BANKRUPTCY-we many be facing it soon

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Jocelyn

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Hi everyone,
I haven’t posted or had the time to be on this board lately. So busy with my 3 year old and 2 month old.

I just need guidance, prayers and advice.

Bankruptcy is most probably in our near future, and it is not because I have been shopping at the Gap with credit cards or living beyond our means. My husband owns a logging business. The business has been struggling, to say the least. Cost of operation is exceeding business income. The landowners are paying rates that are so low, it is difficult for businesses like ours to survive. You guys, my husband works so hard. He puts in 16 hour days (no lie). It is so difficult to see my husband get up at 2:00 in the morning and not come home till 6or 7:00 at night to make a living for his family. He is a good man, hard worker, and even though we owe much money, whenever he sees the sunrise in the morning he thanks God every day for the blessing of that day.
He is desperately trying not to go claim bankruptcy. His ambition is still there. I just don’t think there is a way out. He is not ready to face that yet.

I am so stressed, to say the least. This has consumed my mind so much, that I don’t enjoy my babies. My mind is a million miles away, and when my 3 year old tries to tell me something, she has to say “mommy” about 3 times before I realize she is talking to me. I am noy sleeping. Yes, it is affecting our family. My husband is dealing with it better than I. He still can have a smile on his face. I on the other hand am in despair/depression. Doesn’t help that I have post partum also. I have been praying to the Lord to at least help us pay the bills. To let the logging business get better so that we can continue. I am also praying that Jesus help me let it go and reassure me that he is in control. “Let go and let God” is what I learned in cursillo. It is so difficult to do. There is a reason for everything. Sometimes, I wonder.

We have met with our accountant. He looked at us and said,“at least your not sitting here telling me that your children have a terminal illness” Yes, there are worse things in life than bankruptcy. It kills me that our credit will be hurt. I was always on top of our credit scores with very high fico scores, but currently our credit scores have been declining.

My husband loves what he does. It is in his blood. He grew up in the business and it is a way of life for many other families in the area we live in. We are not bad people. Just people trying to make it.

My husband says that the challenges in life help us build character and make us better people.

Anyone out there been through bankruptcy?

Any advice?

Please say a prayer that God give us strength to go through this.

St. Jude patron saint of impossible cases. I feel so silly praying for finances and ahve never believed in praying about money. We don’t want to get rich. Just pay the bills. But at this point, we need the prayers.

Jocelyn
 
I will pray for you and your family.
Try to consider what God may be trying to tell you (if anything). Could it be that your husband should be in some other line of work and going through something so drastic might be the only way to make him give up something that’s “in his blood”?
I sincerely hope that you get through this extremely difficult time. Continue to count your many blessings. Hopefully you can look back on this one day in the future as something that lead to something great!
Malia
 
We went through bankruptsy last year. After years of struggling financially trying to pay off bills we just did it. We hadn’t used our credit cards in three years but could not make a dent in our bills. Best thing we could have done. The strain and worry over money is gone. We get to start over and it’s been such a huge relief. We have no credit cards now and I don’t want them.
You are not bad people. Bankruptsy laws are there for a reason. It doesn’t sound like you’ve been irresponsible sometimes life just gets rough. Don’t feel bad. I had wished we’d have filed sooner because looking at the bills every month was just killing me.
I will pray for your family.
 
You are in my prayers but I also want to try to offer some words of comfort.

As bad as a bankruptcy seems, it does have many benefits. It ends the endless phone calls and letters from collection agencies, it can allow you to start again with a blank slate and it doesn’t mean you will never be able to finance a home or car. In fact after your bankruptcy is discharged, you will find you have the best credit rating you have had in a long time.

I went through a bankruptcy myself back in 1993 and at the time I thought it was the end of the world. I was only 23 going on 24, and it even put me into depression worrying about it. As it happened, it ended up giving me a new lease on life as it gave a clean slate.

Right now it probably feels like the world is out to get you and that you are all alone, but that is not the case. It is possible that God is presenting you and your husband an opportunity to start over with a clean slate, and a chance to perhaps spend less time on a job and more time with the family which is a blessing. God has a reason for everything, put your trust in Him and He will see you through this.
 
**First to the original OP i know it must be super stressful to be where you are at right now especially dealing with PPD at the same time…so you are in my prayers:)

Is your husband looking at a career change? If y’all sold off all your equipment would that help cover some of your debt? Is he the sole owner of the company or he does he have a business partner?

If he has enough forestry experience has he looked into working with the U.S Forestry department at a national park or something of that nature? One of my best friends from college repairs trails in national parks for a living.**
 
we know from experience with 3 small businesses that the system is stacked against the small businessman, esp. the sole proprietor. The bankruptcy system is there for a reason, and if your acct and lawyer advise you to go that rout, well you are paying for their advice so why not take it. Sometimes giving up a dream becomes the very act that clears the ground and sets the stage for a new dream to become reality. Pray, as a family, trust in God, as a family, take advantage of help that is out there, as a family, and plan for the future, as a family. we here of course are all praying for you as well.
 
We went through bankruptcy this year under the new bankruptcy law and I thought it was bad news for us. However it turned out to be a blessing for us. We were overburden with credit cards and now, today we are free from credit cards, we don’t want anymore cards.
My mistake was retiring with all this credit cards bills and having a hard time paying them off.
After many prayers to our Lord, Blessed Mother and our patron
saint, St Philomena, our prayers with answered by hearing knocking sound in our home. We went to the doors to see if anyone was there, no one was there. So, my wife and I said. “It’s St. Philomena telling us the good news”, we are debt free! God is good. Trust your Saints too.
So, trust God to help you to deal with bankruptcy. We did it.

Pax,
Melvin
 
we went through bankruptcy also about one yr ago and not becuase we were foolish with our money, no, just the opposite but our loans from when my husband went to college are very high and then we used credit just to pay the heat bill or electric bill or get groceries etc. and then we hadn’t used our credit cards over several yrs but we could only pay the very minimum on the cards and it was robbing us blind and the interest was so high. We needed a fresh start so badly and we needed financial counseling ( which we had to have in MN to even go forward with the bankruptcy) it helped us so much and we don’t plan to ever have a credit card again, we look at it this way ( If we can’t pay for it, we can’t have it) we own our car and van and so we only have our home loan, everything else is paid for with cash… what a difference our lives have become in one short year. Really, if you look at it as a total life change it really can be good, if you look at it as a quick fix so you can go back to the old ways ( not that you are) then you’ll just be in trouble again, but, you’ll get all that info if you go through it as the new laws, you now have to get conceling and the law wants to make sure you understand 100%
I will pray for you, your husband sounds just like my husband, my husband is an electrician and works 40+ hours at his day job and then he does his own electrical contracting in the time after his day job is done… he is working All the time:eek:
 
jocelyn… i will be praying for you too…

God bless~
enjoy your kids and leave the rest to god…
kids are a blessing few get to enjoy…
 
I hope that you have done some research into your options rather than relying on one opinion of even a very good accountant. You didn’t say if this was going to be a business bankruptcy or a personal filing. There are different laws for each and different consequences. The laws recently changed so that many people are forced to repay their debts under a court supervised plan and the bankruptcy still shows up on the credit report for a a long time. It is not like it was before the law changed when most anyone who had a lot of consumer debt could file Chapter 7 and have all debts wiped clean.

It is not the end of the world, but you should find a good non-profit credit counseling service and/or bankruptcy attorney before deciding that bankruptcy is your only option. There is no sense in filing bankruptcy if you can get financial counseling and devise a plan for repayment if it looks like that is what the court would order anyway.

Here is a link to some questions that might help you get started on your research.

bankrate.com/brm/news/bankruptcy/20061101_bankruptcy_lawyer_questions_a1.asp
 
We filed bankruptcy over 15 years ago, before there were real laws on identity theft. We were not about to pay the bills of thieves. It was a blessing for us.

As Annie said, the laws are there for a reason. My husband has his own business, too. It will be a relief to have the debt off your shoulders.
 
Thank you everyone for you your prayers, and advice. I can’t believe how many people have been through bankruptcy, even on this board. I really felt alone. I even received many private messages saying,“Hey, been there, done that!” And yes, I have researched our options. I was/am one who is very anal about paying bills and having an “A” credit rating so I am not taking this lightly.

Yes, maybe God is nudging us in a different direction. My husband does work to many hours. We sacrifice much for this business. I don’t like the way he is nudging us, though. I guess there is nothing without pain. Someday, hopefully we will look back at this mess and say, “Thank you God.!” Right now, it is difficult to see the good, but I need to trust him. I need to let go so I can sleep at night.

I told my husband that if we go under, I don’t ever want to owe again. Home mortgage, is ok and a car loan. Anything beyond that is, “NO!” Bad finances rob one of the joy of life. It robs me of living in the moment.

How about life after bankruptcy? I have an issue with having the big “B” on my husband’s credit report for the next 10 years. Is it difficult to get a loan with that on your credit report?

Then of course we will be the topic of conversation at the local coffee shop for a couple weeks. Oh well, there are worse things in life.
 
In our case, after about 2 years, things got better. We almost automatically were eligible for a secured credit card, and jus twatched things from there.

We had a couple creditors we did not reaffirm (we didn’t create them) that tried to get back on our credit report as late as 12 years after the bankruptcy.

And a certain large department store actually wanted their money or their tires, four of them, that we HAD purchased, along with things we certainly did not buy or the money. They were very nasty about it, despite being on the bancruptcy. The tires were worn. I had the tires replaced elsewhere, and gave them back their tires.
 
Jocelyn, all I can say is thank God that by His grace you have a way out. I don’t. Our problems stem from insufficient income and defaulted student loans (there are complicated reasons why they ended up in default; we weren’t completely at fault…but fighting the government is like battling windmills, though). Defaulted student loans cannot be part of bankruptcy.

I’m like you. Our financial problems have kept me in a depression and affected my relationships with my children, as well. (I had PPD after DD1 and it was verrrry hard to beat that, so I know that battle, too.) I worry that my kids will be grown and I will have been so distracted by my trying to keep a roof over their heads and food in their stomachs that I never noticed the things they needed emotionally. I know what it is to be stretched too far (emotionally, financially, vocationally…) and knowing that rubber band is going to break. The only time I get any peace about it is when I just decide to stop obsessing. It’s hard, but on the rare occasions when I’ve managed to do it, God has taken care of that particular need for me.

So be glad you at least have an out! If I could fix my family’s debt issues with bankruptcy, I would do it in a heartbeat. My kids need a mother who isn’t constantly distracted by the fear of not being able to provide for them. Don’t let your worries about what may happen rob you of the opportunity to have some more guaranteeable (is that a word?) peace.
 
Have you tried contacting AgStar in Barron County WI for a loan?
They give loans to logging businesses.

agstar.com/Default.aspx?pageid=64

Ask for Terrence Marc, he’s the logging specialist…see if he can help you set up a business plan…worth a shot.

We too had a serious concern the first years when we started our own business…considered filing bankruptcy…
Financial problems put a considerable strain on your relationship with your spouse as well…and you could start pointing fingers etc…
Instead, we did a novena, a prayer of nine consistent days…and made a firm committment to God to dedicate our business and our family to Him. Within two months, we found ourselves, meeting our immediate bills…and back with working capital to pay our debts…we still have debt…it’s inevitable, but at least now it is manageable…and God has always provided. With all things, pray first, last and all the days in between. God bless you!
 
OutinChgoburbs said:
And a certain large department store actually wanted their money or their tires, four of them, that we HAD purchased, along with things we certainly did not buy or the money. They were very nasty about it, despite being on the bancruptcy. The tires were worn. I had the tires replaced elsewhere, and gave them back their tires.
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You were certainly not seeing their “softer side.” LOL. (If I’m guessing right store)
 
I will have to reply with a different attitude. The problem with bankruptcy is that you are treating the symptom, not the disease. You are, according to your own accounts, out of control on spending. If you do not solve that problem, in a few years you will be right back where you were.

I would recommend listening to Dave Ramsey on the radio to get some guidance and direction.
 
Here’s a great site for helping you rebuild your credit and recover from bankruptcy:

creditboards.com/forums/index.php?act=idx

Our credit was destroyed due to circumstances waaaaay beyond our control and that site helped us rebuild and recover. We just bought our first home, something we never thought would happen!

YES, you can recover and YES you can establish “A” credit again…faster than you think. 👍
 
masondoggy said:
Here’s a great site for helping you rebuild your credit and recover from bankruptcy:

creditboards.com/forums/index.php?act=idx

Our credit was destroyed due to circumstances waaaaay beyond our control and that site helped us rebuild and recover. We just bought our first home, something we never thought would happen!

YES, you can recover and YES you can establish “A” credit again…faster than you think. 👍
Click to expand...
Great resource! Thanks!
 
My prayers are with everyone who is faced with the bankruptcy situation. I have several friends who have undergone the process and it’s far from what they in the neo-con news media tell us.

First, you have nothing to be ashamed of. It happens. People get sick, people lose their jobs, people lose money even in banks.

Second, we are a product of our economies. Fed tightens the money supply. Fed eases the money supply in favor of something that you don’t work in. Government allows big business to abuse bankruptcy laws (such as many of them did in 2001-2002). Some do it because they have to. When individual investors get screwed by the banks, they can’t pay their bills, are forced into bankruptcy, and everyone down the line gets affected because they’re not being paid and they can’t pay their bills, etc. etc.

Keep working and above all, keep the faith. You’ve come to the right place for prayers. Keep in touch.
 
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