Debt $50000 aprox, State Illinois, Credit cards 8 Loans 2 credit score 350-400
Ok so here is my story: Things started to go bad financially back in 2003. My wife got made redundant and then she got pregnant (Pregnancy was good not bad she was planned). The problem nobody wanted to hire a pregnant woman. At the time we had about 8 credit cards and 1 personal loan.
Then we made a real big mistake because we were behind on credit card payments we re-morgadged the house with a adjustible rate morgage.
After this we kept borrowing more money and financed our 12 year old car.
After this our morgage went up by double and is now $1950 a month. This leaves us with no money to pay any of our still outstanding credit cards and personal loans. Then because I am British an old Personal loan from England was sold to a bank in the US and is now sending me letters. We have done debt negotiation and they told me they can reduce the amount owed on each account by 50-60%, well they lied they reduced 2 of them by about 12% plus at the time 6 out of 8 creditcards and 2 personal loans took me to court where I recieved no advice from the debt negotiation company on what to do. So now I am in Default with 6 collectors, and one has a lien against my house, another is just starting to wage garnish me, which I have to face my boss tomorrow on because he probably has the letter. I am trying to afford to save for a bankrupcy lawyer but it is going to take a long time now because of the wage garnish, hopefully I can afford the house still but I don't know. Anyway if anyone has advice I would appriciate it as I am close to a breakdown!!! This last thing I done was had my 12 year old car repossesed on purpose, then went out and bought a 1 year old car with a really high intrest rate so that nobody would take it.
Thanks in advice
I'm about 50,000 on unsecured debt and 160,000 between my mortgage and second. Settlement companies can do things for you but only if you have the amount per month they want to go to work. I waited out the creditors and collectors. They all want to settle now but one must have money even to settle. Bankruptcy is an only alternative for some and it really doesn't cost that much. Have you consulted with a bankruptcy attorney yet? Most take payments.
One thing I have found over the last year. I've had the phone calls and threatening letters for over a year now which were very stressful and scary. I've been given ultimatums. Now ? I'm getting softer letters with settlement offers. I guess the old saying rings true...........you can't squeeze blood out of a turnip. I'll keep the readers posted but as of right now some of my creditors are offering settlements. The bankruptcy threat and disclosing your budget and debt seems to be working in my case.............so far.
