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money problems

So i just got a civil summons about a credit card I had a long time ago. I knew about it, but the min. payment was always to stinkin high. Well now I owe them $5000, and have to make arrangements in 20 days. My question is, my husband and I total have probably $15,000 that we owe. This includes doctor bills and student loans, but doesnt include our car and truck, which would add another $25,000 onto that. Should we file bankruptcy for the $15000. Can you file for medical and student loans?? Or should we get rid of the truck which is $400/month and use that to pay these off?? If we did that how do we "get rid of" the truck. Should we just stop making payments, or call them and tell them to come get it. I know we wont be able to sell it for the payoff in this economy. We can live with one car for now til this gets taken care of. I just feel like bankruptcy might be the way to go. Please help?? So stressed right now!

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Anonymous

Asked by Anonymous at 10:58 AM on May. 20, 2009 in Money & Work

Answers (11)
  • I just don't get it. You had a bill you just didnt' pay. Just because.
    Just unbelievable. You didn't mind doing the shopping though that created the bill did you.
    Anonymous

    Answer by Anonymous at 11:14 AM on May. 20, 2009

  • I've been where you are at. Early on, the difference of what I didn't make (as compared to the cost of living) came from credit cards. I had to negotiate larger payments. For smaller payments, I let those old dogs lie and let their statutes of limitations run out. (Just remember that payments renews contracts on those old dogs.) Life was that hard.

    Here's a link that I hope helps, How to negotiate a payment plan
    BlueSaphire

    Answer by BlueSaphire at 11:35 AM on May. 20, 2009

  • If they get a judgement against you then you will have to make pymts. I thin 15, 000 is an amount that you can pay off with regular payments. Personally I would not want to file bankrupcy over that amount. You can try to sell the truck or you can drastically cut spending, sell everything you can and cut your grocery bill. Do any extra odd jobs...look up Dave Ramesy and get out from that debt. You won't learn anything unless you get yourself out of the pit you dug! Work at it, you can do it! Chip away at it $100,$10, $5 at a time. You owe this money, nobody else should have to pay for your stuff.
    ria7

    Answer by ria7 at 11:59 AM on May. 20, 2009

  • Well I was looking for help, not people making a judgement of me without know the situation. Yes I had a credit card bill that I did not pay. I really didn't think that made me a bad person. I had some hard times while in college, and it was either pay rent and eat, or pay the credit card bill. And the whole bill is not things I bought, most of it is late payments and interest. I'm trying to work at getting things resolved, but unlike some people I don't just have extra money sitting in my pocket. Unless you have a helpful answer, please keeping the bashing to yourself!!!!
    Anonymous

    Answer by Anonymous at 1:07 PM on May. 20, 2009

  • I am in your situation....I cannot believe people and their judgmental ways.......We have alot of credit card debt and tax debt due to my husbands business which he has just sold but we are still in a big hole...Our only option at this point is to file banktuptcy which I don't want to do but we have no choice. It doesn't mean that we are bad people or we are losers. We have to make a choice every week on food for our family or paying bills......we are trying to stay above water and we are not having any luck. If you want to vent you can count on me NOT judging you. and you can pm me I will listen and not judge!!!
    baby4at38

    Answer by baby4at38 at 1:45 PM on May. 20, 2009

  • I honestly was not trying ot be judgemental towards you. My ex husband left me with alot of debt and I have had to scrimp and pay. He is not paying me child support and Im going to have to work a second job on saturdays and my dd will have to go with me so I can pay the bills. That being said I still think it is your responsibility to pay the debt off. You can go to court without a lawyer and try to get the amount reduced and plan on paying an extra portion each month. Dave Ramesy is an excellent resource and can give you advice and encouragement to get out of debt and live freely without stress of bills at night.
    ria7

    Answer by ria7 at 2:07 PM on May. 20, 2009

  • There are two different types of bankrupty. I can't get the numbers right but one you don't pay anything back at all and the other you make payments on the debt. Regardless of how you got in the situation you are here. I would talk to a bankruptcy lawyer about your situation. Consultations are usually free and they can tell you what you should do. I think it would definitely be worth talking to one whether you decide to file for it or not. Good Luck!
    lalli_lalli

    Answer by lalli_lalli at 2:09 PM on May. 20, 2009

  • Just ignore all those people with rude comments. Obviously they havn't hit hard times YET. They think they are too good for bad things to happen to them. And lots of people do irresponsible things when they are young thinking they can pay things off, and it just snowballs and never happens. We have to learn fromour mistakes. My advice is to not let the truck go back. I had to let a vehicle go back. I voluntarily called them and did so. THey will send you a letter trying to get you to pay what is owed after they sale the vehicle for nothing. But you can't get blood from a turnip. If i couldn;t afford the payment like i can pay the balance. But doing that makes if very hard to get another one. And if you go to court they will prob faver the cc company and tell you to pay payments. If you default they can get a judgement. Which means if you sale something, the credit card company gets there money first. cont..
    Anonymous

    Answer by Anonymous at 3:53 PM on May. 20, 2009

  • cont..where i work we just had to do that on someone. In court they ordered her to pay payments saying if she iddn't pay then we would be awarded a judgement. Which means if she sales her house or something then we get out money. If she defaults it could be years before we get out money. Depending on your state and the laws, prob nothing like jail time. And for the record i am in the same situation. I have maxed out credit cards, that just keep accruing fees and late charges and the companies are unwilling to stop them so they can just take what they can get when i can pay it.
    Anonymous

    Answer by Anonymous at 3:55 PM on May. 20, 2009

  • Would getting in touch with consumer credit counseling service work (the non profit one)? I understand they're able to negotiate with cc companies about late fees and such. I think they'll want a written budget to work from. That's helpful anyway for your own info. Your idea of one car for a while makes alot of sense. That's $400 more a month to put towards debt. after you pay the difference between the truck's selling price and what you still owe. I think student loans are exempt from bankruptcy. Someone correct me on that one. Have you spoken to the doctor's office about making payments? We had really hefty bills early on with little income and the different medical people were willing to reduce the monthly payments as long as we paid consistantly. A student loan at the same time. It was great to finally be out from under when we were done and it taught us to work (and scrimp) together. Hope these ideas help.
    oddfox

    Answer by oddfox at 9:15 PM on May. 20, 2009

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