Pro Rata or Bankruptcy?
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  1. #1
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    Default Pro Rata or Bankruptcy?

    Ok, I got DR read and tried filling out the pro rata. Closed our cking acct because fingers were in it. I'd give them permission to take out 52 they'd go 56, take out 112 they'd go 125. Sending payments in mail order now. No cking acct. Hubby is getting crazy with all the phone calls. Now it just isn't phone calls for nonpayment, but phone calls because it isn't enough.

    He's wondering if bankruptcy wouldn't just be "easier". We got 6 mo behind when hubby had surgeries. He's being driven nuts by these ph calls. They don't bother me. I just uh hun yea I understand but I can only do what I can do my way thru them. He's back to work, but our dispos income is way too little to cover all the overdues and overlimits. Se want to fix this, but hes going kookoo working overtime and see it getting us nowhere fast with the late fees, overlimits, etc.

    Should we just bankruptcy and get it over with? Get a counselor of DRs? I admit to feeling way overwhelmed myself. Trying to get more work is hard right now with the market.

    Selling everything I can on Ebay, hoping to salvage Christmas but the kids understand. Only owe on CCs and house. Cars are cash deals. Should we just re-evalutate after holidays? Drive ourselves crazy and get it over with or what? We have land, 30 acres for sale, but have had trouble with it being behind a RR. If it would sell all our problems would be gone. *sigh* Consider myself lucky to have things to sell, but it doesn't do any good if they don't sell, right? Going nuts!!!! Any advice?
    schmidle
    new enough to not figure out all these banners things, but about 66K in debt wih CCs and house....

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    absolutely bankruptcy would not be eaiser

    do not do bankruptcy unless abolsute bottom choice

    NO the less annoyed approach is not good...LOL.....but yes, spend money on a lawyer if needed......or get an answering machine and do not pick up the phone.


    you are paying....that is all you need to do.

    NO don't be pushed into ANYTHING---get financial/lawyer help first......seems crazy being harrased but never let ANYONe OR any INSTITUION "make" your future for YOU.

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    Registered User Greebo's Avatar
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    I'd love to own land by a railroad - I love trains.

    Unless you actually get sued - no, I wouldn't go the bankruptcy route. You can send letters to the creditors demanding that they stop calling under the Fair Debt Collection Management Practices act.

    A bankruptcy lawyer is going to cost you more money and if you've got an income, you won't get out of paying, you'll just get a type 13 which will set up a payment plan.

    Sorry to be blunt but DH needs to suck it up or stop answering the phone. Get Caller ID and call block and learn what calls simply not to answer.

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    Registered User Contrary Housewife's Avatar
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    If the calls bother you turn the ringer off and let the machine get them, or write and tell them they can only communicate with you by mail.

    Do whatever you can to get rid of the late fees and overlimit fees. Those are killing you. If you have a lot of accounts, try and close the smaller ones just to reduce the number of bills you have to track, that will help a lot.

    I've been in your situation and it was crazy and depressing and hopeless, but we got out of it with perseverance.
    Stop trying to organize all of your family’s crap. If organization worked for you, you’d have rocked it by now. It’s time to ditch stuff and de-crapify your world.

    If you're not using the stuff in your home, get rid of it. You're not going to start using it more by shoving it into a closet.

    Use it up, Wear it out,
    Make it do, Or do without. ~unknown

    Because we, the people, have the power to build a better future. KH

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    But to get rid of late/overlimit fees, we'd about have to send one of them hubby's paycheck. Sad, but 6 mo of hospital really put us out there on overlimit/overdue stuff. Just give one a big check at a time or how has anyone gotten past this? Now when they call they won't do anything unless it is an automatic payment via debit card or cking acct. They aren't happy getting money, they want it NOW and they want MORE. Pulling my hair out since I just got the pro rata thing figured out and now they all call me more because it isn't enough to suit them. ha

    Just trying to figure out how to save Christmas for the kids, sanity for hubby, and a life for all of us! Ugghh selling, selling, trying, trying....
    schmidle

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    remember one thing---CC companies can not take your home, can not take your car, can not garish your wages etc. yes they can make your credit lousey, the can harrass etc....but you are not "at their mercy" truly in any way.

    Call them....chat with them.....get a lawyer to work out reasonable payments and timely matter etc.

    If you do NOT take responsibily to attack and handle your debt problems that you created thru your life, then you can't sit home and cry about it......I don't mean that nasty believe me, but you must take action and fix the situation. Control means you are trying, just sitting back feeling like the victim and rolling over and saying "done" doesn't work.

    Fix yoru financial problems no matter how hard it can be done. Be proactive in your finances.....yes, you can do it.

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    Registered User Greebo's Avatar
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    Quote Originally Posted by schmidle View Post
    But to get rid of late/overlimit fees, we'd about have to send one of them hubby's paycheck.
    And right now you can't, so right now, guess what? THEY DON'T GET PAID.

    Sad, but 6 mo of hospital really put us out there on overlimit/overdue stuff.
    And dh's health is much more important than any credit card debt.

    Just give one a big check at a time or how has anyone gotten past this? Now when they call they won't do anything unless it is an automatic payment via debit card or cking acct.
    Blah blah blah of course they say that. You send them a money order for partial payment with your account number on it and you watch them deposit it. They will. They're just trying to scare/anger/upset you and DH into making THEM more important than your own household.

    EVENTUALLY they will close and charge off the account - and the fees will stop accumulating - and in time, you'll be back on your feet and be ready to start paying them back - but by then the accounts will have been sold to debt collectors and you will be able to offer settlements in the amounts of the original amount owed, or even less.

    They aren't happy getting money, they want it NOW and they want MORE. Pulling my hair out since I just got the pro rata thing figured out and now they all call me more because it isn't enough to suit them. ha
    Tough titties for them. Here are your priorities with your income:
    1) Food
    2) Lights
    3) Roof
    4) Transportation
    5) Basic clothing

    Anything after those 5 is gravy - and if there isn't enough money to pay them what THEY want now, you pay them what you CAN and they can pound sand. You just keep telling them you WILL make good on your debt - just not right now.

    Just trying to figure out how to save Christmas for the kids, sanity for hubby, and a life for all of us! Ugghh selling, selling, trying, trying....
    schmidle
    Sell so much the kids think they are next, Christmas is a craft and a lot of family togetherness, and the kids learn an important lesson - you turn this into an opportunity to teach them what never to do. NO DEBT IF YOU CAN HELP IT, EVER.

    My parents were depression era children. They survived hard times brought about by the prior excesses of their parents, and were financially the wiser for it. We've cycled around again - and now the children today will be the wise parents tomorrow.

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    Okay, I feel less frantic. Now is there any card I should concentrate on paying more than others? I read somewhere about Sears taking you to court. Apparantly they all send letters and call that the debt has been sent "to them" but I laugh, because the address is the same as where I sent bills previously.

    We've got Discover, Chase, GE, FIA on our list.

    Sorry to say they pulled the old railroad out Greebo about 20 yrs ago. I still miss the train whistles.... Still hope to sell it even whithout the whistles...I can at least sell the little stuff for now. I've offered the kids to a few people, but no body'll pay more a quarter. lol Makes the kids mouth hang open for a minute there. I just like hearing the MMooooommmmm!! afterwards, but they know too well I'd never do that. hee Always makes us all grin anyway.

    schmidle

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    Your priorities are as I listed above - those first - always those first.

    For the pro-rata, you only worry about the dogs that are awake. IOW if they aren't sending you bills/statements, you don't send them anything right now.

    For the rest - do it like Dave says - whatever you have left to pay debt with after the 4 walls are covered, you divide up based on how much each is owed. So if you need $500 a month, but you have $100 - and 2 cards are 25% of the total debt each and 5 cards are 10% each you pay $25, $25, $10, $10, $10, $10, and $10.

    Nobody gets special treatment.

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