X10905100 Posted October 17, 2003 Report Share Posted October 17, 2003 This is my first post! So be gentle here’s my story.I’ve had a few bad investments.One company I was heavily invested in went Bankrupt; the BK judge ruled that all individual investors like me would get nothing when they came out of bankruptcy. The sad part is the company issued new stock to new investors (new shares at $30 old shares $0) I live in California.California bankruptcy allows $17500 exemptions· Owe $110,000 on 11 different credit cards· Accounts go into collection next month· I’ve received letters from 4 of them to settle for 40% and 50%, sounds good, but I no money.· Been out of work for over 2 years.· Been unable to go back to work for health reasons· No more savings· No more 401K or retirement money· No house· Car worth $3400· If I sold everything I may get $8000· I can borrow $3000 for 2 friends (lone to file BK)· I’ll be staying with relatives till I get back on my feet. · No more rent money after next month1..Does anyone think all the credit card companies will settle for my $11000 (10%)? Yea right2..Should I inform the credit card companies of my impending chapter 7 BK filing?3..Should I even try? Or just start working harder on my BK?4..Should I tell them these details in a letter?5..Why settle smaller accounts? When BK trustee may consider this preference.Funny I don’t mind selling everything I own to pay off my credit cards, but if just one of them sues me I will have to include all of them in the BK filing. Hey what else can I do? Sorry for the long post.. had to ventThanks to everyone for all the help and support Link to comment Share on other sites More sharing options...
LadynRed Posted October 17, 2003 Report Share Posted October 17, 2003 HIGHLY unlikely all creditors would settle for only 10%. If you owe THAT much you ARE likely to be sued by one or more of them.CA has TWO exemption systems, you choose which one you want to use.You can read them both here:http://www.thebankruptcysite.com/exemptions/california.htmThe first allows a huge homestead exemption, the second allows for more personal property and less homestead. Since you dont' own a home, the 2nd may be more beneficial to you as you can use the unused homestead exemption for 'any property'. The 2nd also offers a higher exemption limit for a vehicle.To your other questions:2 - No, don't bother to tell them. They hear it hundreds of times a day and it means nothing unless you actually file. They'll find out soon enough when they get notice from the BK court.3 - With that mountain of debt ? I'd be working HARD on those BK papers !4 - No. - see answer #25 - Exactly. If you DO intend to file, don't make any payments and do NOT send them any money for settlements.AS for your personal property - use GARAGE SALE prices to value your things. Resale, replacement or FMV mean nothing. Link to comment Share on other sites More sharing options...
X10905100 Posted October 17, 2003 Author Report Share Posted October 17, 2003 At this point I've received letters form 2 big credit card companies to settle for 50% and 60% of what I owe.and 10% is better than 0%Guess it was just wishful thinking.Oh well since I do know when I'll be able to go back to work I better get on the ball and start my BK.If I get sued, I have nothing to sue for.Thanks Lady Link to comment Share on other sites More sharing options...
dan12909 Posted October 17, 2003 Report Share Posted October 17, 2003 yea that is true and even if they got a judgment it would be voided by the bk. so with that much debt i would file and not even look back and get out of debt Link to comment Share on other sites More sharing options...
rubyjean Posted October 18, 2003 Report Share Posted October 18, 2003 This is my first post! So be gentle here’s my story.I’ve had a few bad investments.One company I was heavily invested in went Bankrupt; the BK judge ruled that all individual investors like me would get nothing when they came out of bankruptcy. The sad part is the company issued new stock to new investors (new shares at $30 old shares $0) I live in California.California bankruptcy allows $17500 exemptions· Owe $110,000 on 11 different credit cards· Accounts go into collection next month· I’ve received letters from 4 of them to settle for 40% and 50%, sounds good, but I no money.· Been out of work for over 2 years.· Been unable to go back to work for health reasons· No more savings· No more 401K or retirement money· No house· Car worth $3400· If I sold everything I may get $8000· I can borrow $3000 for 2 friends (lone to file BK)· I’ll be staying with relatives till I get back on my feet. · No more rent money after next month1..Does anyone think all the credit card companies will settle for my $11000 (10%)? Yea right2..Should I inform the credit card companies of my impending chapter 7 BK filing?3..Should I even try? Or just start working harder on my BK?4..Should I tell them these details in a letter?5..Why settle smaller accounts? When BK trustee may consider this preference.Funny I don’t mind selling everything I own to pay off my credit cards, but if just one of them sues me I will have to include all of them in the BK filing. Hey what else can I do? Sorry for the long post.. had to ventThanks to everyone for all the help and supportWith the amount of Credit card debt that you have, I would file.. There may be a couple of Credit Crd Companies that would settle for 25%, once they are 180 days, but as you stated, you do not have any income..Good Luck and hope that your financial situation improves.. Link to comment Share on other sites More sharing options...
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