Help! Advice needed.

[momishem]

Ok, I am just gonna spill it. I am so upset I don't quite know where to begin. I found this site back in December and was on board wholde heartedly until March 7 when hubby got laid off from an auto manufacturer. We have done pretty good about not adding new debt and keeping everything up to date without being late. Now it has been almost six months since the lay off. Now we have to start paying for our health insurance! We were very lucky to not have to pay because his employer had a plan that was free to us. Hmmm, guess we are paying for that now. Anyway, I can pick up decent coverage through my job at the school for $272.00 per month, just health. Even though 3 out of 4 of us wear glasses, they are not too expensive and I cannot justify the extra for coverage that is not that good. Dental is just plain out of the question. Thank God I used to work for a dentist and I know a lot of them around here who would take care of us in an emergency and let us make payments. That is not the problem. My big question is what about the credit cards? What is gonna happen if we need to call them and tell them we cannot pay now? Most are either in his or my name. He gets unemployment. Can they garnish unemployment? I do want to pay them and there is a possiblilty of a severance package because the company is closing. He works whatever job he can find for cash, since he cannot "legally" make any money. I already work two jobs and it is killing me. We did qualify for reduced lunch for the kids. That was a plus. I am just scared about the credit cards and what they will do to us. We have a 401k plan, but the company will not let us close it out unless he quits, which would keep him from any severance package they MIGHT give us. Otherwise, we have to wait for the plant to close before we can get that money out. I would sell the house, but the whole town is hurting and houses are not selling. Yikes! I am tired of all this thinking! Help!

[Greebo]

My big question is what about the credit cards? What is gonna happen if we need to call them and tell them we cannot pay now?

Oh, they'll pitch a fit, they'll threaten you with everything and then some, and in the end, they'll be rude, obnoxious, and scary.

And thats it.

Most are either in his or my name. He gets unemployment. Can they garnish unemployment?

I don't *think* so, but I'm not sure. Either way, they CAN NOT garnish anything unless they actually sue you, and if you go to a judge right now and say, Judge we want to pay but we can't right now, the Judge will say, "Yep, you owe the money, pay em when you start working again".

Yes, you owe the money - but here is what comes first:
1) Food
2) Lights/Utilities (ESSENTIAL ones - HBO isn't a utility)
3) Essential clothing (Goodwill, not Neiman Marcus)
4) Rent/Mortgage
5) Transportation

Anything else you can pay in a month, great, but DO THOSE FIRST, and keep good records of where your money is going in case you do get sued.

I do want to pay them and there is a possiblilty of a severance package because the company is closing. He works whatever job he can find for cash, since he cannot "legally" make any money.

Don't risk the severance. When/if you get severance, DO NOT PAY THE CC's with it - you need it to live on until he gets another job.

I am just scared about the credit cards and what they will do to us.

Think 3 year old who didn't get the cookie they wanted. That's about right, but from a grownup voice. They'll be real pissers, but thats just all hot air.

We have a 401k plan, but the company will not let us close it out unless he quits, which would keep him from any severance package they MIGHT give us. Otherwise, we have to wait for the plant to close before we can get that money out.

NO! NO! NO! DO NOT even think of touching the 401k because of *CREDIT CARDS*. The money in your 401k is sacred. If you took the money and used it to pay off debt you'll get hit with up to 40% taxes. DO NOT EVEN THINK ABOUT IT. Roll it into an IRA. CC's can't TOUCH 401k money. If they say they can, they're lying.

I would sell the house, but the whole town is hurting and houses are not selling. Yikes! I am tired of all this thinking! Help!

Breathe.

Right now you're scared. Scared will lead you to rash action, which will lead you to broke, desperate and stupid. Don't go there. Just ... Breathe...

The CC companies can talk, and they can talk a lot, but that's all they can do unless they actually sue you, and if they sue you, LAUGH at them, cause you've got nothing for them to get right now. Just make sure you make it clear to them, "we WANT to pay you, we WILL pay you, but we CAN NOT pay you YET".

If they get really nasty, get a phone recorder and tape the calls, and call a lawyer, cause if they violate the Federal Fair Debt Collection Act, they are so skrewwwed.

[Greebo]

Oh, and by the way...

(((HUGS))) - Sorry you're having to go through this, but you will get through it. Don't let the CC ppl scare you - FV will be your moral support!

[kaurand554]

For your own piece of mind I would read through the Fair Debt Collection Act.... and see what they can do... how often they can call, etc and when...

And Greebo is right if they violate it they are screwed...

The only other thing I would look into is a Homestead... (I believe it is called in Mass) you file it with the county your land is registered with and it protects your house from certain liens they may or may not place.... which will not happen until or if they actually sue you in court. And if you actually appear in court... it will never happen... when you show you can not pay but want to...

Hope it helps... things will get better... they always do!

[joyofsix]

I agree with what Greebo said above. (I'm sure he'll be thrilled he agrees with me, LOL) Breathe, pay for the necessities and let them howl at the moon. Sorry you're having such a rough time.

[Michelle68]

What everyone else says . Big hugs going out to you. Do what you can to keep a roof over your heads and food on the table. Worry about the CCs when things are not so desperate.


--Michelle

[prftstrngr]

I know its hard not to stress....my Dh lost his job last October and hasnt found anything yet. He is actually starting school in September which is no less stressful for me because he will have even less income than he gets on unemployment. But you really do just have to sit back and take a deep breath...say a prayer or two and get organized. The best advice I can give you is to really organize your household. Be aware of where every penny is going and dont let the CC companies scare you. They call me and I just tell them how it is.... you will get money...when I have money to give you. If they get nasty...I say thank you for your time and tell them I am hanging up now! They HATE when you are nice! Good luck with everything and I sure hope he gets a job soon!

[shortstack]

Isn't it illegal to record a phone conversation without the other party's knowledge? Seems like I heard that somewhere a long time ago.

Andrea

[Gabe]

It depends in what state your located. Since she is in Indiana she does not need to tell them she is recording the call. Its a one party consent.

Even if the credit card company is located in another state where it is all party consent, the jurisdiction of the case will fall within her state.

So one party consent would apply.


All party consent would mean that all parties on the conversation consent to the recording.

P.S. I am not a lawyer of course. But I would say it is ok to record the call without you telling them.


There are twelve states that require all party consent. They are:


California
Connecticut
Delaware
Florida
Illinois
Maryland
Massachusetts
Michigan
Montana
New Hampshire
Pennsylvania
Washington




There are 38 states that permit one party consent. They are:


Alaska
Arkansas
Colorado
District of Columbia
Georgia
Hawaii
Idaho
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Minnesota
Mississippi
Missouri
Nebraska
Nevada
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
West Virginia
Wisconsin
Wyoming

[Nishu]

Google, friends!

Most are either in his or my name. He gets unemployment. Can they garnish unemployment?

Limitations on Garnishments

Under federal law, the creditor can only take a specified amount from your paychecks, which is based upon a percentage of your "disposable earnings," that is, your pay minus required deductions, like state and federal taxes and Social Security withholdings.

Your income can't be garnished if it comes from:

* Social Security benefits
* Retirement plan benefits

Public assistance benefits

And, unless the judgment is for child or spousal support, your income can't be garnished if it comes from:

* Workers' compensation awards
* Unemployment or disability benefits

http://bankruptcy.lawyers.com/consum...rnishment.html

[momishem]

Thanks for the info. We absolutely do want to pay and are embarrassed that we cannot. We are not even late on one, yet. I am just planning on our budget for September and beyond and I know it is coming. I am DAMM proud that we have made it this far without any major help. Unless you count reduced lunch and it just started last week. I just hope they can see we are very stable people, we have lived here all our lives, born and raised. Always worked and have lived in our house since we got married 20 years ago. We are so stable we are BORING. But, we have always carried a lot of cc debt. Pretty easy to do with both of our incomes and even when our incomes were not high, we made the mistake of living like they were by using cc. WE realize that now and are paying the price.

Thanks to all for your information and help.

[missmanny]

Hang in there you are doing great - to not have charged any more debt through out this.

Hope that things start to look up for you soon