Creditors and Bankruptcy/dealing with creditors

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Question
Hello, 2014 has not been kind to us. This household went from $105,000/yr to almost nothing. Companies downsizing and lack of work have me currently working part time for little while my wife is unemployed and looking. Both of us want to work full time and get out of this hole. Here's the problem... I am getting pounded by every bill we have. We're late on all of them and in termination status with most. Tv's been off for months, phone is about to be turned off, credit cards are untamed/over the limit and spiraling out of control, car insurance almost terminated, car payment months behind, electric in termination and finally the big one - mortgage is atleast 2 months behind. I'm not making anywhere near enough to cover these. I've called all my creditors and explained the problem, none can help or do anything they say, or they give me a payment plan then still say at the end of the conversation "can you make this $300 payment in 10 days?". My electricity is about to be turned off in 2 weeks if I don't pay it. So I figured I have to concentrate on that one first since it's Winter here. I applied for Heap, still waiting to hear and applied for and received food card, have 3 young children. The cash assistance required a lein on our mortgage and riding the work wagon daily, which is not feasible since I work part time and the amount offered was not even enough to cover the mortgage so it was a waste of time.

I'm not able to pay one of these bills in one fell swoop, I've been trying to send $20 bucks to this bill and $20 to that bill, barely making a dent, atleast trying to show effort to pay. My main question is, is it better to pay a little amount on all/alot of bills or better to pay alot on one bill? Also, I'm hoping you can offer me some advice on what to do as we are in a spot? Losing my house/land is not an option. Is bankrupcy an option? Thank you kindly for your advice.

Answer
I am very sorry to hear about your hardship. I don't know how the so called "economic experts" can say that the country has recovered from the recession, (a depression, really, in my view).

I suggest you forget about paying revolving debt, like credit cards. Sending them less than the minimum payment doesn't keep them happy, and is throwing money away. I think you are correct to concentrate on necessities like electricity and food.

Bankruptcy may be an option, depending on how much revolving debt you have. However, it won't make the burdon of paying for your home and daily necessities any easier.

For now, go see a local bankruptcy lawyer who offers a free consultation. Find out how it will affect your home and any other major assets.  

Creditors and Bankruptcy

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Los Angeles Bankruptcy Attorney Leon Bayer

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I can answer all questions relating to debt collection, credit reporting problems, credit scores, bankruptcy, debt settlements, debt settlement scams, and dealing with debt collectors. For many years I have been one of your volunteer experts for the topic "Bankruptcy Law". I would like to receive more questions. I'm thinking that many relevant questions get asked under this catagory as well as my own. See my stats, below: Los Angeles Bankruptcy Lawyer Leon D. Bayer U.S. Available View Profile Ask A Question View Past Answers Knowledgeability9.96 Clarity of Response9.93 Politeness9.97 Response Time(hr)14.6 --Last 90 Days(hr)7.6 Total Questions1119

Experience

34 years as a practicing bankruptcy attorney, published book author on topics of bankruptcy and foreclosure. See, http://en.wikipedia.org/wiki/Leon_D._Bayer

Publications
See, http://www.nolo.com/law-authors/leon-bayer.html

Education/Credentials
BA degree, J.D., admitted to California Bar in 1979.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

Past/Present Clients
Over 15,000 bankruptcy cases.

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