The loss of a job

Tony and Ziva had been employed locally and were earning good money, plus full benefits including pension plan, medical benefits, paid vacation, and paid sick days. While they had been employed, their combined net income per month was in excess of $5,000.00 and they had two mortgages on their home, plus two car loans, a loan for new furniture that had been purchased for the living room, and bedroom, numerous charge cards, personal loans, and the usual food and utility bills. Tony and Ziva saw no problem with paying their debts and buying anything they desired. In short, life was good.

But like so many others in these tough economic times, both were laid off.  Their unemployment compensation was a combined $3,000 per month. They were unable to make their necessary car payments. Tony and Ziva also fell behind on the second mortgage loan and could not make their scheduled charge card payments. They had two teenage children who also required clothing and other continuous expenditures of money.

They had been laid off for approximately six months and were facing the repossession of both of their vehicles along with their furniture, and were under extreme pressure from harassing creditors threatening lawsuits and foreclosures. Their marriage was also feeling the strain of the financial problems.

After reading the information on the Steidl and Steinberg website, Tony and Ziva made an appointment. They decided to file a Chapter 7 bankruptcy and were immediately able to eliminate their credit card and personal loan debts. Then they voluntarily returned one vehicle to the lender and purchased a used but affordable car to replace it. They wanted to try every avenue to keep their home.

Fortunately, since the resale of used furniture is a losing proposition for the creditor, Tony and Ziva were able to work out an arrangement with the finance company for a modification of their loan at 50 cents on the dollar. On the status of their house, the first mortgage had remained current, and they were able to make arrangements with the second mortgage company to make lower payments to stave off any type of foreclosure. For Tony and Ziva, there was hope again.