Ziay!

Freetobeme

I have medical bills that are out of control. They are threatening to put a lein on my house that I just bought last year. I live by robbing Peter to pay Paul. Well, Paul is broke now and I can't even aford my medications or food shopping. I understand that I will have to file a Chapter 13 because someone thinks I make too much money. When the taxes alone on my check are over $600.00 that leaves me very little. I am also thinkin gof dropping out of my 401k program for a little bit of time. No money left there to be borrowed, just paid back.

golden1972

I'd go to a bankruptcy trustee and talk to them to know your options.

PacificNorthWest

I would not drop out of the 401K. I know this sounds silly but you need to sit down, make a list of every dept you have no matter how large or small. List them in order of importance. Contact each and every one of them and explain your circumstance and ask if you can make interest only payments for a period of a few months. During that period try to pay off the smaller of the debts. That will give you more cash to pay on the others. Repeat your request and try and extend the interest only period. Make sure you tell your creditors that you used the last period to pay off some smaller bills and you are going to continue to work at paying off more during the second interest only period until you can get back on schedule with regular payments.

During the interest only period walk to work or take public trasportaion in order to save money. Vehicles are expensive to operate. If you have an expensive newer auto, see if you can trade down to an older model with smaller payments. Let your creditors know that you are doing these things in order to get them paid.

Take lunch and forego restaurants.

Think out of the box and you will find ways to save money. Make sure that bankruptcy is absolutely the last thing that you consider. Your credit will be ruined for the next ten years and then it will take another five to rebuild it.

I hope that this helps. I'ver been there and these are some of the things that I did to work my way out. I also took a part time job working on weekends and used that money to buy groceries etc. so I had more money to pay bills.

You can do it. Once you get caught back up, pay off your credit cards and burn them. You can really live without them I promise. I used to be a card junky and got rid of all of them and now when I purchase something I pay cash! You can too.

Matthew L

It all begins with a budget. You will find extra money that you didn't know you had. I began using this site a few months ago and have found it to be very helpful.

Take a moment to check it out. Your account is free, so that helps.

pamela d

see lf you can get a loan so you can pay so much every month and Bankruptcy is not the answer cause you will never be able to establish credit again. this is where lt gets you