Thursday, September 18, 2008

Unsecured Debt My Ass

Plan vs.. Actual.

When my mind conjures up the word unsecured debt I have a picture of things not tried to the back of a truck flying off the back as it motors down the freeway.

After the financial fall-out from my divorce I was sitting in a pile of bills and wondering how in the hell am I going to pay all of this shit. An idea slowly formed in my mind that if I just defaulted on all of my unsecured credit card debt I would have the money to live and pay my secured debt I.e House and Car. (This thought came that even with a consolidation loan I still would not have enough money left over to eat) After all a credit card company can't come and take stuff away from you right? Well at least that is what I thought.

So I defaulted. I became a deadbeat with my credit card and personal loans.

Things improved. For a while.

Then something happened I didn't think was check went down one alot....enough that I started to panic.

It turns out credit card companies can garnish your wages after they win a judgment by default.

Turns out that debt is secured...secured straight to your ass!!

So now I was unable to pay for my mortgage because Capitol One felt I should be paying them interest and fees before I should be able to feed myself.

I know I was irresponsible, I know at the heart it was my fault, but fuck you for judging until you have been there.

Bring on BK. I have been digging out for the last three years and have finally started to breath again.

1.) Lessons learned - I will never own another credit card in my life. (Would you believe these assholes who took me to court, made my life a living hell have actually started to send me new offers that begin with, "As a former valued customer you are eligible for our exclusive offer.." Fuck you.)

2.) The system fucks middle class people you make too much money to get a free attorney so pile that on to your expense list. (I think if the legislation makes a law so complicated that it can not be argued by reasonable people on their own they should either re-write it or give everybody free attorneys)


Sarah said...

If I'd have known you 10 years ago, I could have warned you. ?I used to prep delinquent accounts for garnishment.

Brian in Mpls said...

Any advise you can give on how to argue out them?

bunny said...

This is the exact reason I don't have a credit card.

I've seen the trouble my friends have got themselves into them and I've been well scared off.

Rocketstar said...

Are you serious? Unsecured defaulted credit debt, they can garnish your wages! Holy shit. It must be in that little print on the back of those forms.

Coconut said...

I am one of the most paranoid, frugal people when it comes to my personal finance. I hope I never have to deal with that kind of stuff!

scargosun said...

We have credit cards for emergencies only. We never bought into that whole miles thing. Emergincies to me are different than emergencies to P.
groceries and no cash = emergency
gas and no cash = emergency

dismemberment and no cash = emergency maybe

houstonmacbro said...

I was in a similar state after a really bad breakup. I had the good sense, before the laws changed, to hire a good attorney and filed bankruptcy. A lot of people warned me NOT to do it, but it was the best thing. I was able to get out from under my debt, buy a new house, and move on with my life without the worry of a ton of credit card debt (90% which wasn't mine, but was in my name).

Robin said...

Props to you for putting it all out there. Good for you Brian.

Tara said...

1.) Lessons learned - I will never own another credit card in my life.

You and me both Brian. I had to file bankruptcy straight out of college because after much begging and pleading with teh credit card companies, they would not lower my interest rates and quite frankly, I got tired of never being able to eat myself. I will never own a credit card again.