USMCBillsFan Posted March 27, 2015 Share Posted March 27, 2015 Since I retired from the Marines I've struggled financially. I have an ex wife that gets half my retirement or this wouldn't even be an issue but I have some pretty large debts that I cannot pay due to my job. I've never been late on any payments up until the last 3 or 4 months and now have things going to collections and simply am not making enough money to pay everything. I'm considering filing bankruptcy but my pride is making it difficult. I work as a finance manager on a 100% commission basis at a car dealership and I know there are a lot of smart people on here. Please keep non-constructive comments to yourself. This isn't something I'd normally put on a message board but this place is more like family (dysfunctional maybe) but still family. I'm looking for support and advice. Has anyone filed in NY before? Or known someone who has? Is the process difficult? I know it'll hurt my ability to get any loans or anything for a while but I have everything I need right now. Any insight would be appreciated. Link to comment Share on other sites More sharing options...
The Poojer Posted March 27, 2015 Share Posted March 27, 2015 I am constantly struggling financially, my only piece of advice is to put your pride aside, do what you need to do to make your life better...everyone has some sort of issues, don't feel like you are alone, we all have something we are dealing with. Pride gets in the way of asking for help and trying to wrap your arms around your problems. Once you do that, you can start working toward reducing your daily stress. Link to comment Share on other sites More sharing options...
Gugny Posted March 27, 2015 Share Posted March 27, 2015 (edited) Since I retired from the Marines I've struggled financially. I have an ex wife that gets half my retirement or this wouldn't even be an issue but I have some pretty large debts that I cannot pay due to my job. I've never been late on any payments up until the last 3 or 4 months and now have things going to collections and simply am not making enough money to pay everything. I'm considering filing bankruptcy but my pride is making it difficult. I work as a finance manager on a 100% commission basis at a car dealership and I know there are a lot of smart people on here. Please keep non-constructive comments to yourself. This isn't something I'd normally put on a message board but this place is more like family (dysfunctional maybe) but still family. I'm looking for support and advice. Has anyone filed in NY before? Or known someone who has? Is the process difficult? I know it'll hurt my ability to get any loans or anything for a while but I have everything I need right now. Any insight would be appreciated. I was in a similar situation after I lost my job. I dipped into my 401K to pay all of my debt down to zero (except for the house) and now I owe Uncle Sam a lot of money. I braced myself for the IRS hit, but it still hurts. With you being retired military, and based on your comments, you likely don't have any kind of 401K/IRA to dip into. But if you do, and you're under 59 1/2 years old, it might be an option - but pricey in the end. If bankruptcy is the best solution for you, then don't let your pride get in the way. The burden being lifted will be a healthy thing. Either way, in the end, it'll work out for you. I wish you the best. Edited March 27, 2015 by Gugny Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2015 Share Posted March 27, 2015 Have you thought about getting another job? Having a BK on your credit could hurt you in getting employment in the future. Lot's of companies run credit reports. I'd look for additional part time work first. Link to comment Share on other sites More sharing options...
Gordio Posted March 27, 2015 Share Posted March 27, 2015 I have a friend that filed for bankruptcy 3-4 years in NYS. He got everything discharged but I have over recent years heard that the courts are not so willing to discharge unsecured debt like they used to. LIke I said that was 4 years ago & he seems to be doing okay, just got a car loan a few months ago. I work in credit but on the commercial side but look at credit reports. Bankruptcies do hurt you but if clears everything it maybe the way to go. Just plan on paying cash for everything for the next 3-5 years, which isn't necassarily a bad thing. More people should follow that advice, myself included. Eventually your credit score will rebound & I think the bankruptcy stays on your report for 7 years. But honestly, especially is your paying every month a lot of high interest rate credit cards, your never going to get out of it. Those things rack up interest & it should be illegal what some of these credit card companies are able to do. I compare it to loan sharking. Unless you have access to a lump sum payment like Gungy had your only way out maybe to file bankruptcy. I would definately at the very least call a bankruptcy attorney & see what your options are. Anyways, good luck to you, I hope everything works out. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2015 Share Posted March 27, 2015 I have a friend that filed for bankruptcy 3-4 years in NYS. He got everything discharged but I have over recent years heard that the courts are not so willing to discharge unsecured debt like they used to. LIke I said that was 4 years ago & he seems to be doing okay, just got a car loan a few months ago. I work in credit but on the commercial side but look at credit reports. Bankruptcies do hurt you but if clears everything it maybe the way to go. Just plan on paying cash for everything for the next 3-5 years, which isn't necassarily a bad thing. More people should follow that advice, myself included. Eventually your credit score will rebound & I think the bankruptcy stays on your report for 7 years. But honestly, especially is your paying every month a lot of high interest rate credit cards, your never going to get out of it. Those things rack up interest & it should be illegal what some of these credit card companies are able to do. I compare it to loan sharking. Unless you have access to a lump sum payment like Gungy had your only way out maybe to file bankruptcy. I would definately at the very least call a bankruptcy attorney & see what your options are. Anyways, good luck to you, I hope everything works out. Wouldn't you rebuild your credit quicker if you used credit cards? Or is that a fallacy? Link to comment Share on other sites More sharing options...
Keukasmallies Posted March 27, 2015 Share Posted March 27, 2015 Any possibility of assistance from a group(s) offering to help ex-military in your area--assistance in the form of building a plan to work through the debt load, get a solid job, etc.? Barring that, assistance from debt counseling agency or some similar source of advice. It's important to know you're not alone in the issue and that there are individuals and groups with ideas for you to consider. Keep your eye on your objectives, let others in to help you, don't even think of giving up. Link to comment Share on other sites More sharing options...
USMCBillsFan Posted March 27, 2015 Author Share Posted March 27, 2015 Have you thought about getting another job? Having a BK on your credit could hurt you in getting employment in the future. Lot's of companies run credit reports. I'd look for additional part time work first. This is a concern too. The job I have would be fine and I could survive if I didn't have the debt hanging over my head. I wouldn't lose it in filing. I've also thought about another job but I don't have time. I'm already working 50+ hours here. I'd work 3 if I could to avoid filing but it's just not feasible. It's not easy for me to ask for help. As far as building credit. I wouldn't file on my car so continuing to pay that off will build me back up fairly quickly. And in reference to the debt counseling, I know how to handle my money. It was just a nasty divorce that forced me to live on credit cards for a while and that's what buried me. Thanks all for the advice and concern. Link to comment Share on other sites More sharing options...
DC Tom Posted March 27, 2015 Share Posted March 27, 2015 (edited) This is a concern too. The job I have would be fine and I could survive if I didn't have the debt hanging over my head. I wouldn't lose it in filing. I've also thought about another job but I don't have time. I'm already working 50+ hours here. I'd work 3 if I could to avoid filing but it's just not feasible. It's not easy for me to ask for help. As far as building credit. I wouldn't file on my car so continuing to pay that off will build me back up fairly quickly. And in reference to the debt counseling, I know how to handle my money. It was just a nasty divorce that forced me to live on credit cards for a while and that's what buried me. Thanks all for the advice and concern. One thing you can consider, that I've done myself, is contacting each of your credit card companies and trying to negotiate better payment terms. It depends on your overall debt level, of course (if you already have to pay twice what you can afford, cutting that by a third doesn't help). My wife maxed out 5 credit cards several years ago, without telling me (she just can't handle credit - can't distinguish it from cash). I was able to negotiate two of them down to 2% APRs (Discover Card was awesome about that), and consolidated the other three at 9%, which saved close to a thousand a month, which was the difference between bankruptcy and solvency. So I don't know how over-your-head you are, and I don't know how much you could do with accounts in collection. But it's worth a shot. Edited March 27, 2015 by DC Tom Link to comment Share on other sites More sharing options...
Gordio Posted March 27, 2015 Share Posted March 27, 2015 Wouldn't you rebuild your credit quicker if you used credit cards? Or is that a fallacy? Yeah you would but for the first couple years after he files bankruptcy he is not going to be able to get a credit card. Link to comment Share on other sites More sharing options...
DC Tom Posted March 27, 2015 Share Posted March 27, 2015 Yeah you would but for the first couple years after he files bankruptcy he is not going to be able to get a credit card. Except a low-limit, cash secured one. They'll give those to anyone (including pets). Knew a guy once with no credit history who got two of those, put a balance on one, then just kept transferring the balance between cards. In about a year, he had a credit score above 800. Link to comment Share on other sites More sharing options...
plenzmd1 Posted March 27, 2015 Share Posted March 27, 2015 One thing you can consider, that I've done myself, is contacting each of your credit card companies and trying to negotiate better payment terms. It depends on your overall debt level, of course (if you already have to pay twice what you can afford, cutting that by a third doesn't help). My wife maxed out 5 credit cards several years ago, without telling me (she just can't handle credit - can't distinguish it from cash). I was able to negotiate two of them down to 2% APRs (Discover Card was awesome about that), and consolidated the other three at 9%, which saved close to a thousand a month, which was the difference between bankruptcy and solvency. So I don't know how over-your-head you are, and I don't know how much you could do with accounts in collection. But it's worth a shot. this sounds reasonable to me and very good advise...but i dont know. My gut would be better to file that to hit your retirement savings, but again i have no idea how that works and which one is better. Link to comment Share on other sites More sharing options...
Gordio Posted March 27, 2015 Share Posted March 27, 2015 Except a low-limit, cash secured one. They'll give those to anyone (including pets). Knew a guy once with no credit history who got two of those, put a balance on one, then just kept transferring the balance between cards. In about a year, he had a credit score above 800. Yep those are the ones he will be able to get at first. That is pretty smart because it looks like your paying off the balance each month. Link to comment Share on other sites More sharing options...
DC Tom Posted March 27, 2015 Share Posted March 27, 2015 this sounds reasonable to me and very good advise...but i dont know. My gut would be better to file that to hit your retirement savings, but again i have no idea how that works and which one is better. My personal view is that burning through retirement savings is mortgaging your future, and not constructive. Then again, it would be considered an asset, and potentially subject to being liquidated in a bankruptcy filing anyway. I'm not really sure. That's really a question for a bankruptcy lawyer. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2015 Share Posted March 27, 2015 My personal view is that burning through retirement savings is mortgaging your future, and not constructive. Then again, it would be considered an asset, and potentially subject to being liquidated in a bankruptcy filing anyway. I'm not really sure. That's really a question for a bankruptcy lawyer. No retirement plans are protected from bankruptcy. There have been some interesting cases recently regarding inherited IRA's not being protected. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted March 27, 2015 Share Posted March 27, 2015 A few years ago I settled some major credit card debt for around 45 cents on the dollar. Can you use a tax refund or something to try and settle some of the credit card debt? Link to comment Share on other sites More sharing options...
DC Tom Posted March 27, 2015 Share Posted March 27, 2015 No retirement plans are protected from bankruptcy. There have been some interesting cases recently regarding inherited IRA's not being protected. I knew you'd know the answer. Link to comment Share on other sites More sharing options...
The Poojer Posted March 27, 2015 Share Posted March 27, 2015 Please tell me you aren't assuming he has the CORRECT answer.... I knew you'd know the answer. Link to comment Share on other sites More sharing options...
DC Tom Posted March 27, 2015 Share Posted March 27, 2015 Please tell me you aren't assuming he has the CORRECT answer.... Of course not. I don't make assumptions. But he's a financial advisor, so I'd defer to him until evidence demonstrates he's wrong. Link to comment Share on other sites More sharing options...
Flutie Flakes Posted March 27, 2015 Share Posted March 27, 2015 Sorry to hear about your financial difficulties. Without knowing specifics, I would recommend (as DC Tom stated) to reach out to the credit card companies first. Explain to them your situation and in most cases, I believe they will make every effort to work with you. The key is communication. I have been a banker for 22 years and know that we make every effort to work with someone as long as the lines of communication are there and the person abides by any payment arrangements that are mutually agreed upon. We have reduced rates, forgiven fees and come up with terms that a borrower can afford so that the loan can be repaid in full. However, I work for a smaller community bank and know that some of the larger banks and credit card companies may not be as helpful or understanding. I would advise against settling with them for cents on the dollar unless this is your ONLY option. See if you can work out a mutually agreed upon repayment schedule first. They would rather work with someone that have to write off all or some of the debt. If that doesn't work, you should seek out a reputable bankruptcy attorney and review your options for BOTH Chapter 13 and Chapter 7 bankruptcy filings. In the eyes of future creditors, a 13 is not as adverse as the 7 (liquidation). With a 13, you would work through a bankruptcy trustee that would divide payments to all of your creditors until everything is satisfied and any assets that you may have are typically protected. Again, these plans vary depending on your situation. Steer clear of "for profit credit counseling" agencies. They charge to settle your debts and for the most part are complete rip off artists. You can do the legwork yourself and use the savings to apply towards the debts that you have incurred. If it is any consolation, I was in your situation while I was on active duty in the Navy. I ran up 4 credit cards living the life in California. I did not file bankruptcy as I had a TS clearance and would have lost it if I had filed. However, I reached out to the credit card companies and came up with repayment plans. I paid more money on the credit card with the highest rate and minimum payments on the other cards. Once the card was paid off, I moved on to the next highest rate and so forth. To make a long story short, it took me 2.5 years and it was painful, but I am a better person for it today and my credit was not effected. Best of luck to you USMC Brother! Link to comment Share on other sites More sharing options...
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