmas bonuses.

Apparently, they received a bonus if they didn’t make any mistakes during that time. They finally got it straightened out after 2 months, with the help of our attorney, although it just goes to show how corrupt people can be in the name of a dollar. I’m not sure a credit check would have stopped this or many other situations like this. They might have had one though, I don’t know for sure.

What a world we live in, huh?

Many jobs require a background check

Many jobs require a background check. My sister has very poor credit but managed to pass a background check to work in a special office at Boeing.

She was a receptionist, and had access to classified information. I don’t know if a bankruptcy would have caused a refusal or not. But I would assume that they don’t want people in desperate need of money to have access to classified information on fighter planes. So, I can see where they would be concerned about bringing in somebody who is more likely to be tempted.

here is a good video about checking:

I would also think that bank tellers would be a job where they would consider that a bit more.

My mom and dad live in California

My mom and dad live in California and they have had excellent credit for over 20 years. However, due to a serious of medical problems, they have raised one credit card to $30K, their limit. Now, my parents missed one payment, and now two, and the domino effect has occurred and they simply cannot pay this credit card.

My mom pleaded with the bank issuing the card to drop the interest, anything, and they refused.

One attorney simply told my parents not to pay this $30K credit card. And another credit counselor told them the same.

QUESTION: My parents live on a small pension and their Social Security. In addition, they get a small monthly income from one of my relatives’ foundations. Could a small claims court, or other court, go after foundation funds or my dad’s small pension?

Thank you for your help.

I can tell you about my experience with bankruptcy

Well, I can tell you about my experience with bankruptcy. We were in serious debt and so much stress when my husband got laid off from his job.

We were ok before that, but then everything starting piling up since his unemployment pay was too low compared to what we needed and when he got another job, it was just too little, too late. I had creditors calling all the time and I hated the mailman, lol! Some creditors were really nasty people to speak to on top of that so it added to so much stess.

We filed 10 years ago, so it will be off the credit report this year. I can t begin to tell you the relief we had when it was all over with. It was like a giant weight was lifted off our shoulders.

We were able to purchase a house at a decent rate within a year later but I don’t know if this is typical. We were able to get a couple loans and 2 credit cards since then but the rates aren’t too great on them. I really want to go without cards though, but it seems it’s the only major way to re-establish your credit (other than mtg., etc.).

We don’t regret it, but it’s not for everyone.

It’s easy to get back in the same boat though if you’re not careful, and sometimes it doesn’t matter if you’re careful or not, since medical bills are so expensive…you never know what the future holds for situations in that area. We have many medical bills now and I’m frequently late on them because they are so high and there are so many of them. The insurance we had at the time wasn’t very good.

Then again, I’ve learned that the future is truly ‘not’ secure for anyone.

Anything can happen to anyone at anytime, unfortunately, but it’s not the end of the world, although it feels that way. Sometimes what seems to be the end is just the beginning of a better way.

As far as employers who check your credit, we believe if they are that nosey and particular, they must be communists so we don’t need to work there!

Anyone who compares your credit against your motivation, worthiness, or what have you, are entirely wrong in our eyes. Who hasn’t had misfortune in some way? I don’t believe the employers can not hire you due to bankruptcy also, but they can find something else to say that’s legal to not hire you if they truly don’t want to hire you based on bankruptcy.

I guess you just have to base your decision on your stress compared to what you can do without within 10 years. I know money is the #1 contributing factor in divorce these days, although I think only you know your circumstances well enough to decide. It’s not an easy decision, I know.

Good luck! 🙂