Please help!

[momofonechicago]

What is the name of your state? IL

Until mid 2002 my credit was near perfect. Since then I have been laid off twice, and have been faced with an unplanned pregnancy. ( I was told I was unable to conceive and was using birth control).

The relationship didn't work out, and I am now a single parent.

I recently received notification that I am being sued by a creditor. I am not unwilling to fulfill my contractual obligations, I simply do not have the $$ to pay them.

Once I pay my car payment, ins, childcare, and groceries, I have nothing left.

What will happen once a judgement is entered against me? Should I file BK? I don't have any assets. There is no equity in my car, which is an essential item since there is no public transportation to my place of employment. If I were to change jobs, it would only make matters worse since I would become liable to reimburse my company for educational expenses that were paid on my behalf. Not to mention, I need my medical insurance.

I'm tired of being told to quit my job and collect welfare. That is not the way I want to raise my daughter.

[Debt Guy]

Well, the last thing you should do is quit your job and collect welfare.

Bankruptcy is awfully strong measure. There is life after bankruptcy but it is not something to undertake lightly. If bankruptcy is an option, you have until October to do it before the law changes.

I take it that your last payment was in mid-2002. If so, the debt is still within the statue of limitations.

If the creditor gets a judgment, they can garnish your wages. In most states, garnishment is limited to 25% of your after tax pay. Sounds like that would be a lot for you. Judges sometimes have some flexibility for cases of hardship but you must show up in court to personally plead your hardship to the judge. Expect to be asked to prove your hardship.

You have not said how much this debt is. Bankruptcy might be an answer.

Do you have anyone who can help you? Family, friends, church, etc.

[momofonechicago]

The debt is approx $4K (before legal fees, court costs, etc). And unfortunately, my family is already helping more than they can afford to, simply by not charging me rent.

Obviously, I don't take this lightly, nor do I consider BK an "easy out". I am barely making ends meet as it is....and if a court approves a wage garnishment, my concern is the impact this will have on my daughter. I'm already dependent on my family for housing, and to some extent food and clothing.

[Debt Guy]

$4000 is an awfully small amount for bankruptcy -- sort of like using an sledgehammer to kill an ant.

But, if they garnish and if you can't deal with the garnishment, then BK is your only relief. Just be sure to do it before October.

Hang in there and don't give up. This too shall pass.

If you need encouragement or have a specific question, you can always send me a private message or an email. Bless you.

[qumara]

Hi there..... First of all you need to calm down & take a deep breath. I know this may seem frustrating, but there are some things you can do to get out of this mess.... Second, can you give alittle more info about the debt? Is it a CC debt, loan etc etc....with that info, perhaps we may be able to help you with your situation alittle better!!! For instance:

1. Who is the creditor?
2. When did the debt occur? (Knowing this "could" be of a big help in establishing SOL) Statue of Limitations
3. Again, is it a Credit Card, Auto Loan, etc etc?

[Veronica1228]

Originally Posted by qumara

Hi there..... First of all you need to calm down & take a deep breath. I know this may seem frustrating, but there are some things you can do to get out of this mess.... Second, can you give alittle more info about the debt? Is it a CC debt, loan etc etc....with that info, perhaps we may be able to help you with your situation alittle better!!! For instance:

1. Who is the creditor?
2. When did the debt occur? (Knowing this "could" be of a big help in establishing SOL) Statue of Limitations
3. Again, is it a Credit Card, Auto Loan, etc etc?

I don't mean to be rude, but what is the relevance of your questions? The OP states that her credit was fine until 2002. Granted, that is a bit vague, but since the SOL for debt is anywhere from 5-10 years in IL depending on the type of credit extension, it doesn't really matter. It definitely would not be past the SOL, nor would it matter what type of debt this is.