Is it OK to talk about a financial quandry here? (weather, moving)
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It's like this. The more effort I put into getting out of debt the deeper in debt I go. I honestly do not know what to do. I am not willing to try bankruptcy. Already talked to an on-line bankruptcy attorney who advised against it.
Because of bills I need to pay every month, there is very little left over to make more than the minimum payments or to have enough cash available to pay for an emergency.
For example: I have a cat that I have had a long time 10+ years who is about 11 (not that old and certainly not ready for end of life). I noticed for a while she was having some difficulties and the vet had said at one time she had a heart murmur. So today something happened that made me call the vet for an appointment. Bottom line? Overactive thyroid. Well that is a relief. Easily treated with daily meds. BUT the crunch is how much those meds will cost me. They come from a pharmacy in NJ (nothing local to me) and will be shipped from there. Total monthly cost is close to $40. Well, if I have trouble coming up with extra money for my bills, this is presenting a very large problem for me.
I can't seem to get ahead.
I know, some would say get rid of the cat. But I can't. She is my buddy (as much as a cat can be that) and I would have a tough time letting her go.
I just don't get how this seems to keep happening. I have heard Dave Ramsey's philosophy but I honestly do not see how it would work for me.
It's like this. The more effort I put into getting out of debt the deeper in debt I go. I honestly do not know what to do. I am not willing to try bankruptcy. Already talked to an on-line bankruptcy attorney who advised against it.
...
NC, you are being just a little too coy here.
You have no assets to liquidate to pay creditors or vet bills, yet you claim that BK and vet care for your aging cat are non-negotiable constraints. You don't - as you correctly state - have any room to maneuver if you are not willing to do what needs to be done. Is hubris the problem? Are you concerned about what people will think? - Then let them live your life for you, because that is the power you would be giving them if that is your motivation for not helping yourself.
Bankruptcy is not a personal shame. It is a business proposition. CC companies write off debt every day. This is no time to avoid the hard decisions - aka, the "reasons you can't go into". Call TakeChargeAmerica or one of those non-profit credit counseling centers. Tell them your age and your circumstances. Tell them you need to settle at ?pennies on the dollar. Once you hear with your own ears that the counseling centers won't work with you because there's nothing to work with, your remaining option is BK.
You did not state the "on-line" attorney's rationale for advising against BK. Let go of any pretensions about quality medical care for your cat, and holding your head high in a town you're intent on leaving, and eschewing subsidized housing. You need breathing room. At this point, it's survival.
If a non-profit credit workout company will not take you as a client (because you have too little), you are staring at an immovable wall. You HAVE to file for BK. Your alternative is to simply stop paying and vanish.
Bankruptcy was made for people like you, who need to wipe the slate clean. Make an appointment and go visit your town's attorney (the one paid for by tax money) and ask him/her to refer you to a local attorney who will handle your bankruptcy case pro bono. Go visit your town's Agency for the Aging. Yours is not a new problem under the sun. They will be able to advise you. Ask them for a referral to an attorney who will handle your case pro bono, or as a client of the Agency for the Aging. Why did you not apply for housing assistance years ago?
Your creditors cannot go after your SS through the BK trustee. They can't intercept your Federal refunds, if any. The only thing they can do is ding your credit score, and tens of millions have been dinged, what with the Great Recession. BTW - if you HAVE Federal refunds, arrange not to have them. Have less withheld.
FICO score will be shot for three years. So what? What do you envision buying on credit? Move to a town with senior transportation. Once your car dies, don't get another one. You'll have disposable income if it's not consumed in cc payments. For BK: You'll need the filing fee. If you have little enough income, that will be relaxed or waived. Baby-sit for cash to finance your BK and your move. Just abandon your shackles and gain freedom, otherwise you'll not have it before you die.
Millions of people live with thyroid problems (AND have life after BK). Millions of animals live with thyroid problems. Research Synthroid - perhaps it is suitable for cats. Did you come clean with your vet about your dire financial situation? Did you ask him about no-cost/low cost alternatives? He will have ideas for you. Synthroid is cheap and you can get it at Wal-Mart for $4.
Research your state bankruptcy laws, vs. those of other states. IIRC, NY is very pro-consumer. If not, get out of there with a suitcase and the clothes on your back and move to a place that is very, very lenient. Leave the cr*p behind, you can't afford to lug it. Hook up immediately with the Agency on the Aging and get on the wait list for a subsidized apartment. In the meanwhile, you may need to find a rented room.
So, in sum, I believe you should aggressively seek the help that is available (pro bono bankruptcy; housing assistance; any help available for the elderly indigent - that is what you are). Let your cat coast with his thyroid condition until you are on sounder financial footing. And get the h*ll out of a toxic, high cost state UNLESS they can get you a FAST BK.
That's all I've got. I know it's been a rough road and hindsight is 20/20 - but let this be a lesson to us all. Let cold, hard reason be our constant companion. We older women cannot afford wishful thinking.
I'm sure your cat isn't the cause of your debt. The cat can stay.
In the last 7 years we have paid off approximately $35,000 worth of debt, including a $5k vet bill when our dear cat was run over by a car. We did this even though one of us lost employment and we have been living on one income ever since. We also have managed to put away savings. And during this time we paid for our son to do 2 years of college.
Here's how we did it:
We rent a cheap crappy apartment. We do not own a car. We do not have any cell phone. We don't buy stuff because then we'd have to haul it home on the bus. Cars are spending enablers outside of being a huge expense all of their own. We live on a weekly cash budget, we pay cash for everything. We never.charge.anything.
No house. No car. No insurances and maintenance for those things. Just food, utilities, and debt payments. My one indulgence is season symphony tickets which cost about $400 a year.
That's it.
Two years of college, $35k worth of debt paid, and savings in the bank living this way. Plus cat food of course.
PS - there is another poster on these boards, Colorado Rambler I think her name is, who was in a similar dire situation. She actually camped in a tent for six months on Federal land until the weather got too cold, and then got a rented room (I think) in town until the Agency for Aging found her subsidized housing.
OP, I think the bankruptcy option is worthy of your consideration. Normally, I do not recommend that route, not because I worry about banks and creditors. Those people are evil and are harvesting you. If you were younger, I'd say, work it out, learn to be frugal, go on an austerity plan. But in your case, you have few years left to enjoy, are stuck in a high tax state, are anxious to escape, and are having a really difficult go of it. Chapter 7 banktuptcy was made for someone like you.
Yes, there will always be people, usually couples, who cut it to the bone and pay off the debt. Other times, that just does not work. Dave Ramsey is not someone you need to listen to. You need to get over this monstrous hurdle in your life. And yes, there are attorneys who advise against it. They have their own agendas but what is best for them, is not best for you. So stick to your guns on this.
A pro-bono attorney, if you can find one for Chapter 7, will bring you immediate relief. You will still owe any taxes due, but after the debt discharge (which always goes smoothly unless there was some fraud involved) you will be a new woman. You will be able to move, live in a better place, have your car fixed, buy the meds for your cat, be able to travel a bit, and just have more breathing room. You have suffered enough, and deserve a second chance, a fresh start in life.
If you go this route, I recommend that afterwards you put a freeze on all 3 credit bureaus. The credit card hawks will bombard you with offers to "re-establish" your credit. You will be fair game for these vultures. If your credit report is frozen, there will be no offers. Later, you can thaw the credit, if you want to try again.
Meanwhile, your credit will not be good, but you will have more cash, and you can see how living without credit and bills works for you. Kind of a new learning experience. But do look into it. I really don't think this is the best option for many people, but given your age, your single status, and your need to move ASAP, it may be best for you. And if your cat's thyroid is over-active, Synthroid won't work.
I hope you don't feel like you are getting beat up. I think we are all offering our opinions to help. Here is mine.
If there isn't more to you financial situation than you explained, you are bankrupt. I came back and edited to bold that to be clear. Declaring bankruptcy is just askig for help in resolving that. You cannot meet basic living expenses (and for a solo retiree, I think a single cat is a basic living expense if you like cats) and pay down debt. There is no way to increase income or to substantially decrease living expenses (except possibly moving which has a cost). I suspect there are no assets to speak of since you did not mention them and because the on line attorney isn't interested in your case. I know an attorney who rarely does them because of the problem with getting paid (love 'em or hate 'em, practicing law is not their hobby; they have bills too). Their preference is to get part of liquidated assets. That sounds heartless, but if your liabilities were greater than your assets and they work a deal to split the assets so you get to keep some, they get paid and the creditors divvy up the rest and call it a day that is better than losing it all. So if there are no assets, a lot of attorneys are not interested.
Last edited by ReachTheBeach; 06-23-2015 at 05:48 AM..
I am not willing to try bankruptcy. Already talked to an on-line bankruptcy attorney who advised against it.
The responses you've gotten so far may be worded strongly, but maybe the wording is a wake-up call and call to action. Jane's and Nor'Eastah's advice is the best there is in your situation. When you say you're not willing to try bankruptcy, that's a leading statement, either born of fear about the process or some misguided pride. Bankruptcy would not make you a leper, it would allow you to stand before the law with an honest face and say look, I have to go this route, there's nothing more I can do. No one wants to see a senior on the street. I agree with others, create a new life for yourself, and for your cat. (–:
d your move. Just abandon your shackles and gain freedom, otherwise you'll not have it before you die.
Millions of people live with thyroid problems (AND have life after BK). Millions of animals live with thyroid problems. Research Synthroid - perhaps it is suitable for cats. Did you come clean with your vet about your dire financial situation? Did you ask him about no-cost/low cost alternatives? He will have ideas for you. Synthroid is cheap and you can get it at Wal-Mart for $4.
Great ideas overall...but regarding thyroid - the OP said OVERACTIVE. The cat has TOO much thyroid hormone so cheap Sythroid is not the answer. There may be other options but the obvious and cheap one won't work here.
The general legal advice is "Don't file for bankruptcy if you have no assets and no (attachable) income". Creditors know they can't get blood from a turnip. They will not admit it but they sure as heck know it. This may be why the online atty advised you not to file and that is precisely why I have advised others not to file. But...
When you previously posted that you could only afford $600/mth in rent, was that figure calculated based on your current debt load? Would you be able to afford a decent apartment if you did not owe on the credit cards? I have a feeling most of us would be stunned at how much the debts are eating up your entire income.
IMHO, you need to consider your (dormant) dream to move to NC and whether bankruptcy would enable you to obtain that dream or whether it would preclude you from renting in NC. (If you were dreaming of moving to NC and "living high on the hog" I think most of us would say "Forget it, you're on your own sweetie".) For example, scraping together the security deposit and first month's rent for an apt in NC, moving and THEN filing for bankruptcy. If you file for bankruptcy BEFORE the move it could preclude you from obtaining ANY new apartment. Even applicants for subsidized housing have their credit run as part of the application process.
You are 73 years old. It is very possible that you can never pay off the debt but your brain just doesn't allow you to see that. It is something to think about. If you will not consider bankruptcy, have you considered negotiating with the creditors? If so, have someone else do it on your behalf. I have a feeling you would not be particularly good at it because you appear to be a "softie".
Looking forward to your response. And let us know the name of the cat's medication, perhaps we can put our heads together on that as well.
Listen to Lenora. Good advice. Hope this works out for you - keep the cat.
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