bad debts

[vera]

am writing to you because of my bad debts situation. To make the

story short, my husband and I had a good income until the bad economy

hit us in 2001. We bought a house and a car just before loosing our

jobs. We lived in Colorado and we waited a year and half with no jobs

at all. We kept paying our debts but we used all our savings.

We decided to move to where the jobs are in 2003 and we ended up in

Virginia. I had a job since Dec 2003 and my husband kept having and

loosing jobs. He has been unemployed for more than 8 months. We

have around $50.000 debts and a house that is almost gone into

foreclosure. The car got repossed at the end of 2004. I am working

and I make just enough money now to feed and house the family and I

cannot pay the debts or the house payment anymore. I am thinking

about filing for bankruptcy even though I work as a contractor for a

government agency. I might loose my interim clearance. But I do not

sleep at night anymore. Our financial situation has split the family

in 2. (My husband is back in CO because of the house issue). We did

in the summer of 2004 got with a debt counseling agency and I payed

them every month to lower our bills and debts but all those payment

did not lower the high balances. I stopped paying 2 months ago

because I could not make the payments and the interest rates have been

increased tremendously. I can even look at the bills anymore it is so

scarry.

Do you have any advice for me. I feel trapped and lost.

[willingtocope]

I'd suggest you find a BK attorney in the area and ask for a free consultation. The BK laws are changing, but I think you'd probably still quailify for a BK 7...and from what I've seen of other posters on this board, it shouldn't affect your government contract.

You've tried the debt counselors and you see that they're basically scams. I know you guys feel responsible for these debts and would pay them if you could, but, bad things happen to good people sometimes.

BK isn't the greatest thing, but it will get you a fresh start and out from under so many of the things you're worried about right now.

Talk with a lawyer....