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my debt story

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There are two types of personal bankruptcy. As someone in debt, the sound of either is both scary and embarassing at the same time. Some of us at some point have smelled the coffee and decided with earnest, that budgeting and paying attention is important. Not all of us have attained that skill before we are up to our necks drowning in a sea of mistakes, bills and forclosure notices. Perhaps the biggest mistake I have made was assuming I did not need to change.
I worked 40-50 hours a week. My husband worked 60 + every week. We paid our bills on time. We did so and suprisingly still managed a household with 2 kids in it. Until the third came along. I underwent an employment change and went with another company, at the time I was not recieving healthcare benefits. I was not married until 1 year later, so in honesty my husband and I were technically a live in unmarried couple. Therefore with his employer he could not add on another child at the time. We know now, that the information was bogus and we could have added her. However, the timeframe we found out was well after 30 days of her birth, and therefore they said we were out of time on a enrollment change 'on demand' for an addition his coverage.
Durring the first 3 weeks, we had our new baby,with a fever of 103 that would not go down, I had to have her sent in an ambulance to a children's hospital in another city, the closest hospital we lived to had told us when we got there that her fever was out of control and they had no one on staff to take care of her. I had no idea what all of the signs were of her illness because she had always been with me, and bundled up. I took her temperature on night because she was unusually quite, and she never was a quiet baby. At 21 days old I ended up having her at the hospital for 5 days. She had a viral infection and a bill of over 13,000 dollars.
I was extremely greatful that she was okay. My now husband, had two kids from a previous marriage but our baby was the only baby I ever had. I tried to make payments but started slipping.
In 2 years time, both our vehicles were vandalized with really high deductibles, a 13,000 dollar medical bill, I lived in an apartment that needed renovations that the landlord would not provide to the heating ducts thus forcing a three bedroom apartment to have 350 dollar a month heating bills, I ended up needing a medical procedure myself (uninsured) and the pile started to build. I ended up using my credit cards to move, I didn't have enough liquid assets to pay a deposit, first month, last month, and a moving truck. I ran up all of my credit cards paying my bills while I used regular paychecks to cover payments on the other debts that piled up. Im sure there were a few other errors I made definately by using buy here pay here services for another vehicle after draining 2,000 into repairs that didnt fix the problem in my car. I found a speeding ticket I had from 4 years ago on accident come up when I tried to change the name on my liscense after getting married. I was an idiot and let the parking ticket from the year before from my expired inspection pile up. So inorder to renew my regristration that is technically in his name, It ended up being 800 dollars. I had to get that cleared up for the car insurance to accept the premium when we renewed the policy.
Somehow after making some payments my credit was repaired enough that I was starry eyed and stupid to buy a house. I did, I ended up being sucked into a high interest loan with a predatory lending company and was told they would have no problem after 24 months adjusting the rate and I could refinance. I used my tax return to cover everything so all of the kids had enough room to live, since a 5 bedroom apartment was almost impossible to find where I lived after looking for 6 months. I neglected to mention earlier my mother is law is bipolar and needs care and I ended up housing her as well. My husband felt that no one should be in permanent care as long as family is around.
I smelled the coffee, when I lost my job and therefore piled 2,000 in bills a month on one employed person, my husband. I searched for months and kept being told I was overqualified, or the position was filled.
I looked at debt consolidation, payment plans, kept having my bank account frozen while trying to buy groceries, took out more credit cards to any company dumb enough to let me or so I thought. I sunk myself.
Finally, the best thing I did, was come to the reality that Debt consolidation companies only mediate and negotiate on my behalf. I hand them money, they hand my money to whom I owe it to, and they take a cut. So in a sense, I am getting a meager discount to allow someone else to mail a check for me.
I instead researched options on line and found the best to be bankruptcy after being told by my mortgage company in a letter that we could be potentially thrown out into the streets before christmas of 2008. It was eye awakening. I would have lost everything and had to pay the difference of what was owed after the short sale.
I researched bankruptcy. In my next post I will reiterate.

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