Lifestyle Bankruptcy

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Filthy

Filthy

Iowa Wrestling Champion
Jun 28, 2016
27,507
29,834
i used to help out with the Debt Counselors decades ago in the USAF...at that time there were three consistent pieces of advice:

bankruptcy is a last resort
without spending discipline, debt consolidation is a lie

I had a manager a few years ago who's wife kept spending them in to debt. Not excessive, just burning through the paycheck. He was an engineer and made decent money, but it's not about what you make - it's about what you spend. And it's just too easy to spend plastic. He got mason jars and labeled them: "Car Payment", "Groceries", "Entertainment", etc. and they agreed on a budget. He put the budgeted cash for each thing in the jars on the first of every month. For the first few weeks/months, it was hard. The jars always seemed to come up empty before the month was up. But then one month, she came to him and said "I've got money left over, where do I put it?"

and he said "that's your money. buy or save, it's up to you"
Then she was on board and they haven't outspent their lifestyle since.
 
Filthy

Filthy

Iowa Wrestling Champion
Jun 28, 2016
27,507
29,834
Wild said:
One other thing. If you can get relief on car payments, put that thing up for sale on Facebook market place for $1000 more than what you owe on it, so you can negotiate the price down to break even if necessary. Sell it for what you owe and call it a day.

I’ve sold several vehicles myself this way. Some with a bank held lien, some with title in hand. Either way, the process is simple. Print an auto purchase agreement online. Fill out the VIN# and info on the form. You and buyer sign it & they take possession. Take the money from the buyer and send it to the bank for payoff. They’ll mail you the title in 7-10 days. Once received, take it to the buyer and sign it over to them. Done.
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no shit, I was in the bank on Saturday pulling cash to buy a car and the guy next to me was doing what you just described.
If your loan is with a local bank, you can just meet the person at the branch and process everything on the spot.
Hand them the keys and the bank mails them the title and the lien release document.
 
4

4112

Guest
Grateful Dude said:
I don't have much to add here beyond what has already been said, but I wish you the best of luck. I know it may seem bad now, but the amount of money you owe isn't insurmountable. And it definitely is not worth the bankruptcy ding.

I've seen this with a couple of friends, and the worst thing you can do is ignore the people you owe money to. Even if you can't afford a payment, answer the phone if they call and just be honest with them about why you can't pay. Because if you do ignore them, they are then forced to get it however they can. But if you stay in communication with them, the will almost certainly work with you in the way of a payment plan or balance reduction. (and FYI I'm not accusing you of doing this, just trying to give some advice). When calls and other communications keep getting ignored, they will escalate to the next level of collection.

You can get through this man, you just need some patience and diligence (and maybe a little extra elbow grease). Some good advice has been given to you in here, please take advantage of it and you will get the ship righted.
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Thank you sir
 
ThatOneDude

ThatOneDude

Commander in @Chief, Dick Army
First 100
Jan 14, 2015
35,390
34,272
Filthy said:
i used to help out with the Debt Counselors decades ago in the USAF...at that time there were three consistent pieces of advice:

bankruptcy is a last resort
without spending discipline, debt consolidation is a lie

I had a manager a few years ago who's wife kept spending them in to debt. Not excessive, just burning through the paycheck. He was an engineer and made decent money, but it's not about what you make - it's about what you spend. And it's just too easy to spend plastic. He got mason jars and labeled them: "Car Payment", "Groceries", "Entertainment", etc. and they agreed on a budget. He put the budgeted cash for each thing in the jars on the first of every month. For the first few weeks/months, it was hard. The jars always seemed to come up empty before the month was up. But then one month, she came to him and said "I've got money left over, where do I put it?"

and he said "that's your money. buy or save, it's up to you"
Then she was on board and they haven't outspent their lifestyle since.
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Sounds like my ex wife
 
Rambo John J

Rambo John J

Eats things that would make a Billy Goat Puke
First 100
Jan 17, 2015
71,720
71,602
Frankinmetz said:
So we got behind on our car payment and they repossessed our vehicle. We also have some medical bills, so now my wife wants us to file for bankruptcy but I'm not sure guys and gals. What does my community here think?
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I would go into the Hospital financial and talk person to person.

A family friend did that and had 40K debt scrubbed, he was below a certain income threshold had a family in need and had been thru a rough time post surgery. The financial person had the power to scrub debts with a keystroke, he actually didn't even have to prove income. The financial person apparently had a lot of freedoms to manage debt or eliminate it. I am sure all hospitals/medical is different so this may not be the case for you, but it doesn't hurt to try...worst thing that happens is nothing and you still owe 8K.

Can't speak on the auto debt, I buy used full price in cash.

I wouldn't rush into filing, gather information like you are doing. Weigh pros and cons etc....
 
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Jesus X

Jesus X

4 drink minimum.
Sep 7, 2015
28,792
31,319
Frankinmetz said:
So we got behind on our car payment and they repossessed our vehicle. We also have some medical bills, so now my wife wants us to file for bankruptcy but I'm not sure guys and gals. What does my community here think?
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damn that sucks badly. that gif is always hilarious lol. I would only file for bankruptcy to protect my house but that is just me. medical bills suck ass I had one hurt my credit when I used to be un insured they should give people at a least year to pay it off before reporting it to a credit agency they sent it to collections after maybe one month.
 
4

4112

Guest
Jesus X said:
damn that sucks badly. that gif is always hilarious lol. I would only file for bankruptcy to protect my house but that is just me. medical bills suck ass I had one hurt my credit when I used to be un insured they should give people at a least year to pay it off before reporting it to a credit agency they sent it to collections after maybe one month.
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We have no issues with our mortgage, that's why bankruptcy worries me. My wife is trying to act like bankruptcy is no big deal but, her credit is already shit because of college loans.
 
M

member 1013

Guest
Frankinmetz said:
We have no issues with our mortgage, that's why bankruptcy worries me. My wife is trying to act like bankruptcy is no big deal but, her credit is already shit because of college loans.
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Tell her your Jewish friend said to knock it off

You’re welcome
 
Wild

Wild

Zi Nazi
Admin
Dec 31, 2014
85,184
123,556
Frankinmetz said:
We have no issues with our mortgage, that's why bankruptcy worries me. My wife is trying to act like bankruptcy is no big deal but, her credit is already shit because of college loans.
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Yeah, that's the concern. You file it and both of your credit scores will be fucked for 5-7 years. I would avoid if it all possible brother. I think you can get that $8k erased altogether, or damn close to it anyway. And the car is a no brainer. Sell it, done.
 
4

4112

Guest
Wild said:
Yeah, that's the concern. You file it and both of your credit scores will be fucked for 5-7 years. I would avoid if it all possible brother. I think you can get that $8k erased altogether, or damn close to it anyway. And the car is a no brainer. Sell it, done.
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I agree, I'm in the mind set of if I have to, I'll get a part time job to help pay all this off.
 
Thuglife13

Thuglife13

✝👦🍕🍦🍩
Dec 15, 2018
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Wishing you the best homie! Had some fam go through similar situations and they're all better off now...

 
mysticmac

mysticmac

First 1025
Oct 18, 2015
15,090
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Listen to Splinty. The car is gone. Move on. Hospitals are the most forgiving debt collectors on the planet. Just don't ignore them. Maintain open communication. They'll work with you to set up an affordable payment plan. You'll be alright.
 
mysticmac

mysticmac

First 1025
Oct 18, 2015
15,090
17,799
Splinty said:
The prices are all fake. They are used to bill insurance companies which negotiate down rates. No one is negotiating on your behalf if you don't have insurance but I'm not sure your situation.
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Welcome to FAIR Health

Welcome to FAIR Health
www.fairhealthconsumer.org www.fairhealthconsumer.org

This is a decent starting point. You can find the Medicare prices hospitals charge for your procedure in your area. If your charges are more than that, you can being to negotiate down. Also make sure you are being charged for the correct level of aid for the treatment that was given.
 
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