Financial Advice that I Did Not Want to Hear

Posted on January 20, 2008
Filed Under Uncategorized |

Last week my financial advisor recommended that I consider and look into declaring bankruptcy. They don’t think that I will be able to climb out of this hole unless I do. It makes me sad to think about it. I feel like I am giving up and that doesn’t come easy for me but I guess that maybe I should give it some serious thought as I can’t see any other way and if the credit card companies take legal action and garnish what little income I have right now, I won’t be able to afford to eat or buy gas to go to work.

Even with the increase in business this week and assuming that it will continue for a few weeks, I am not quite able to pay the things like fuel oil, mortgage and groceries. If it continues to increase, I am looking at a few months to be able to actually start making regular payments again.

If I have not been posting as much as usual, it’s because I am struggling with this decision and feel like whatever I write is not so much educational as whining. I hate to whine.

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Comments

4 Responses to “Financial Advice that I Did Not Want to Hear”

Bouncing Back on January 23rd, 2008 7:17 pm

As someone who has just filed and gone through bankruptcy, I can truly say, I hear your pain. You are not whining, you are trying to make a decision.

First off, you may want to try something like Consumer Credit Counseling Services. It’s a non for profit agency that helps folks out. They can sometimes help with negotiating repayment plans with your creditors (you can’t use your credit cards, but you can get reduced/lowered interest rates, etc). Your financial advisor can’t do that for you, CCCS might be able to. Look in your local phone book and schedule an appointment ASAP.

I can tell you from experience, Bankruptcy is not fun, easy or to be gone into lightly. Plus you need to figure out are your declaring personal bankruptcy (a Chapter 7 or 13) or a business bankruptcy (Chapter 11). CCCS can look at your situation and help you if they can. I wish I had found them before I had to file my Bankruptcy.

I had to face the reality of Bankruptcy after things just got out of hand with my fiscal life (can you say Universal Default and interest rates of 30% on cards I was easily paying before). I was served a court summons for repayment on a credit card that would not accept a repayment plan from me. That was one harsh wake up call.

I have managed to survive the process, my credit rating is wrecked, I ate too much, I drank too much, and have extra grey hair on my head that might not be here if I was not sooo stressed.

Yup, these folks call you first thing in the morning, all day and at your work too if you let them. They are quite persisent.

I would strongly reccommend you get a second opinion (like CCCS) and see what all your options are. I’ll post a link to your e-bay store on my web page.

Good luck, we are here for you.

BB
CindyS on January 23rd, 2008 7:52 pm

Thanks for your support, BB. I will look into CCCS but I don’t think there is much they can do since I can’t afford to pay for the essentials… home, heat, groceries, etc.

Yup, my interest rates are in the 30% range plus late charges and fees that are easily double what my minimum payment was. Sigh. After 5 years without missing a payment, it is killing me.

I can’t afford to drink at all or eat too much. I’ve actually lost about 25 lbs over the last few months. Now the grey hair? There might be a few more but I am still considering it the silver lining.
Anonymous on February 8th, 2008 6:39 pm

Hi…Been there, done that, know exactly what you’re going through. I declared bankruptcy back in 2002 and it truly was the best financial move I could have made as 1) I wasn’t making enough for CCCS to truly be effective for me and 2)The folks I owed money to (mostly credit card companies) weren’t interested in working with me to find a workable solution. And I mean #2 exactly as written. These companies didn’t want to work with me and didn’t care that I filed bankruptcy so they would receive nothing.

The years since then I’ve learned to be a MUCH better money manager and can actually plan for purchases…well that is after I justify them that is. I have four credit cards on which I pay the balances every month, I have savings accounts, which i add to each and every week without excuses, to help tide me over in emergencies and plan for my future and my credit report numbers have increased by almost 300 points.

I may not be a very good consumer, according to the current American model, but I’m a much happier, organized person these days than I was before. I know I can weather a setback as I’m prepared financially. Don’t discount bankruptcy. It is a huge step but it exists for a reason…to give you a second chance. I was worth it and so are you.

Best of luck
Joel
CindyS on February 8th, 2008 6:46 pm

Hi Joel, Thanks for the support. I have spoken with an attorney and because I am the sole proprietor of a business, all the business assets would be subject to the bankruptcy. And I have too much equity in my house. Virginia only allows a $5000 homestead exemption. So if at some point, I have to file bankruptcy, I will lose everything including my source of income.

I am just going to have to muddle through this somehow.