Thread: Job Offer Question

RE: soldier & manic

(I'm 31)

I've thought about debt consolidation, but I keep reading about them being scams. Second thing is if I do it, then I'm laid off again in a few months I'll be back to not being able to afford it & in the same position. I didn't have high credit card debt until I lost my job, so I'll just be back to that place again, and without the credit cards to get me through...

BTW, thanks to everyone for the comments, suggestions & well wishes. Things will turn around one way or the other

Originally Posted by busyLivin

That's the bitch of it: I already cut everything I could months ago: sold virtually anything of value I had, and am barely able to go out. I'm in a contract on my cellphone, my car is worth 4-5 grand less than I owe, my condo is about 30 grand underwater, and I have an escrow shortage now that's going to bump my mortgage up. I can't get out from any of it cleanly... Perfect storm of fucked!

Can you claim bankruptcy while employed? Being short about 500 a month, I'm afraid I will blow the rest of my savings within a couple months, leaving me with a job that doesn't pay me enough but disqualifies me for bankruptcy???

I could possibly get another job on the weekends, but I just go back to wondering if just doing the bankruptcy, clearing all of my debt & starting over makes more sense... otherwise I'll be spending 10 years trying to dig myself out of the credit card debt, and the "worthless" condo I have. I take my commitments seriously though.. I don't like bailing on the debt just because I can, but at what point do I say enough is enough...

Employment doesn't limit your bankruptcy options one bit. Chapter 7 is the way to go, especially if you have a lot of unsecured debt. That would probably give you an out for the condo, as well. Chapter 13 the court trustee takes a chunk of your paycheck to pay back creditors. And they take a HUGE chunk.

become a monk

Originally Posted by dogsoldier

Try to work with your creditors and see if you can make some arrangements. Banks really do not want to take back houses. By federal law banks are not allowed to hold property for a long time. Plus they want the cash flow. Also, they would much rather work something out than let the house go to short sale or auction. Example the guy across the street from me was underwater to the tune of 500K on his house. He went into receivership and simply walked away. The bank eventually put the house up on the auction block and only got 50K for it. You may not get anywhere at first but keep pounding on this. The mortgage people will come around.

I do not know how old you are. If you are relatively young, and you are drowning, fuck it, file for Chapter 7. Your credit will be shot for 7 years, but you will recover. You can keep your house if it is under a certain value and you sign an agreement (new promissory note) with the mortgage holder and what your state laws say. There are ways to keep things like a car and personal items. States have rules even with federal bankruptcies. For example, here in Arizona you are allowed to keep one rifle, one shotgun and one pistol when you file chapter 7. The states vary so you need to speak with someone who is a professional in this stuff. I'm just some guy who took 2 years of education law as part of my masters program. Most states or counties offer free legal clinics for people in trouble and are broke. Call the local bar association to find one in your area. Speak to lawyer about this.

Good luck, hang in there. And in the long run, it is all stuff. You can get it all back when you get straightened out.

#1 That is what I thought too, being that it is the logical conclusion. Unfortunately, this is not the attitude of the mega banking institutes in this downfall ,towards regular people, at all.
If they really wanted to work things out, half of people who got foreclosed on would be living in their houses with some kind of a deal. I looked into this quite a bit in my real estate law class last semester.
The bank is almost always going to lose money by auctioning of your house so if they really cared about cash flow they would let you stay and pay what you can, rather than "giving" the house away.

Bottom line, the big banks don't care right now. It was stated by a former employer of one of these institutes that they do not start taking customers seriously until they have around 15000 dollars in a checking account with them. Sleeeezy...

short sale the condo, better on your credit.
when I was dirt poor I sold my car and biked everywhere, a 100 dollar investement in front and back lights you save by not paying into car insurance for one month. I got into awesome shape but it meant getting up at 4 in the morning to ride so I could be somewhere at 6:30 or 7. I did this for four years as a medical student. I had to do clinicals all over the country ( south central, boston, rhode island, arizona) and I made it on just my bike and public transporation.

Originally Posted by Gissurjon

#1 That is what I thought too, being that it is the logical conclusion. Unfortunately, this is not the attitude of the mega banking institutes in this downfall ,towards regular people, at all.
If they really wanted to work things out, half of people who got foreclosed on would be living in their houses with some kind of a deal. I looked into this quite a bit in my real estate law class last semester.
The bank is almost always going to lose money by auctioning of your house so if they really cared about cash flow they would let you stay and pay what you can, rather than "giving" the house away.

Bottom line, the big banks don't care right now. It was stated by a former employer of one of these institutes that they do not start taking customers seriously until they have around 15000 dollars in a checking account with them. Sleeeezy...

Did you mean to type 150K, or is it really 15K in your opinion?

They called me back last week with an offer of 35 to start, 40 after 90 days. I turned it down just cause it was so low in comparison I didn't see anyway to make it work. Anyway, they called back today asking me to email them a counter offer... I was hoping for 40, 45 after 90... that's not much of a difference, especially if they're pursuing me after rejecting an offer. I should hear back tomorrow, but I think it's gonna work out.

Still a huge pay cut, but in this economy that's to be expected. At that price point I can just about cover all of my expenses, so no need for bankruptcy or losing my condo. It will take a while to dig myself out, but I don't mind that at all.. really happy I don't have to default on my debts.

Good to hear it, man!

Nice, hopefully they take it. Good luck!

COOL! Good luck with it.

census data shows that 30K is right around the median income males that is what most company's base their starting salaries off.

They accepted it..

Does anyone know of any reputable Debt Consolidations firms? Does that route hurt your credit report too? I have a friend who did that a while back, and his credit score is over 800 so it couldn't have hurt very much at all?!?

Just going on what my friend said, they got everything down to one low, monthly payment for a span of 10 years or something... I know it's not ideal, but just exploring the option

Take the job. Next discuss with a bankruptcy attorney. If you declare bankruptcy, it will mess your credit up for 7 years but you'll still be able to get a car loan, etc. You will just pay a higher interest rate. I sell insurance and I can't tell you how many folks file bankruptcy and within a couple of years they have purchased a home, new cars, etc.