Help I am in huge debt with credit cards and loans

by Verito

Hi: I have been getting every 1/2 hour, Monday to Saturday phone calls from collection agencies. Previously I had worked a few ways to pay them back. But since October I have no job and my husband left me with 2 kids. He's helping with the bills but I have nothing left for me.
Back in May 2009, and after 6 years I closed a health food store business. Knowing that my husband and I weren't getting along I did not want him to find out I took a loan under my name.

BIG MISTAKE, the money was for the business 100% and I ended up closing it, because of the bad economy and the total sales drop. I had no choice but leave as soon as it got worse, but the damage was done already.

I found a job for 9 months, but I got laid off. That was the only resource where to get my payments done. I don't know what to even tell this people. I run out of money. I am going thru a hard time in my life (not including relatives suffering from cancer) It's though. Is there any law in NJ that could help me in any way. I'm willing to get back any pennies I owe, I just run out of way out. Please HELP ME.

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Dec 18, 2009
Too much debt
by: Anonymous

So sorry to hear about your financial troubles. I realize that you are going through a very stressful time.

Based on the information you've provided, I think you ought to schedule an initial consultation with a consumer bankruptcy attorney. Many attorneys do not charge for this initial meeting so when you call an attorney's office to set up an appointment be sure to ask if your first meeting will be free.

The attorney will evaluate your financial situation and advise you about whether bankruptcy is your best option or if there are other actions you might take to avoid bankruptcy. Having a clear course of action should help alleviate some of the stress you are feeling and help you realize that there is a light at the end of your debt tunnel.

Good luck!
Mary

Sep 20, 2011
Advise from someone who lost his business (part 1)
by: Anonymous

Advise from someone who lost his business:

1: Remember: the one thing that they cannot take away from you is your life. Smile, go to the beach, take a walk, feel the sunshine on your face and enjoy the little things. They can't pluck feathers from a bald chicken. :)

2: Ask yourself: can i afford to pay $100 in TOTAL COMBINED to all these creditors monthly? (Hint: Your kids and your daily needs come first. If you are super strapped for cash, then the answer is an easy NO.)

3. If the answer is yes, i can easily afford to pay $100, consider doing that. (if you have 1 collection agency, pay $100.if you have 2 agencies chasing you down, pay each $50. point is. NO MORE THAN $100)

4. Is $100 the magic number? NO! But if you are having a hard time to even buy food, then i think it is. (Even $50 is ok)

5. But the collection agency wants me to pay $800 a month? Hahaha. They can want the world. Does not mean that you have to give it to them? NO! This is very important: THEY CANNOT FORCE YOU TO PAY MORE THAN YOU CAN AFFORD! It is something no-one talks about, but is true. If you pay only what you can afford, no matter how little, you will always look like a decent person in court. Almost NO JUDGE will rule against you!

6: If you cannot pay $100, maybe consider the bankruptcy option. All this pressure on you will go away very quickly. But there are consequences. Talk to an expert. I did not file bankruptcy because i decided i wanted to start a new business somehow, somewhere, in the near future.

I could not pay even $1. I had nothing. Here is what i did:

(Next....)


Sep 20, 2011
Advise from someone who lost his business (part 2)
by: Anonymous

1. Get a new address. Change apt. (I moved in with my friend). The new address should not be under your name. Its important to close this chapter of your life. you need breathing space to start anew. That is what most lawyers, agencies, consultants do not understand. If you keep getting phone calls every day (imagine every 1/2 hrs!!), you will NEVER be free to reboot your life.

2. Get 2 new mobile phone numbers. 1 monthly plan and 1 Prepaid. (Do both prepaid if you want to be extra safe. no one can find prepaid numbers)

3. If you get 1 number on a plan, only give that to people who are new in your life. (example: the only 2 existing old pp that know about my new number are my mother and father. And i trust them to never give that number away) Everyone else who has that number are the new contacts, colleagues i made from that day forward) The great thing about being in a financial rut, is that you find out who really your friends are. Many people who i thought were friends, did not want to talk to me anymore after the business closed.

4. Give the prepaid number to everyone in your contact list. You will soon find out if those friends give this number to collection agencies. Once you start getting those annoying collection agency calls, you can decide to throw away that prepaid number.

5. Discontinue your old phone number.

6. Get a forwarding address (under your name - mail box at UPS will do) and start anew. It should look like a regular address. (Remember: You are NOT running away from your debts! But NO debt collection agency will understand that you need space and time. They will keep calling you over and over.)

7. Give that forwarding address to the US mail service. Debt collection agencies might check to see if this is really your address.

8. Send nothing in your name to your new address.
Debt collection agencies can track you down.

9. Call each of your collection agencies and explain to them that you cannot pay anything right now. Apologize and be honest. (I recorded that conversation.) I then send a letter to each of my collection agencies reaffirming my situation, no money, and that they can send letters to my new address (the mailbox), gave them a legit skype phone number that goes straight to voicemail, and told them i would be in touch with them when i would be able to make minimum payments.

10. 1 1/2 YEARS LATER i got a good job, and i started making payments i can afford and I decide how much i pay. I still have not received any more phone calls. I still have my forwarding address. I have the space to pick up my life and am repaying my debts.

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