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I need financial advice about unpaid bills and voluntary loan default?

If you don’t feel like reading my long story, skip to my questions below:

My situation is complex. I filed for bankruptcy two years ago due to thousand of dollars in medical bills and a car repossesion. It was discharged, I was on my way back to the top and then I got laid off from my job. With my limited income, I had to prioritize and therefore I had to let some bills go. Even after almost two years, I have not been able to find a full time job. I am currently working two part time jobs with no health insurance. My priorties were paying rent, utilities, back taxes, student loans and my car payment. Now I have gotten to the point where I can’t make my car payments. I have three credit cards, all in good standing, but low credit limits. Recently I have had three unpaid bills go into collection. I did not want that to happen, however those creditors gave me no other options and expected me to drop hundreds of dollars at once, if I was able to do that, they would not been unpaid in the first place. My issue now is not paying my car payment, when I got the car, I was employed, since I got laid off, I have been struggling to make the payments. I no longer need the car because I live in a city with good public transportation, but I cannot sell it, it is not worth what I paid for it and no one will offer me the amount I paid for it. Furthermore, I cannot refinance it, I keep getting turned down. I have tried to seek help from Capitol Auto Finance, but they will not offer me any. At this point, I give up, I feel stuck and unlucky. I know many Americans are going through the same situation, but I feel like I am not trying hard enough to get out of the financial mess I am in. I been constantly worrying and depressed. Now I am worried that I want be able to get a job or an apartment (despite the fact I have never been late for rent or never been evicted) because of my credit issues. I was offered a job, but it contigent on a extensive background check, which is includes checking my credit. Even if I get the job, it will be too late. I have manage to put myself in financial ruin again.

My question is what should I expect from the 3 unpaid bills sent to collections (is there anything I can do about them once they have been sent to collections) and what should I expect from my voluntary loan default. My credit score was alright, but when these 4 items hit, it will drop drastically. How can I increase it in the future?
“Learn from my mistakes” What mistake did I make, I can’t help that I have a genetic kidney disease or if my job laid me off. I don’t use those as excuses nor do I live beyond my means. I don’t have stuff to sell and already live on a bare minimum, sleep on the bare floor, just waiting to die at this point. How the hell am I suppose to sell the car “for anything”, how am I going to pay the remainder of the loan? If anything, that was my only mistake, getting the car. You sound like a creditor, someone with no clue of what I am going through.

Sorry for venting.


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2 Responses to "I need financial advice about unpaid bills and voluntary loan default?"

  1. oscbox says:
    1) Sell the car immediately. “…no one will offer me the amount I paid for it” Of course they won’t because cars depreciate at a considerable rate. Take any reasonable offer even if you aren’t getting what you think is “fair”. You need the cash!
    2) Sell anything else that you can. You can bring in a few hundred bucks with a good garage sale. You can also try eBay.
    3) Go on a beans and rice diet. Use the savings in groceries to pay the bills.
    4) Cut out anything extra from your budget – start packing a lunch, no restaurants, no cable tv, get your phone and computer services down to minimal levels, etc…
    5) listen to Dave Ramsey and/or visit his website
    6) Learn from your mistakes!!!
    7) If you filed for bankruptcy 2 years ago, your credit is already shot. Your focus should be on correcting the current problem rather than worrying about your credit score. If you live on a “cash only” basis, credit won’t matter anyway.
  2. Holland Bankruptcy says:
    1. Voluntarily turn the car over to creditor. They will still likely come after you for the deficiency (what you owe on the car minus what they can get for the car), but voluntarily turning it over will at least decrease that amount somewhat.
    2. You can negotiate with creditors even once the debt is turned over to collections. All that really means is that the original creditor is getting tired of trying to collect so they let “professionals” collect for them. Sometimes it is actually easier to work out a deal once it goes to collections.
    3. If the creditors still will not work with you, tell them in writing that they are not to call you but may only contact you by mail. That way you don’t have to worry about harassing phone calls.
    4. If a creditor sues you and gets a judgment against you there are a couple things you can do. If you are unemployed, they obviously can’t garnish your wages, so don’t keep money in a bank account and don’t worry too much about them collecting. If you get another job, see if you can get an installment payment through the court. Most states allow that and you can usually get a relatively low payment (much lower than what the creditor can garnish from your wages).

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