Tuesday, September 17, 2013

My Summer of Poverty, Part Two (my continuing bankruptcy story)


Of course, it's September now, but I've been writing material for the blog for a while.

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Now, it's July 2013. Istruggled making payments because my work hours were reduced in the spring. My trustee died. My lawyer suggested converting my bankruptcy to a chapter seven. I was worried about losing the house, but my lawyer said she wasn't really concerned about that. There is only $3,000 of unprotected equity, and with closing costs and the amount I owe my creditors, it isn't really in the trustee's interest to try and sell the house. My recent surgeries (colonoscopy and right hemicolectomy) came to $60,000 (yes, I had insurance). I should have been done with the bankruptcy, since I was on a three year plan, but thanks to a paperwork screw up, I could convert to a seven, AND include my most recent debt. It's not the most noble way I could have addressed it, but do YOU have $60,000 set aside for a rainy day? Yeah, thought so. So I guess it's working out. Had I gone for a seven in the first place, I wouldn't be able to convert now. However, I do regret paying $17,000+ to the trustee, knowing that had I done a seven, I could have saved a good chunk of that money and maybe gone back to school. However, even if I saved the full $17,000, it still wouldn't be enough to pay for the medical bills. So, I guess there is a huge positive to this, even though right now I'm down to my last $50 (most of it in change) and my car died on the other side of town. Too poor to pay for a tow, I begged a car care place to push me off the road. Even my emergency blinkers weren't working. I can only hope the car will not be towed or vandalized until payday comes, and I can pay a tow service to bring it home. Most of my next two paychecks are spoken for, and with my hours being cut, I have no idea when I'll be able to get my car repaired.


I know this blog doesn't seem very funny. Where's the humor, you're probably wondering. Well, I'm trying to save that for my memoir. Since I tend to be very wordy, I'm writing this all up on a sleepless July night. I figure, if I write a bunch and post a little of it at a time, I will have plenty to write about. Maybe not a daily blog, but perhaps twice a week. I am planning to share some tips and suggestions if you are planning to file for bankruptcy. Please bear in mind I am not an attorney. Everyone's case and situation is different. States have different laws regarding equity in homes. There are also income limits as well. I can only tell you my story. My experience has changed my mind about money. It has also made me bitter as well as more compassionate.

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