Bankruptcy/pay?????

[Willies2nd]

What is the name of your state?CaliforniaWhat is the name of your state?
Up until July 2004 I was working full time (paid very well) and was meeting all my obligations. In July 2004 my health took a nose dive, I have Rheumatoid Arthritis and it settled into my lungs causing me to have a continous case of pneumonia. After getting out of the hospital in July 2004, I was able to work part time and collect State disabilty, and continue to meet my obligations. In February of 2005 I could no longer handle working and had to quit. I was just approved to collect Social Security disability $752.00 a month. I might be receiving a check for back pay approx. $5,200.00
One of my obligations is being paid by insurance I took out when I obtained the obligation. I have a student loan that since I am disabled will be forgiven. My problem is this, my husband wants to me to take the back pay and pay down as many as my obligations as possible which would be fine, but $5,200.00 is only going to put a small dent in them. All of my obligations were incurred before my husband I were married in January 2005. I owe Speigal $2,300.00 of which is $600.00 in interest and late fees due to the fact that while I was in the hospital in July 2004 I missed a couple of payments..so they tacked on over the limit fees each month! I owe on 4 credit cards, as well as collection agencies that have several doctor bills which I have been making a $25.00 a month payment. First and foremost though I owe on back Federal and State taxes which HAS to be paid first. Between the two, I owe approx $2,100.00.
My husband brings home approx $1,600.00 a month and we recieve free rent, with his money we pay our living expenses, medication, and of course he has his own obligations. I want to file bankruptcy, he says no, because if I do and if we stop getting free rent then we will have to qualify and with a bankruptcy I will not be able to meet the criteria, which is true...I have 2 questions...how do I negotiate with my creditors, I know I can't do it until I have my money in hand or do you think because of the circumstances that a future creditor might not hold it against me...which I don't believe for a minute...please your help is greatly needed!!
Sincerely,
Willie

[Ladynred]

I want to file bankruptcy, he says no, because if I do and if we stop getting free rent then we will have to qualify and with a bankruptcy I will not be able to meet the criteria, which is true.

I'm sorry, I must ask this.. meet WHAT criteria to rent ? If you're referring to credit checks, yes, it could be a problem. However, there are usually a lot of privately owned properties rented by the owners who do NOT do credit checks. In my experience, you tend to get a bigger place for the same or less money renting from a private party too.

If you were to file bankruptcy, the taxes may not be dischargable, it all depends on how old they are. If they aren't, then paying them off with your disability benefit would be a good idea. The rest of the money should be used for necessities, not paying off debts, not before you file BK anyway.

AS for how to settle, I suggest you head for [url]www.creditinfocenter.com[/url]. We have a forum there just on debt settlement, lots of info there on how to get started.

[Willies2nd]

California.
Thank you for your response. Yes the criteria I was concerned about was the credit check for renting an apartment....but as I think about it logically, my record will show that I paid all my obligations up to the point where I had no more money. I have gotten to the point where I am tired of fighting this and I have to just take the road that will benefit himand I. Him being stuck with my obligations when he should not have to is not an option. I am going to speak to an attorney, since I posted the first post alot of things have already changed!

I have 1 more check coming in from state disability and then the next monies I will recieve will be in Septmeber in the amount of $592.00. I am going to have to appeal for any back pay from Social Security so there will be no lump sum payment...so by this happening I no longer have many options, and the need to file bankruptcy will be a reality. I will look at the website you suggested. Thank you for all your help.
Sincerely,
Willie

[Ladynred]

Good Luck.

There are plenty of other options for renting besides apartment complexes and commercially run rentals. Peruse thru your local paper's rentals, you should see private owners who are looking to rent and who are not suing a real estate office to manage their property.