We owe around 70,000 in credit debt. Should we try to negotiate our own terms or use a debt consolidation company. We have no assets. Is it true that using a consolidation company would take less time to pay our debt? Most of these accounts (11) are already with collection agencies. I negotiated our biggest one $23,800 last week, two big payment for July and August and 100 for every month after. I asked them if interest and late payments are stopped, she told me yes, as soon as we pay our first payment. I asked her if they will report to the credit bureau that we are current and making payments and she said yes. Are they required to provide anything in writing? I asked her about that and she said yes, I should receive paper a few days before the first payment is due.
I hope I'm not being ripped off!
Diana
Gus
07-25-2003, 07:16 AM
DON'T SEND THE MONEY!
Don't send any money until you have a signed (by them) agreement.
Don't sign your name to anything no even your letters.
The collectors will lie, lie and then when you don't expect it they
will lie. If you were to file, would BK 7 be an option? If so, you
may be able to keep your cash, and make a fresh start.
Don't use your personal check, use a money order. Also, check out the
below for more comments and info.
Well we tried but our lawyer said we could only file Chapter 13. They
figured we could pay 2,300 a month to the creditors for the next 56 months.
We decided not to do that because we would literally have to live without
everything. Only 75 per week on food! No new clothes..........etc. We
can't do that. We wanted Chapter 7. We considered me losing my job, or
getting pregnant but we don't know if that will change the circumstances.
We have done our budget over and over and for us to live normal, ok lives we
only have 1,000 left over. But that would change if I got preganant and
didn't work. My only worry is that I own a home businesss I started about 2
years ago. It brings in maybe $35.00 a month. In other words I really
havent gotten it off the ground because I've had to work to pay bills. I
try but it's the type of business that is word of mouth and some advertising
that could take 10 years to make a living for us. I'm not going to sell it.
It's not even worth anything! Geez.
What do you think about our situation?
Oh, about the payments I agreed to make to the collections agency. I asked
them for the terms in writing and they told me they could not do that. I
agreed to checks by phone! (big mistake) $582 for July 31, $582 for August
31st and $100.00 for every month after. Which is affordable for us
considering the regular payments were 400 per month. High balance of
23,000. Heres the catch. It's my husbands account from before we married. I
called as his wife and they didn't even ask for verification of who I was or
if I had the authority to make payment arrangements! Nothing. Maybe I have
a way out on this?
Thanks for any advice you have.
Diana
"DIANA" <DESPOSITO@ADSMOBILITY.COM> wrote in message
news:4qTTa.3651$Hr.30793@twister.socal.rr.com...
We owe around 70,000 in credit debt. Should we try to negotiate our own
terms or use a debt consolidation company. We have no assets. Is it true
that using a consolidation company would take less time to pay our debt?
Most of these accounts (11) are already with collection agencies. I
negotiated our biggest one $23,800 last week, two big payment for July and
August and 100 for every month after. I asked them if interest and late
payments are stopped, she told me yes, as soon as we pay our first payment.
I asked her if they will report to the credit bureau that we are current and
making payments and she said yes. Are they required to provide anything in
writing? I asked her about that and she said yes, I should receive paper a
few days before the first payment is due.
I hope I'm not being ripped off!
Diana
Gus
07-27-2003, 11:40 AM
No new cloths, time to find a different attorney.
A reasonable clothing allowance is allowable (one shirt/pant a months,
new shoes every 6 mo. or maybe $50 a month ea.).
Start digging, and redo you budget;
car expenses (tires, oil changes and tune-ups), dry cleaning, personal
care (hair cuts, hair care, make-up and personal items), doctor/dental
visits, drugs, life insurance, the list can go on and on. You mention
no children, what about infertility testing/treatments. Think of
joining a health club. Find god and start going to church and making
those cc.
To get yourself in this hole, you must of been spending, don't short
cut on the budget.
Not to say anthing negative, but attorney fees are triple in BK 13.
D Esposito
07-27-2003, 02:50 PM
We don't have children yet, we just got married in April. We really want to
have children soon and I definitely want to stay home with our child
afterwards. This would change our situation, hopefully and allow us to file
Chapter 7?
Our take home right now combined is $5675 a month, our expenses including
everything your suggested worked out to 4,000 a month. Leaving $1675 extra
for chapter 13.
The lawyer set up a payment plan of $2,300 per month payment and expected
us to live on 75 per week food, not accounting for any auto repair, lic,
tires, etc.. or even emergencies. He wanted us to scrap internet, cable,
cell phones which are all crucial to keep my home business running! We know
we cannot live if we have to pay $2,300 a month. If I get preganant and
quit my job my home business will be our only "other" source of income. I
will lose my $1,300 per month I am making P/T if I decide to stay home with
our children. Do you think this would change our situation so we could file
Chapter 7? I don't even know what the courts allows for dependents such as
children. We really need to file Chapter 7 in the worse way. The laywer
seemed to think I would be forced to quit my business in Chapter 7. I
really don't care, I will just register it in another name and keep it
going. We don't feel we ran up our credit to abuse the system. I put my ex
through college with mine, my husband on the other hand was a spender and
never really understood how he got in so much debt. We are so stuck now,
I'm losing sleep. Ugh.........
DSE
--
Believe nothing because a wise man said it.
Believe nothing because it is generally held.
Believe nothing because it is written.
Believe nothing because it is said to be divine.
Believe nothing because someone else believes it.
But believe only what you yourself judge to be true.
-- Gautama Buddha
"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0307271040.3093deef@posting.google.c om... No new cloths, time to find a different attorney. A reasonable clothing allowance is allowable (one shirt/pant a months, new shoes every 6 mo. or maybe $50 a month ea.). Start digging, and redo you budget; car expenses (tires, oil changes and tune-ups), dry cleaning, personal care (hair cuts, hair care, make-up and personal items), doctor/dental visits, drugs, life insurance, the list can go on and on. You mention no children, what about infertility testing/treatments. Think of joining a health club. Find god and start going to church and making those cc. To get yourself in this hole, you must of been spending, don't short cut on the budget. Not to say anthing negative, but attorney fees are triple in BK 13.
Gus
07-28-2003, 10:24 AM
At the moment I think you are limited to either BK 13 or debt
settlement.
First off get a different attorney to work on a good reasonable
budget.
If you choose debt settlement, know that you may get sued and a
garnishment may be ordered (if so then file BK).
Why would we get sued if we decided to settle? I know the amount forgiven
could be counted as income but why sued if you paid/settled?
My cc have been delinquent for over a year! I'm surprised nothing has
happened yet. Most of the calls have slowed down, some stopped completely.
If we get a wage garnishment that doesn't automatically mean we could file
Chapter 7 does it? I will check the web link you said. Thanks for all
your correspondence. I appreciate it.
DSE
"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0307280924.5b8988f2@posting.google.c om... At the moment I think you are limited to either BK 13 or debt settlement. First off get a different attorney to work on a good reasonable budget. If you choose debt settlement, know that you may get sued and a garnishment may be ordered (if so then file BK). Check out this site http://debt-consolidation-credit-repair-service.com/ they all seem to know a lot.
Gus
07-28-2003, 01:59 PM
Part of the debt settlement process is to stop paying.
They will not even talk to you if your paying. Once you stop paying
they may sue, your hope is they will work on a settlement before they
sue.
If your debt is over a year old at with a CA, you are golden to make a
offer (if you have cash). Start low offer 10%, remember they only
paid 5 cents on the dollar for the debt. Your hopes are, they will
take 35-50%.
Good Luck.
Art
07-28-2003, 02:30 PM
Can one be sued or wages garnished from a creditor that was unsecured?
What happens if someone just stops paying credit cards, can they sue for
recovery or garnish wages even though the debt is an unsecured debt?
Can collections call you at work or contact your neighbors?
Is this an option to bk13 or bk7?
Art
"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0307280924.5b8988f2@posting.google.c om... At the moment I think you are limited to either BK 13 or debt settlement. First off get a different attorney to work on a good reasonable budget. If you choose debt settlement, know that you may get sued and a garnishment may be ordered (if so then file BK). Check out this site http://debt-consolidation-credit-repair-service.com/ they all seem to know a lot.
Gus
07-29-2003, 06:33 AM
> Can one be sued or wages garnished from a creditor that was unsecured?
You can be sued for anything; wage garnishments vary per state law.
Texas is debtor haven, no wage garnishments (they can go after your
bank accounts).
Florida is next, no wage garnishments if head of house.
Most other states they can attach 25%.
What happens if someone just stops paying credit cards, can they sue for recovery or garnish wages even though the debt is an unsecured debt?
Yes, CC will turn it over to a CA, and they will sue if they think its
the only way to get paid.
Can collections call you at work or contact your neighbors?
CA will call you at work and maybe call your neighbors. You must send
Cease and Desist letter, then its $1,000 violation.
Is this an option to bk13 or bk7?
If you live in TX and FL, why not (that's why these states have the
highest percentage of all bad debts in the nation). If you live in
another state that allows garnishments and the CA has a court order to
garnish, BK13 or BK7 may lower or eliminate your payments. Also, in
some states the CA can get a lien on your house and force a sale.
