Help need advice!!!!!!!!!!!!!!!

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

Welcome to my world though a baby would be much better for me than an ex wife. Most bankruptcy attorneys take payments and your bankruptcy will stop actions on your home. I'm likely going to file, I've run out of choices. The bankruptcy is not really that expensive. Get the Bankruptcy goiing if you have no other options.

I'm so sorry for you and your wife. I can't begin to imagine what is the best way to get out of this mess. I find it hard to see how buying a new car at a high interest rate could help though - what were the steps involved in this decision?

Obviously there must have been a reason, I just can't see it from what you've written.

Maybe this is a situation where banckrutcy might be a good idea - look into it - online, at this website, cheaply anyway.

I wish you and yours good fortune. If I was a Christian, I'd pray for you, but I'm not. You have my best wishes though, for what that's worth.

I bought a new car right before my crash as I knew that we needed transportation to work and later after my crash the rates would kill us. It was an inexpensive new car but where we live reliable transportation is a necessity. Sounds like this writer lost his car. Sounds like a logical need to me unless there is public transportation where he lives.

I am so sorry to read about your distress. It helps to face things as they really are and admit you can't solve them without help. My suggestion is to find someone who understands your situation to talk to. Make sure that person can give you the right advice. Often churches, neighbourhood organisations or credit unions have such people who have seen it all and can help.

I'm so sorry to hear about your situation.  We're in debt a bit ourselves to the tune of ... well I'm not sure sure I should go into that yet. Suffice it to say when we're able to make payments, (and there was a time we couldn't) we do. We still get at least three calls close to the end of the month. They urge us to call imediately. My husband is better at handling them . The payments are always made at the same time of the month and the same amount. No matter how much they urge us to make the earlier. We do what we can afford. My point in telling you this is that we all go through hard times and yes you need to find someone you can trust to truly go to bat for you. Like the concolidation company was supposed to. Can you hold them to anything in their contract. Can they be held accountable for the promises they made to you? Do you have it in writing anywhere? You need a legal advocate.

If I read your story correctly, you have a lien against the house and a wage garnishment. Both actions require court action before either can be put in force. At least in this country. I'm not sure about your homeland.

Letters from creditors can be handled in a number of ways. The best is to send them a cease and desist letter. This will stop the letters but won't cure the debt. You can also stop the phone calls with the same letter as it serves to be your notice to them to stop contacting you.

Bankruptcy won't cure any of the above problems as they are court ordered and not removable through bankruptcy. Bankruptcy may remove your other debt obligations so it may be in your best interest to at least talk to legal aid in your county. They are free to speak with but don't represent you in court.

Another option is to become the aggressor and sue the collectors in small claims court for violations of the FDCPA. Since you didn't say anything specific, I don't know what violations they have committed but I bet they have violated your statutorily protected rights.

As for your mortgage payment, contact the loss mitigation department of your lender and ask for a work out. You want a lower rate of interest and a fixed mortgage. This should help you.

You bought a new car with a high interest rate loan so no one would take it. I don't understand the logic. The lender doesn't care how high or low the interest rate is on the loan. If you don't make the payments, they repossess it. Sounds like you should have bought a beater instead. Nobody would take that.

As for the breakdown, I wouldn't waste my time on that if I were you since you are only talking about possessions. If you lose everything, you can start over again and put all of your new possessions in trust. Then you will be virtually judgment proof, assuming you pay for them.

Having been absolutely broke with only a car to call home, I can say it ain't as bad as it seems. I won't pontificate with any kind of platitudes or hyperbole but I'll say if you keep yourself together and use your head you will recover.