Should I or shouldn't I?

[sogwap]

Texas. I am in dire straights. I don't have a job, I don't have any money saved and I have debt exceeding 100k. It's a long story, but two months ago, the New York State government levied my accounts. They took all I had from my online checking and went into my active checking to the point that I was overdrawn and had FIVE overdraft charges. My bank gave that back to me but the tax levy has not yet been released for that account. And my bank charged me a $100 non-refundable charge and are still holding whatever was in there at the time the state levied my account. It's a long story and the levy is from 2004. It was my husband that withdrew his 401k (140k) and never paid taxes on it. He used it to party and abandon us. Since we were still married that year, they came after me. They sent a notice to his PO box, but I never got it. (I got it later when I addressed the matter). I'm in Texas now. Anyway, I did the "innocent spouse" form, etc. and now have to make sure I do it with the Federal government because I'm sure that's next. There's no money so I'm sure they'll go after my home.

Back to my main issue. I was considering bankruptcy because I lost my job and so far after 27 applications, no one will hire me. I've done some pet sitting and whatever I could to keep afloat but it's BAD. I own my home and my land but I have a huge debt in cc's I put my land loan onto a low interest for the life of the balance credit card and I used money to live on from cc's too. Only I was at least smart enough to use the checks they send with the same offer. Low interest 2.99% for the life of the balance. BUT of course after never paying late in my life, this time I was broke and couldn't. My interest should have gone up to 29%, but only went to 14% because of my great history. Still outrageous.

I told a friend that has had similar issues that I was considering bankruptcy, but he told me to just NOT pay the cards if I couldn't because I own my house and land. What can they get from someone who has nothing. My credit is already trashed after being at the top top for as long as I've had credit.

What should I do? Claiming bankruptcy sounds complicated and scary. Just not paying does too, but what can I do. I can't pay. I can barely pay my regular bills, but with only those, I can get by.

 

[bigun]

Can't help with the first part of your post.

As a Texan, you enjoy fabulous bankruptcy protections.
I'd suggest two things. Put on a full court press to find any sort of job. WalMart, McDonalds-doesn't matter. You need income. Bk will do you no good unless, you can support yourself post bk.
See a bk lawyer. Most give free or lowcost initial consultations.
A couple of things may or may not apply to you. Tx. has an unlimited homestead exemption but, if you bought the house fewer than 1415 days prior to filing your equity is capped at $125K. Also, if you have lived in Tx. for less than 2 years you can't use Tx. bk exemptions.
Finally, when did you do the balance transfer to the cc that paid off your property? If it was in the past 6 months or so the creditor may object.
You may have a routine run of the mill bk or, you may have some issues. Get to lawyer and have all of your options explained.

 

[sogwap]

Can't help with the first part of your post.

As a Texan, you enjoy fabulous bankruptcy protections.
I'd suggest two things. Put on a full court press to find any sort of job. WalMart, McDonalds-doesn't matter. You need income. Bk will do you no good unless, you can support yourself post bk.
See a bk lawyer. Most give free or lowcost initial consultations.
A couple of things may or may not apply to you. Tx. has an unlimited homestead exemption but, if you bought the house fewer than 1415 days prior to filing your equity is capped at $125K. Also, if you have lived in Tx. for less than 2 years you can't use Tx. bk exemptions.
Finally, when did you do the balance transfer to the cc that paid off your property? If it was in the past 6 months or so the creditor may object.
You may have a routine run of the mill bk or, you may have some issues. Get to lawyer and have all of your options explained.

Thanks so much for your advice. I had heard that Texas was one of the better places to claim bankruptcy.

I will hit the pavement. I've already tried Walmart and McDonalds, etc. etc. but no discouragement here. I just keep trying.

I filed for the homestead exemption a year after I bought the house, so that's that with that. No biggie though. But I have lived in Texas for over 2 years.

I did the balance transfer shortly after I got the loan. So that was at least a year ago, no less though. So that's a plus.

I will get to a lawyer asap. I have already looked into them so I have names already.

Thanks again. This REALLY helps.