I have a couple of issues with what people in here are posting. It sounds like many of you are either too young to understand what is going on out there or haven't been hit financially like people have. Yes, there is a segment of people who did the "house flipping" or bought a house they could not afford but there are many more who are simply struggling even though they did the right thing. Here is what happened and is happening to me and if you think I would deserve debtor prison...then you are insane to bunch everyone up into a single category simply because they are in debt.
I went through a divorce and child custody battle for 3 years, during that time I sold a house that once had equity of over 100,000. The house I sold (required by divorce) lost most of its equity and I received 700.00 dollars at closing. I built a new house cheaply and at that time had plenty of income and reserves to pay for almost anything. I have been self employed in the state of Michigan for 15 years. My income 3 years ago was more than enough to pay for the house I had built. The house was built for 165,000. At that time I had very little expenses, large checking and savings and yes a mortgage payment.
Living in the state of Michigan, being an architect and all you have to do is add those 2 things up and you can see what happened to me. The housing market in Michigan tanked. My work went from producing 200 plans a year went to almost nothing overnight and then my ex-wife decided she wanted to move my child to another state so she could be with her new man she met on the net. So i went through a 2 year custody battle (which I won) that cost me 2 years of salary. In my county alone, building permits went from an average of 600+ year down to 20 and I basically lived off what i had in the bank because there was virtually no income. It is the same today. I have been using credit cards to pay my lawyer, to pay my house payment and to just get by. Even though I have always paid on time and had a great credit score, the credit card companies decided to reduce my credit lines down to what I owe, I did not max my cards out, they maxed them out for me and my credit score tanked. Now I am at a situation where I am trying to get the home loan modified to stay in the home.
I feel that I did nothing wrong, I built up credit lines for 22 years, using the cards sparingly and only using them when I needed to when everything tanked. When I did, I was targeted and the domino effect took hold. Did I ever believe that my income would almost disappear, that my ex-wife would take me to court over anything and everything over the last 2 years (I won every case). Did I ever think that I would lose all credit lines I had earned over 22 years. What I find infuriating is that when the banks needed help, our taxpayer money saved their butts, when I needed to finally use the credit lines I had, they were almost instantly removed by these same banks. I want to make this clear. I never abused any credit card. I did not go out and buy things I did not need. I worked and paid my bills, I fought to keep my rights for my daughter and now I almost have no where to turn and some of you think that I would deserve debtor prison????? Not everyone out there is abusing the system....I did everything I was supposed to do but it turned into a disaster in Michigan, my work related to housing and now debts to lawyers and a couple of credit cards. There are real problems happening to real people who used to be able to live a good life, pay their bills and have a nice home without going overboard, but it still caught up to me. Things happen, it will pass but don't lump me into one giant category or blame. It is not that simple.
I went through a divorce and child custody battle for 3 years, during that time I sold a house that once had equity of over 100,000. The house I sold (required by divorce) lost most of its equity and I received 700.00 dollars at closing. I built a new house cheaply and at that time had plenty of income and reserves to pay for almost anything. I have been self employed in the state of Michigan for 15 years. My income 3 years ago was more than enough to pay for the house I had built. The house was built for 165,000. At that time I had very little expenses, large checking and savings and yes a mortgage payment.
Living in the state of Michigan, being an architect and all you have to do is add those 2 things up and you can see what happened to me. The housing market in Michigan tanked. My work went from producing 200 plans a year went to almost nothing overnight and then my ex-wife decided she wanted to move my child to another state so she could be with her new man she met on the net. So i went through a 2 year custody battle (which I won) that cost me 2 years of salary. In my county alone, building permits went from an average of 600+ year down to 20 and I basically lived off what i had in the bank because there was virtually no income. It is the same today. I have been using credit cards to pay my lawyer, to pay my house payment and to just get by. Even though I have always paid on time and had a great credit score, the credit card companies decided to reduce my credit lines down to what I owe, I did not max my cards out, they maxed them out for me and my credit score tanked. Now I am at a situation where I am trying to get the home loan modified to stay in the home.
I feel that I did nothing wrong, I built up credit lines for 22 years, using the cards sparingly and only using them when I needed to when everything tanked. When I did, I was targeted and the domino effect took hold. Did I ever believe that my income would almost disappear, that my ex-wife would take me to court over anything and everything over the last 2 years (I won every case). Did I ever think that I would lose all credit lines I had earned over 22 years. What I find infuriating is that when the banks needed help, our taxpayer money saved their butts, when I needed to finally use the credit lines I had, they were almost instantly removed by these same banks. I want to make this clear. I never abused any credit card. I did not go out and buy things I did not need. I worked and paid my bills, I fought to keep my rights for my daughter and now I almost have no where to turn and some of you think that I would deserve debtor prison????? Not everyone out there is abusing the system....I did everything I was supposed to do but it turned into a disaster in Michigan, my work related to housing and now debts to lawyers and a couple of credit cards. There are real problems happening to real people who used to be able to live a good life, pay their bills and have a nice home without going overboard, but it still caught up to me. Things happen, it will pass but don't lump me into one giant category or blame. It is not that simple.