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We may lose the car! (debt issues)

post #1 of 8
Thread Starter 
Ok so here's the deal..

A few years ago I was "stupid" and got 8 cc's! And of course since we didn't have money for things like bills, clothes,medical visits, and sometimes food...I ended up max'ing the cards out and couldn't afford to pay them. So now I have between those cards and some medical bills owing a little under $10,000.00! Recently one of the cc company decided to sue me so I went to legal aid and the lawyer said if I wasn't going to run into any money soon then I could do one of two things. Either do nothing..and get rid of my car because the credit people would probably put a lien on my '97 owned car OR go bankrupt. But he said that he thought I was a little young to go bankrupt and "he" thought it wasn't "that" much money. Well...I have only had a car for about three years now (used the bus and walked before), but someone gave me the car and it seems like impossible now without the car. In the morning I drive my son to school then myself to work then my sister (who lives with me) to work then pick everybody up. Two of my boys have medical issues and have appointments all the time (some far). Not to mention our washer broke a few months ago and we've been having to go to the laundrymat all the time.
Also we just lost a third of our income this month. My son was recieving SSI for 8 1/2 yrs and they just decided he's not eligible and stopped the check.
THough I'm in the process of appealing that because as far as I'm concerned he's medical condition hasn't changed and I think there wrong. We barely have enough money and if I work more then my housing assistance that we get will just raise my rent which would be pointless and I'd be lossing time with my baby. I just don't know anymore! For those of you who have been in a similar debt situation...what did you do? Or maybe one of you is a lawyer (or nows one) Is that true that they'll put a lien on my car and if so isn't there anything I can do to stop it? THanks.....



RayRay
post #2 of 8
I'm giving you advice based on what I've learned through my past stuff like this....not credit card, but still small debt loans, etc. Legal aid doesn't like filing bankruptcy for anything under $10,000. As long as you send the companies something each month (even if it's only $1), it shows an ability to try to pay the debt and puts you in better light...even if it isn't the best light. Even if they sued you, if you started payments with them (calling their lawyer or them personally), they may still work with you. They'd probably garnish your wages before they'd take your car, and you really wouldn't want that. They can't refuse your money. So if you sent a payment in for $10 and they sent it back to you, that is considered refusal of payment money and that considers the debt void. This rarely happens, but...you will get callers that try to tell you you need to pay more than the few dollars you're paying.
The thing with credit cards is, I don't know if the interest continues building up while you're owing, if that's the case, you'd need a debt consolidation company to stop the interest from growing or at least give you a better interest rate and some type of pay back plan. Otherwise, you're paying a small amount each month that isn't lowering anything with all that added interest. Unless you can call the credit card companies and find out if the amount owed isn't adding interest, in which case, you'd just start paying on it.

I know you stated your finances are tight, etc. However, the only way to get out of this is to file bankruptcy or pay it back. Even the small amount would be some show of good faith.

Hope this helps somehow,
Be Blessed,
April
www.connectingconnections.com
post #3 of 8
Thread Starter 
Thanks for your reply April.....

The lawyer told me that they only can garnish your wages if your making $150.00 a week or more which I make less than that. I've been paying one of my other cc's off for about six months now about $50.00 a month. But I can't afford to pay any others off til I'm done with that. So because the only thing I have of any sort of value is the car he said they would put a lien on it vs. taking the car til I payed the $2,800.00. The lawyer said I shouldn't be paying anyone back at the moment because I really need the money to live. My plan is to pay them off one by one slowly. Since some of them are continuing to pile on the interest. I tried a debt consolidation once and I found that they were just paying the minimums and taking there share but the bills were not going down. Problem is most are scams (I've heard) so if i could find one that wasn't crooked then I'd do that. But I was thinking since i only have the one car (single parent) and I have a son who has a heart condition and one with autism that i could prevent them from taking it? I don't know. And legal aid isn't exactly always the best of lawyers. I was thinking It'd be nice if I could put the car into someone else's name, but so far I don't have anybody that could do that for me..

RayRay
post #4 of 8
Are your kids' fathers giving support?
post #5 of 8
Thread Starter 
Quote:
Originally Posted by srain
Are your kids' fathers giving support?
Two of them get support (thought not enough), but working on the other one. Sometimes they'll surprise me and do something extra...ex. my oldest wanted to be in Karate...I explained to his father that I just can't afford it, so he said he's going to pay for it.

RayRay
post #6 of 8
Quote:
Originally Posted by AuntRayRay
Two of them get support (thought not enough), but working on the other one.
Do you have court orders for appropriate amounts? Get 'em!
post #7 of 8
I can tell you that iI paid off $10,000 in cc debt by myself in 23 months with an income of less then $2000/month.
It means buckling down and takes time, willpower and patience. You can do it though.
Sort out your bills, figure out how much you need for you necessities - cut out any "fluff" (lol) like eating out, renting movies, driving places you can walk, conserve electricity, etc and most of all - STOP using the cards.
Then, figure out which is your highest interest cc and (while making minimum payments on all the other ccs,) put every penny you can towards the highest interest cc.
When you get the highest interest rate cc paid off, roll the amount you were paying on that into the payment for the next highest (so you will be paying the large payment PLUS the other cc's minimum payment - i.e., cc A (highest rate) payment is $300 a month while you are making the minimum payments on all the rest (cc's B-H) - $15. Then cc A is paid off, so now you are paying $315 on cc B.. when B is paid off, you will then be paying $330/mo on cc C and so on).
It's hard and requires a lot of sacrifice, but you can do it. Hope that helps.
post #8 of 8
Thread Starter 
Quote:
Originally Posted by Raynbow
I can tell you that iI paid off $10,000 in cc debt by myself in 23 months with an income of less then $2000/month.
It means buckling down and takes time, willpower and patience. You can do it though.
Sort out your bills, figure out how much you need for you necessities - cut out any "fluff" (lol) like eating out, renting movies, driving places you can walk, conserve electricity, etc and most of all - STOP using the cards.
Then, figure out which is your highest interest cc and (while making minimum payments on all the other ccs,) put every penny you can towards the highest interest cc.
When you get the highest interest rate cc paid off, roll the amount you were paying on that into the payment for the next highest (so you will be paying the large payment PLUS the other cc's minimum payment - i.e., cc A (highest rate) payment is $300 a month while you are making the minimum payments on all the rest (cc's B-H) - $15. Then cc A is paid off, so now you are paying $315 on cc B.. when B is paid off, you will then be paying $330/mo on cc C and so on).
It's hard and requires a lot of sacrifice, but you can do it. Hope that helps.
Thank you so much for sharing....it does help soo much to hear that someone went through this and succeded. It gives me more hope. Thanks
I've already made out a budget from Microsoft Money and that alone put things into perspective.

RayRay
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