Debt Dumpers - 2016

[rnorwo1]

Do not put any of your assets or credit at risk. This is his problem and while you can help him with a strategy that should be it. Your brother owes a lot of money to a lot of people but there is information missing here that might help us understand the situation better. For example, what is his income, does he rent or own, what state does he live in, what amounts owed are secured loans, what bankruptcy chapter are the lawyers recommending? Can he get a roommate to reduce housing costs? What else in his "basic expenses" can be cut out or reduced? Some people would think they have to keep cable and their high priced cell phone plan while it might be better in the long run to pay the early termination fee and eliminate the monthly cost. Does he have health insurance that will pay for his surgery and PT and are his deductibles paid for this year? If so, he should have the surgery this year rather than waiting and having to pay another deductible for the new year. Can he save costs on any of his insurance? For health insurance, the window to change is coming up and he might look to see if there is a lower cost plan that he qualifies for. If his problem is that he has been spending too much and has enough income, getting him on a plan to pay things down might be the discipline he needs but he has to be willing to change. Spending money because you don't feel good has to stop. Trying to snowball will be a waste of money if he ends up in bankruptcy after all. The lawyers probably see that since they should have a more detailed picture. Probably the most important question is will your brother go back to his old ways if bankruptcy clears all his debt for him?

He absolutely understands the connections and knows that he has to change, but there is a lot of hopelessness going on also. The vast majority of it is medical debt, so he wouldn't be in much better shape even if he hadn't over spent at charity events and the clothing thing. He does live pretty bare-bones, no cable or anything, only his work phone, etc, and he hasn't been going to PT for awhile, but he makes stupid mistakes like giving into a couple of threatening creditors, sending money to them, and then getting into a vicious over-draft cycle that he didn't know how to stop. (He eventually went to the bank and had them freeze his account and he's ok on that now, but that cost him a ton for a couple of months.) Understanding the connection and changing the behaviors is two different things, though, and of course there's no guarantees he won't be back in this situation again in the future.

DH and I have never had any personal consumer debt, not even vehicles, and we paid our 30 year mortgage off in less than 10. I Can definitely help him in planning all of this, looking at where else he may be able to save, etc. I posted the original question just to make sure there wasn't some factor I was missing, because if I'm off by just a couple of hundred a month, then this won't work, it is just cutting it too close. And I don't know anything about how things work with bankruptcy consolidation, collections, etc. I agree, I don't want him to snowball any of it if bankruptcy is inevitable, I'd rather him take the cash he's going to get from these things he's selling and put it in the savings (wonder if that would have to go in someone else's name?) so he can have something for a new-used vehicle when his finally dies.

Anyway, thanks for the additional points to consider, we will work on finalizing the plans this weekend I guess!

 

[dayvewc]

He absolutely understands the connections and knows that he has to change, but there is a lot of hopelessness going on also. The vast majority of it is medical debt, so he wouldn't be in much better shape even if he hadn't over spent at charity events and the clothing thing. He does live pretty bare-bones, no cable or anything, only his work phone, etc, and he hasn't been going to PT for awhile, but he makes stupid mistakes like giving into a couple of threatening creditors, sending money to them, and then getting into a vicious over-draft cycle that he didn't know how to stop. (He eventually went to the bank and had them freeze his account and he's ok on that now, but that cost him a ton for a couple of months.) Understanding the connection and changing the behaviors is two different things, though, and of course there's no guarantees he won't be back in this situation again in the future.

DH and I have never had any personal consumer debt, not even vehicles, and we paid our 30 year mortgage off in less than 10. I Can definitely help him in planning all of this, looking at where else he may be able to save, etc. I posted the original question just to make sure there wasn't some factor I was missing, because if I'm off by just a couple of hundred a month, then this won't work, it is just cutting it too close. And I don't know anything about how things work with bankruptcy consolidation, collections, etc. I agree, I don't want him to snowball any of it if bankruptcy is inevitable, I'd rather him take the cash he's going to get from these things he's selling and put it in the savings (wonder if that would have to go in someone else's name?) so he can have something for a new-used vehicle when his finally dies.

Anyway, thanks for the additional points to consider, we will work on finalizing the plans this weekend I guess!

I did a bankruptcy about 7 years ago. I think it was a chapter 11. It took about a year total, I first met with the lawyers in July and it discharged the following May.

A part of the process required that I complete an online credit counseling class. That helped.

From what I remember, your primary residence and transportation are "safe" and I think that some savings are safe - at least I didn't have to forfeit my IRA account, which was the only thing I had that was worth anything. Funny aside, I actually got to keep my time share since the resale value was so low.

It wasn't a fun process, but it definitely was the best choice for me at the time.

One thing though, you couldn't include any debts you had incurred in the previous 3 or 6 months, so while medical bills are dischargeable, he might want to have the surgery soon and wait a bit to file. Maybe your plan can function as a stop gap measure to ensure that all of his bills are included.

 

[rnorwo1]

I did a bankruptcy about 7 years ago. I think it was a chapter 11. It took about a year total, I first met with the lawyers in July and it discharged the following May.

A part of the process required that I complete an online credit counseling class. That helped.

From what I remember, your primary residence and transportation are "safe" and I think that some savings are safe - at least I didn't have to forfeit my IRA account, which was the only thing I had that was worth anything. Funny aside, I actually got to keep my time share since the resale value was so low.

It wasn't a fun process, but it definitely was the best choice for me at the time.

One thing though, you couldn't include any debts you had incurred in the previous 3 or 6 months, so while medical bills are dischargeable, he might want to have the surgery soon and wait a bit to file. Maybe your plan can function as a stop gap measure to ensure that all of his bills are included.

They were recommending the one that is basically just a consolidation, CG 13, I think? Which I don't see is going to help him all that much because the monthly amount will be so high. For ex, they only allowed him $50 in medical expenses a month. it seems like he will be in the same boat snow-balling on his own, but maybe he can get it over with quicker than 5 years and I can't help but think psychologically would be better for changing future behaviors.

 

[gracie1]

Hoping someone here might could answer my questions concerning rural development loans...

3 years ago DH & I purchased a single wide trailer/mobile home from a local company and his grandpa sold us 2 acres of land cheap ($5000 total) we bundled home & land together to get a $0 down rural development loan.

We have had excellent payment history with the house never a late note etc.

We are now looking to upgrade house wise. We know within the next 2 years we will be ready for a larger house. We've been working on getting my credit in line (the current house is under DH name only before we got married because I had terrible credit), getting our budget in line plus he will be earning more money come next year.

We are wanting to keep the land and just sell off the trailer. (it's the Cadillac of single wides and I think we could ask $35k-$45K for it) The loan amount was originally around $90,000 including the land and all improvements etc.

The houses were are looking at getting manufactured or triple wide mobile homes doing a mortgage calculator would only run us about $75-$150 more a month.

But here's a few things I'm worried about....last year we visited Palm Harbor homes and the lady pretty much shut us down when she found out we had rural development loan for the current house and basically said we had to sell the house & land together. Another company said it can be done and we are even willing to buy the land outright if needed.

Any advice? We want a larger house before expanding our family any more it's already feeling a bit cramped with just 1 toddler in the house.

I have a manufactured home and just did a refi with Bank of America. When I got the home the land previously had a single wide trailer on it and everything was paid off so I used the land as collateral.

 

[Ngwira]

Amtrak cancelled our auto train again so we ended up driving. Stayed overnight in savannah so we are not home yet. Had to pay for hotel since weather was terrible and we were tired. Found a clean comfy Hampton inn that includes breakfast.

 

[DisneyMandC]

Amtrak cancelled our auto train again so we ended up driving. Stayed overnight in savannah so we are not home yet. Had to pay for hotel since weather was terrible and we were tired. Found a clean comfy Hampton inn that includes breakfast.

That stinks! Safe travels home! We're not getting anything here in Richmond so hopefully you have no weather issues anymore.

 

[Ngwira]

That stinks! Safe travels home! We're not getting anything here in Richmond so hopefully you have no weather issues anymore.

We are 80 miles from Richmond. Can't wait to be home.

 

[Ngwira]

Only upside to this debacle is I was refunded over $800 for the northbound train that was cancelled. So I have a big fat credit on my chase freedom. I also cancelled a cruise we had scheduled for next year giving me another $400 which represented the deposit. My car shows paid off status so I should be getting the title soon. Yay!

 

[mom2t]

Paid off my car yea! Less debt, extra money to wipe out my final credit card debt.

 

[DisneyMandC]

Finally put tires on DH's car! I think I've been saying I need to do this since approximately March Three paycheck month made that possible and we're driving to Ohio next month so it HAD to be done.

Going to really work on cutting eating out costs this month. I know we'll have some eating out when we go to a horse show in two weeks, but hope to keep it low. Hoping to start cutting some electricity costs too with cooler weather, although our bills stay pretty low regardless. We'll be eligible to start budget billing next month I think.

 

[Ngwira]

We are home. I came under budget on vacation. $430 in Disney gift cards and $200 in cash leftover.

Brutal 18 hour drive from Orlando to south jersey.....glad to be home.

 

[arlinar]

We are home. I came under budget on vacation. $430 in Disney gift cards and $200 in cash leftover.

Brutal 18 hour drive from Orlando to south jersey.....glad to be home.

Glad to see your home!

Moved to an extended stay close to boyfriend's work. It's been hard getting an apartment. Found out yesterday that a $7,000 collection account was fraudulently put on my credit report and the apartment complex denied us because of that even though I had proof that I never lived at the property. Currently in the process of disputing it.

Hoping things can go up from here.

 

[Ngwira]

Glad to see your home!

Moved to an extended stay close to boyfriend's work. It's been hard getting an apartment. Found out yesterday that a $7,000 collection account was fraudulently put on my credit report and the apartment complex denied us because of that even though I had proof that I never lived at the property. Currently in the process of disputing it.

Hoping things can go up from here.

I hope things work out!

 

[dclpluto]

We are home. I came under budget on vacation. $430 in Disney gift cards and $200 in cash leftover.

Brutal 18 hour drive from Orlando to south jersey.....glad to be home.

I made that drive three times. Haven't did that drive in about 10 years. Cumberland county here. One time I did it in 15 hours another time it took 22 hours traffic was so bad.

 

[Eureka]

We are home. I came under budget on vacation. $430 in Disney gift cards and $200 in cash leftover.

Brutal 18 hour drive from Orlando to south jersey.....glad to be home.

Last time we went down, we drove back in one day too. 14.5 hrs to Southern Maryland. We all wanted to kill each other (and ourselves). Lol. But you're home now!

 

[Ngwira]

I made that drive three times. Haven't did that drive in about 10 years. Cumberland county here. One time I did it in 15 hours another time it took 22 hours traffic was so bad.

Camden county here. Weather was terrible in Florida. Thunder, flash flooding..winds... Weather was much better the next day after our stop over in Savannah. No traffic either, but it was still another 12 plus hours with no stops. The storm is supposed to hit us here tonight or tomorrow.

 

[Ngwira]

Last time we went down, we drove back in one day too. 14.5 hrs to Southern Maryland. We all wanted to kill each other (and ourselves). Lol. But you're home now!

This. Plus since it was a spur of the moment thing, the iPad's weren't charged so the kids were super bored and ready to kill each other. I have very bad driving anxiety in certain situations..like bad weather, at night, unfamiliar surroundings..so it was a very scary proposition for me to drive. But we did it and thank God we are home. Amtrak cancelled today's train as well so God knows when we'd be home if we waited...

 

[Dentam]

I'm thinking of selling some of my stuff on eBay. Would love any tips or advice from those of you who have had good luck with it!

 

[momtosam]

Woo hoo! Closed on our refi tonight. So glad to have that done.

 

[Eureka]

I'm thinking of selling some of my stuff on eBay. Would love any tips or advice from those of you who have had good luck with it!

Good luck! It's tough these days. I used to sell there a lot, especially my kids' outgrown clothing (10-12 yrs ago) but then I got busier with work, life, etc. and stopped. Now I sell maybe 2-4 things a year that I know should sell, like professional sports team jerseys and swim jammers (competition swim suits) when the kids are done with them. Even then sometimes they don't sell or don't sell well.

Are you talking about clothing or household items? First I would say do your homework...look up your item on eBay to see how it usually sells, what keywords sellers are using in the titles, what they are pricing them at. If your items have design or line names, make sure you know those - Google helps for that; there are tons of sites for just this purpose. I always liked to price a little lower to get some watchers; you can always put a buy-it-now option for a price you'd really love to get (this way, the buyer can choose to just buy it immediately rather than let the auction play out).

Be very detailed in your descriptions and make sure to list (and take pics of) anything/everything you would even remotely perceive as a flaw. Some buyers are very picky and if they think you are trying to cheat them, they will demand a refund. (This has only happened twice for me ever, but it's a pain). I like to set a flat shipping price because I don't have a postal scale and learned the hard way by charging too little in the early days and then it would eat info my profits. Take plenty of pictures in good light and at all angles.

Hope that helps. It's all I can think of right now.