Any way other than bankruptcy?

[true_endeavor]

What is the name of your state? Florida

I had 2 major setbacks this year that really messed up my minamal finaces. I fell of a horse & broke 5 ribs & a major concussion thet left me non funtioning mentally (3 months to heal) three hurricanes destroyed a small business I own (sole proprioter)

It has been 6 months and finacially I havent rebounded yet. All of my unsecured loans started tacking on overlimit & lte fees that took my debit from $6000 to about $8000.

I consulted a BK attorney and am not eager to file. When I ask questions about getting all this crazy interest to stop & just paying the money I actually owe & not all the tacked on fees I am told "don't pay anything" and would offer no help other than filing BK.

Is there anyway that I can pay my debt at a rate that will work for me. I have not answered my mail or phone for 6 months & now want to deal with it. Without bankruptcy if at all possible. I want someone that knows the cc industry to work with me so I don't get railroaded by the cc companies.

I think I could pay my debt off. Is there any reason not to go this route? Am I stuck with all the interest & fees?

 

[Ladynred]

If you haven't paid any of your creditors in 6 months or more, then all of the accounts have probably been charged-off - written off as bad debts. Once they do that, they may assign the debt to a collection agency for a few months or they will just sell the account to a junk debt buyer. For the most part, once a debt is charged-off, they original creditor washes their hands of it and you're stuck dealing with the collection agency or junk debt buyer.

If the accounts have not charged-off yet, you MAY still be able to get on a hardship program that will reduce or stop interest for 6 months to a year. The drawback is that they will want large initial payments and if you are late even 1 day, they will yank you off the 'program' and you're back where you started.

Debt consolidation/managment/negotiation companies are 99% SCAM, so I'd stay away from them. Even CCCS cannot be trusted as they are funded and controlled by the credit card companies. They act primarily as another collection vehicle for creditors and THEY decide who gets on a debt management program, NOT CCCS !

 

[true_endeavor]

I live in Florida.

Ladynred..........I appriciate your reply. I have read many of your posts & respect your opinion.

I am just starting to get letters from collection agencies, but still geting alot of calls from the original company. How do I find out about what the legal ramifications of my situation is? The lawyers just want me to file bk but the total debt amount seems so low. A company med "Genus" says thy can stop all interest & blah blah......another scam?

Do I just hire a lawyer and say "keep me out of bk, just work something out with the cc companies" Is that possible?

I don't want to do 200 free consultations to find a lawyer that will help me, that's not fair. But how do I find one that will look at my whole situation before all of this is out of my hands and I have judgements against my meager property ( old trucks, old horse trailer & an old RV)?

Just tell me where to go to answer this question.............

 

[legal_wonderer]

My situation is different but I'm getting some free legal assistance. The first news I heard is that because I have no assets and nearly no income, there is nothing for the debtors to attach to. Because of this, it is suggested that I do not need to file bankruptcy. I will share more as I get more details.

Have you tried to get free financial counseling from your bank or credit union? I got fantastic advice from my credit union previously.

It really sounds like bankruptcy will not be the only route for you to take. Keep researching and good luck.

lw

 

[true_endeavor]

I HAVE assets 2 trucks, 3 horse trailers,an RV, 14 dogs & 2 horses. I make my meager living working cattle & need all that gear I own. Losing it would ruin years of hard work aquireing it. I contemplated selling some of my assests to pay my debt, by I would loose to much doing it that way.

Again, is there any way to negotiate with cc companies?

 

[Ladynred]

Yes, there are ways to negotiate and a lawyer is not necessary unless you're more comfortable doing it that way. Most lawyers who do that sort of thing are about the same as these 'debt counseling' companies.

Genus is just as bad as Ameridebt and all the others, you PAY for them to negotiate, settle, whatever and it STILL takes 3-5 years - or more, to get out of debt. Creditors are NOT required to work with ANY of these companies, so there's no guarantee that Genus or any others will actually help much.

The legal ramifications: if you don't pay, they CAN sue you and get judgments and try to attach bank accounts and your assets (of which you have none they'd want !!) and garnish wages. It sounds like most of your assets might be exempted from attachment as 'tools of trade'.

Whether or not they'll actually sue is a crap shoot. You don't own any property, so that's one big factor for being sued that you don't have to worry about. Your balances don't appear to be all that much, which is another factor. Some creditors, like Discover, will sue for just about any amount owed, others rarely sue or won't sue unless you owe a LOT of money. Citibank is another that is pretty aggressive with lawsuits.

You can do the negotiation yourself, you just have to do it all in writing and keep a paper trail. Decide how much you can offer them as payments or a settlement percentage and send them a proposal. Since your debts are relatively 'fresh', near or just charged-off, creditors aren't likely to go for much less than 60-80% settlements, but you never know. Chase offered me a 35% settlement just before the account was charged-off. I was unemployed at the time with no reserves so it didn't matter, I couldn't afford 35% either.

Head over to www.creditinfocenter.com and look into the Debt Settlement forum, you'll get plenty of help

 

[legal_wonderer]

As ladynred pointed out, your assets are most likely exempt but they also most likely have low resale value. Most bankruptcy cases are "no asset" as in no non-exempt real estate, recent model cars/boats/etc.

Good luck. I'd love to keep in touch as we go through this experience. Is Citibank still independent? Bank One took over several and now Chase is taking over Bank One.

lw

 

[true_endeavor]

Ladynred...........THANKS!

That was some good info and will help me decide my best plan of action.

 

[Gracie3787]

What is the name of your state? Florida

I had 2 major setbacks this year that really messed up my minamal finaces. I fell of a horse & broke 5 ribs & a major concussion thet left me non funtioning mentally (3 months to heal) three hurricanes destroyed a small business I own (sole proprioter)

It has been 6 months and finacially I havent rebounded yet. All of my unsecured loans started tacking on overlimit & lte fees that took my debit from $6000 to about $8000.

I consulted a BK attorney and am not eager to file. When I ask questions about getting all this crazy interest to stop & just paying the money I actually owe & not all the tacked on fees I am told "don't pay anything" and would offer no help other than filing BK.

Is there anyway that I can pay my debt at a rate that will work for me. I have not answered my mail or phone for 6 months & now want to deal with it. Without bankruptcy if at all possible. I want someone that knows the cc industry to work with me so I don't get railroaded by the cc companies.

I think I could pay my debt off. Is there any reason not to go this route? Am I stuck with all the interest & fees?

Because your income/business was affected by the hurricanes have you contacted FEMA? They have alot of help available, and can give referrals to other agencies. If you don't know where the FEMA Disaster Assistance Center is for your county, you can call them at 1-800-621-FEMA.
Good luck.
Gracie

 

[true_endeavor]

There is a reason I am not wanting to file bk!

If you haven't filed your taxes, you can't file bk. I don't have the money to have an accountant go over everything. Without the paperwork saying I've filed my taxes.................I am in deep dodo & cant file bk

So does anybody know how I deal with th cc companies do redice my debt without having curent submissions to the IRS?

 

[dws613]

If you can't file BK, you have no assets, and no income what can they do to you? Just go about your life and forget about it or work it out with your creditors directly. Doesn't seem like you have much choice.

Did you know filing chapter 13 BK instead of chap 7 you can negotiate your settlement & payment plan through the courts. Chap 13 won't rid you of debt, but it can get it reduced and get a payment plan set up for you to pay back the money you owe.

 

[legal_wonderer]

True,

You can prepare your taxes online for free - there are several sites available. Modifications can be made to your tax refund for several years if you make any errors.

I'm not sure what statute states you cannot file for bankruptcy if you haven't yet filed your taxes? Anyway, if this is true, file your taxes as best you know how. Also, if you owe taxes, you can file now and pay on or before April 15th with no late fees/finance charges. If you owe taxes and do not have enough money to pay them, you can set up a payment plan rather than having to pay all at once.

lw

 

[Ladynred]

If you haven't filed your taxes, you can't file bk.

WHAT ??? Who told you that ? Where did you get THAT from ?? People file for bankruptcy EVERY DAY w/o having filed their taxes, there is no restriction that I'm aware of, that would be ridiculous. Now, if you haven't filed your taxes before you file for BK, the Trustee WILL likely insist that you file them by a particular date (probably before the 341 meeting) and if you're entitled to a refund, the Trustee is probably going to take it to pay your creditors.

 

[dws613]

You can't use bankruptcy on your taxes. The government will let you screw private companies, but not them. You may have to file your taxes to clear that up because your bankruptcy won't take care of them and the government will want any money you owe them (through any assets being liquidated).

 

[Ladynred]

Nobody said anything about including taxes in a bankruptcy, and you are wrong, at least partially. Taxes filed and owed that are 3 or more years old CAN be discharged. Most people lose NOTHING in Ch 7, nothing to liquidate.