I feel like a character in Warren Zevon’s song “Lawyers, Guns and Money”. I got myself into a jam and am not sure how to proceed. Not looking for legal advice here, actually trying to figure out where to start i.e. which type of lawyer do I need (multiple problems, could be lawyers plural for all I know).
A little background:
I have managed to run up an enormous credit card debt (hangs head in shame, although I know this is happening all over the country right now). I was laid off in Dec. 2007 and have not worked steadily since then. You’re thinking, how about unemployment, right? Well, I am considered partially disabled (bipolar) and receive a very small amount of social security disability each month so technically I was not eligible for unemployment benefits. I have had many interviews and got great feed-back until they get to the point where they check my references. Apparently my past two employers are not giving me glowing reviews and I really feel like I will not be hired by anyone at this point because of this. I have very little money saved and a tiny amount of stock.
Mr. beckwall and I have been living apart for quite some time now, although we remain on cordial terms. I have brought up the subject of bankruptcy with him and he is vehemently against it. So I have decided that I may need to divorce him and file bankruptcy for just myself. I own my car, no payments. I live in a condo whose mortgage is paid for by Mr. beckwall and I pay the home owners fees and all other monthly bills. This does not leave me enough money to pay my minimum payments on the credit cards. I have been cashing in stock to make up the difference but that will only last so long.
I am not young. I never thought I would be in this situation but here I am. It is too late to switch careers and I live in a small market where jobs are difficult to come by, even a job at minimum wage would not pay the bills.
So - do I talk with a divorce lawyer or a bankruptcy lawyer first? I don’t want Mr. beckwall’s credit rating affected by this. The credit cards are in my name. I got them back when I was making a decent wage, but between the bipolar and 2 large surgeries (20% co-pay by me, over $50,000) I am truly screwed.
Thank you for your input and for not calling me a bad person, believe me I already have that speech down pat inside my head. I can’t sleep, eat or enjoy any part of life anymore. All I think about is money and the future. I just wasn’t sure which type of lawyer would be able to help me. I know this will be a long process and I am just trying to lessen the pain and agony of it as much as possible.
Call legal aid. You might be eligible to receive help from legal aid, especially if debt collectors are trying to collect your SS benefits. They don’t typically do divorce or bankruptcy, but they will should be able to provide you with, at a minimum, contact information for other free or low-cost services to help with your other legal problems.
If for some odd reason they can’t help you at least find a lawyer, call your local bar association and they will help.
First, I want to say that the situation you are in sucks. Its hard and it’s scary but I don’t think you are even close to being bankrupt.
I am on my mobile right now so I can’t write much in detail at the moment but I highly recommend that you check out Dave Ramsey’s Total Money Makeover plan. Check it for free at the library and give it a read. I also recommend you search this message board for Ramsey topics and Google info on his “Baby Steps” for getting out of debt.
I am not a huge fan of Ramsey’s philosophical or political beliefs, but his plan is great and has really been working well for my family.
Also divorce won’t make any difference regarding what you owe as a couple.
You may want to talk with a professional financial adviser–the kind you pay by the hour, not the kind that works on commission. The divorce lawyer and the bankruptcy lawyer may see everything as a nail because they have a hammer. In other words, they can probably get you bankrupt and divorced, but may not be working on your overall problem. A financial advisor can look at the big, financial picture and help you consider more options. They may also have worked with some local attorneys and be able to make recommendations.
See a Bankruptcy attorney first. Contrary to what has been stated here, many are adept at counseling people regarding their debts and do not apply the hammer just because they know how to file a Chapter 7.
Financial planner won’t be able to do diddly for you other than tell you “sock away some money and pay your debts slowly but surely”. Whoopeee. I just saved you a few bucks.
And you’re not a bad person - far from it.
(edit: you need an actual good bankruptcy practitioner. don’t call up the “$500 dollars to get your Chapter 7 started!” guys - they will shuffle you into filing without a modicum of counseling)
First off, please do not think you are a bad person because you may need to file for bankruptcy relief. Yes, our capital markets work because people take the obligation to repay their debts seriously; nevertheless, lenders know that a certain proportion of their borrowers will not be able to do so. Lenders incorporate this in their business models, and nobody at the bank will be going to the poorhouse if you file. Indeed, a classmate of mine who is a bankruptcy practitioner tells me his clients start getting credit card offers soon after they file; the banks know that earlier credit card obligations will be discharged and that there are limits on serial bankruptcies. Accordingly, it is hard to feel much sympathy–or even neutrality–toward credit card companies.
Your local legal aid office is a good place to start. Although each organization has their own eligibility rules, if I had to hazard a guess, I would think you would be eligible. If not, they may be able to assist you in finding affordable representation.
Finally, I would talk to a divorce and bankruptcy practitioner first before filing either petition. As far as I know, sequencing these two is an important and common aspect in their work. They will undoubtedly be able to give you good advice on that point.
I am sorry you’ve experienced a rough patch these past couple years, but please do not think that either a divorce or bankruptcy should be a badge of shame–these sorts of misfortunes can affect even the most scrupulous of people.
Yes, I should’ve elaborated: if you can find someone that does both bankruptcies and divorces, that’ll be best;
Barring that, the odds are that an attorney who does divorces won’t be as well-situated to handle bankruptcy aspects of a divorce, whereas a bankruptcy practitioner will know how best to structure and time any potential separation and community property issues to maximize the “benefit” of bankruptcy to you.
I second the suggestion to talk to a bankruptcy lawyer first. He will be able to advise you of your rights including which property is exempt from garnishment or other forms of collection actions. It may turn out that you do not need to file.
You should also talk to your attorney about the ‘less than glowing reviews’ from past employers, which is something enough people sue over than I imagine it must either be legally actionable or pragmatically lucrative.