[scatterbrained04]

I'm getting stressed out due to all the money I owe everyone between medical bills, credit cards that went to collections, and student loans. I feel pulled in so many directions. It's keeping me up at night. My anxiety is so bad right now I feel sick. I feel like I've been eating so poorly due to not having enough money to go around. Haven't paid to go out and have fun in years. Is anyone else in this boat?

[hopeless2015]

I had to file for chapter 13 bankruptcy....there was no way I could catch up my bills and my phone rang nonstop. I have to pay on this for 5 years but the calls have stopped and I'm paying off this debt. I wish it wasn't the case but there was no other way out for me

[mindwrench]

I'm in that situation now. I installed an app on my phone called Blacklist+ to keep my phone from ringing nonstop. I've been bankrupt twice before, and I'm in pretty deep again. I know all the ins and outs of being sued and all that from the last time it happened, but it's hard to not let it pile on the anxiety I'm already feeling from things.

If you don't think you'll be able to catch up your bills, look up what your exempt assets are in your state and make sure you are judgement proof before the sheriff starts decorating your front door with invitations to the court house.

[RomanJames2014]

I get so stressed by debt. I hide under my covers as if the collectors are outside pounding on my door haha.

[LucyG]

Originally Posted by scatterbrained04

I'm getting stressed out due to all the money I owe everyone between medical bills, credit cards that went to collections, and student loans. I feel pulled in so many directions. It's keeping me up at night. My anxiety is so bad right now I feel sick. I feel like I've been eating so poorly due to not having enough money to go around. Haven't paid to go out and have fun in years. Is anyone else in this boat?

I'm an accountant so let me give you some advice. Talk to your creditors and work out a payment plan with them, even if it's $10 a month. Most of them just want regular payments from the debtor, not them hiding from them as it costs a lot to send a debt to collection--you lose around half the value of the debt when you sell it to a collection agency.

[scatterbrained04]

Originally Posted by LucyG

I'm an accountant so let me give you some advice. Talk to your creditors and work out a payment plan with them, even if it's $10 a month. Most of them just want regular payments from the debtor, not them hiding from them as it costs a lot to send a debt to collection--you lose around half the value of the debt when you sell it to a collection agency.

This is what I've been trying to do, so it's nice to have some reassurance. I've been so stressed out about money I called tonight and reduced my monthly payment temporarily with one collector.

[LucyG]

Originally Posted by scatterbrained04

This is what I've been trying to do, so it's nice to have some reassurance. I've been so stressed out about money I called tonight and reduced my monthly payment temporarily with one collector.

Believe me, if you're honest and offer to make reduced payments, and keep them informed of your situation, I bet you'll be absolutely amazed at how willing they are to work with you.

[Hairball]

yes, i have been in situations like this in the past and I had to call a lawyer because the phone calls wouldn't stop. I was told to make the attempt to pay whether it would be 5 or 10 a month and they would stop calling and they did.

Also make some calls and see if u can get some free debt counselling it is out there.

[HALLIEBETH87]

Oh I'm way in debt

[fishin fool]

I have been there and its no fun. I am sorry you are going through that.

[vintagexsoul]

I had substantial student loan debt and decided to declare Chapter 13 Bankruptcy because I was being threatened by legal action. That was my solution!

[bizi]

Originally Posted by vintagexsoul

I had substantial student loan debt and decided to declare Chapter 13 Bankruptcy because I was being threatened by legal action. That was my solution!

I thought that you could not declare student loan as debt? that could be written off.
we will be debt free in 7 years.
bizi

[vintagexsoul]

It depends on whether or not they are federal or private loans. All I can say is that my lawyer worked something out for me and I don't have to worry about my student loans for 5 years.

I filed for bankruptsy but I've since found out about 'credit proposals' which would have been much better.

There should be credit counselling agencies in the US I assume. Most are free of charge as they are opperated by volunteer financial professionals. They are able to counsel you. They are great at advocating on your behalf - like contacting your creditors and securing better rates. They can explain to you what is involved in Credit Proposals and/or bankruptsies.

I only wish I had turned to one of these programs.

[BeyondtheRainbow]

If you are on SSI/SSDI you can get federal student loans forgiven. It's actually an easy process, just one form and something your pdoc fills out. Once they approve it (the hard part) you have 3 years of monitoring where once a year you send in a form saying you haven't made more than a certain amount of income through work. At the end of the 3 years it is all done unless you take out another loan. It does create a tricky tax situation the first year but after that it's nothing. I would have had to file bankruptcy a long time ago if it weren't for that program.

[BipolaRNurse]

Originally Posted by BeyondtheRainbow

If you are on SSI/SSDI you can get federal student loans forgiven. It's actually an easy process, just one form and something your pdoc fills out. Once they approve it (the hard part) you have 3 years of monitoring where once a year you send in a form saying you haven't made more than a certain amount of income through work. At the end of the 3 years it is all done unless you take out another loan. It does create a tricky tax situation the first year but after that it's nothing. I would have had to file bankruptcy a long time ago if it weren't for that program.

This only works if you've been declared totally and permanently disabled. Even so, the student loan people like to fight and they do not go down easily. Also, these debts cannot be discharged in bankruptcy so you will have to deal with the loans sooner or later.

Take it from me, the worst thing that can happen to a debtor is to default on student loans---it's even worse than having a car repossessed or racking up medical bills you can't afford. It torpedoed my credit record and for a while there I couldn't get ANY credit whatsoever. Fortunately I qualified for a program that allowed me to pull my loans out of default with payments I could afford, and now I'm paying them back, slowly but surely. I'll never pay them off before I die, so I don't worry much about it. And if at some point I'm told I'm disabled forever, I will definitely apply for loan forgiveness.

The best part of doing this is, of course, not having debt collectors harassing you every day. Plus you have the satisfaction of having faced it head-on and done something to give you peace of mind.

[BeyondtheRainbow]

Originally Posted by BipolaRNurse

This only works if you've been declared totally and permanently disabled. Even so, the student loan people like to fight and they do not go down easily.

It worked fine for me. No fighting and my SSDI paperwork plus whatever my pdoc said was all it took. I think it was only a matter of weeks. That was 5 years ago though so maybe they made it harder? Mine were officially cancelled about 2 years ago. Maybe I'm considered totally and permanently disabled? I don't know.

I wasn't trying to spread mis-information; this truly did work easily for me.

Take it from me, the worst thing that can happen to a debtor is to default on student loans---it's even worse than having a car repossessed or racking up medical bills you can't afford. It torpedoed my credit record and for a while there I couldn't get ANY credit whatsoever. Fortunately I qualified for a program that allowed me to pull my loans out of default with payments I could afford, and now I'm paying them back, slowly but surely. I'll never pay them off before I die, so I don't worry much about it. And if at some point I'm told I'm disabled forever, I will definitely apply for loan forgiveness.

That would be so hard. My payments on my loans were really high because I had to borrow grad school, including living costs. Plus I had some loans from undergrad. If I'd had to make student loan payments out of my social security I would have had to give up eating, especially during the year I was hoping to keep my home and had to pay my mortgage.

My biggest problem right now is medical bills. I qualify for medicaid to cover a big chunk of them and somehow they aren't being billed. So every month I call and politely demand they submit the claim already. I know this is going to wind up in collections and it's not my fault. If my bill had been a little higher I could have gotten 0% financing but I was to borderline so I just have to keep making payments, keep pestering them and hope that they don't send it to collections since I'm making big payments every month. At this rate they'll owe me.

[BipolaRNurse]

Medical debt can be discharged in bankruptcy. If your payments are too large, you might try negotiating them down; otherwise you may want to consider a chapter 13 or even a chapter 7. Only downside to that is if you run up more doctor/hospital bills (should you not qualify for Medicaid at some point). Are you receiving Medicare yet? It doesn't cover all medical expenses but if you can get Medicaid along with it, you're in good shape.

[scatterbrained04]

Originally Posted by BipolaRNurse

Medical debt can be discharged in bankruptcy. If your payments are too large, you might try negotiating them down; otherwise you may want to consider a chapter 13 or even a chapter 7. Only downside to that is if you run up more doctor/hospital bills (should you not qualify for Medicaid at some point). Are you receiving Medicare yet? It doesn't cover all medical expenses but if you can get Medicaid along with it, you're in good shape.

No I have private insurance with a high deductible. Hence the medical debt. No SSI/SSDI or anything either. I think I'm doing ok enough not to have to file bankruptcy. My student loans have been going by mostly unpaid. I probably only pay about 5 or 6 months out of 12, unfortunately. Usually call for a forbearance when they start threatening to garnish my wages. Hopefully I'll do better next year with them. I'm looking at a probable pay raise for January and my vehicle will be paid off sometime next year too. It all just feels never ending! If I wasn't a single parent, I'd get a second job.

[mindwrench]

I fill out a form online once a year, and my student loans are in good standing with no payments required. I don't remember the name of it, but it is based on my income. I know that student loans are th last thing you want to get sideways on, they can take your tax return if you have one, suspend your professional license if for example you are a nurse or doctor, and I think i read somewhere they can suspend your drivers license.

[boogiesmash]

Originally Posted by scatterbrained04

I'm getting stressed out due to all the money I owe everyone between medical bills, credit cards that went to collections, and student loans. I feel pulled in so many directions. It's keeping me up at night. My anxiety is so bad right now I feel sick. I feel like I've been eating so poorly due to not having enough money to go around. Haven't paid to go out and have fun in years. Is anyone else in this boat?

That was one of the sources of my depression. One day I cried cause I kept on being negative every month and this is with a credit counseling plan. So with advice I got from someone here I decided to file for bankruptcy. Biggest relief off of my shoulder. I'm paying the lawyer every month till his fee is due and then he process starts but it was a big relief. And you aren't screwed forever. Open yourself a secured line of credit after your bankruptcy clears then start building your credit back up. Person who gave me advice was able to buy a home 3 years after the bankruptcy.