undaunted Posted October 2, 2004 Report Share Posted October 2, 2004 First, thanks for all valuable info found here, my eyes hurt..., Second, 3 years ago I went flat broke, with $15k in debt spread across 6+ cards. I disappeared into my friends homes and have been scraping by since.I'm wondering what should be my first step in trying to address my past? I have no savings, no assets (other than a 78VW Bus) no money: i bring home about $1200/month; rent 620, student loans $300 and a few bucks to eat on.I received my first CA notice a couple of months ago, and did nothing. Should I address it? Should I find out what's on my CR? Or does that open the door for the CA's to walk right into my quiet life, by giving the CRA my latest info?any thoughts would be well read, much thanks. Link to comment Share on other sites More sharing options...
cabledude Posted October 2, 2004 Report Share Posted October 2, 2004 With only $300 left to eat on every month you may want to consider BK to get them off your back. I guess it depends on how old they are? They may be out of SOL in which case you really don't have to pay them and they can't make you, but they can and will threaten to. $15K and proabably at best $100 per month to work with? Someone with BK experience may want to reply...... Link to comment Share on other sites More sharing options...
undaunted Posted October 2, 2004 Author Report Share Posted October 2, 2004 The last payments made on these cards were 12/01. My understanding is that SOL starts from last payments made? This December would mark 3 years, and SOL in my state is 6. I am currently not being harassed by any CA, other than receiving 1 notice back in August, which I've done nothing about.I guess my real concern at the moment is— if I get copies of my CR will I be making it all the more easy to find me? Or should I just sit back and wait for SOL or a better financial situation before I try to address any of this?thanks for the replies. Link to comment Share on other sites More sharing options...
willingtocope Posted October 2, 2004 Report Share Posted October 2, 2004 Well, here's my thoughts...1. If one CA found you, the others will too...just a matter of time.2. You can pull your credit reports via the internet. Experian is pretty easy, the others seem to make it a little more difficult, but having EX to look at may give you a feel for what you're up against.3. You can rent yourself a PO Box at like Mailboxes, etc...and have all your credit reports sent there. You might get other CA's also, but like I said, that's going to happen soon anyway.4. A no asset BK may work...trying to hide from the CAs for another 3 years will be tough. I'd suggest confronting the problem head on and see what happens. If you pay close attention to your CRs, and deal with the CAs in writing, and record any phone conversations, and have the time to deal with them in court...you might actually build yourself an income stream suing the CAs for violations...Good luck... Link to comment Share on other sites More sharing options...
undaunted Posted October 2, 2004 Author Report Share Posted October 2, 2004 Well, I'm not sure that BK is the way to go... I've got 3 years behind me, filing for BK now, would put me out another 7+ . If SOL is 3 years out, why not wait for that, and maybe in the meantime my income situation will change and I might be in a better position to settle with any CA's that come along in these next 3 years.I'm not really looking to hide anymore, but at the same time I'm not going to stand on the corner and yell "Hey! Over Here! IOU!"Anyone have an idea of what kind of score my CR might have, based on this thread?Your thoughts are always welcome, thanks. Link to comment Share on other sites More sharing options...
Guest jeeptravel Posted October 2, 2004 Report Share Posted October 2, 2004 THIS IS NOT LEGAL ADVICE:Your 15K debt is small by some estimations, but with your income as it is, it is a very large burden imho. The best thing for your credit and for your peace of mind would be to pay the debt in full. I understand that may be impossible and that is when you examine other 'not-so-easy' options.Bankruptcy is intended for people who need a fresh start. Sometimes it can be the last step to leaving behind past financial mistakes. I applaud your willingness to 'come out of the shadows' and face your debt head-on. There is an answer, you just need to figure out the best choice.Here would be my 3 'rhetorical' questions to get you thinking:1) Have you made an imaginary budget POST-DISCHARGE. If you are still going to be in the hole all the time, then BK shouldn't be your current priority. Getting more dollars down the road should be. Work on those resumes???? You have a college loan: are you currently putting that to work? If not, I suggest you do. After all you are paying for it! (Hope I am not preaching) 2) From the time you file BK7 you will need anywhere from $100-200 up front and with your debt it may be lower. You can call some attorneys and get prices in stone, but understand it will be something you'll need cash for (more than just a few dollars discretionary money). Make a plan with an attorney on how to get that paid.3) Until you have your court appearance and subsequent discharge, assuming there are no contesting debtors, (and also several months after most likely) you will have no access to payday loans or credit of almost any kind. If you are used to those: kiss it goodbye with the BK. After 6 months to 1 year you may be able to get payday loans and some credit cards again. Make no mistake though, you can FULLY recover from a BK7 in about 5 years.4) IF YOU HAVE READ ALL THIS AND YOU STILL WANT TO GO FOR IT:a) Order your Credit Reports (I wouldn't worry about the debtors immediately finding you as a result of this- after all, you are working toward a solution with them anayway). You can get a free report online as a trial offer of any of the services out there, or you can get just one for 8-10 bucks depending on your state. If you can hold off until Jan of '05, where legislation states that you are entitled to a free one from all three.Organize your debts and account #'s and call an atorney. For some people in my circle of friends and family, 15K is just a matter of writing a check and dismissing the matter. For others I know, they need to go down the legal road I have described above. I will close by saying again that I feel the best and easiest is to pay it off, even though I know it isn't always possible. Other forum posting input welcomed?????Good Luck, it's all about what is best for you.-D Link to comment Share on other sites More sharing options...
willingtocope Posted October 2, 2004 Report Share Posted October 2, 2004 I'm not disagreeing entirely with jeeptravel, but here's a couple more thoughts...1. If its been 3 yrs or more since you last paid on your credit cards, chances are they have almost certainly been charged off...meaning the American Taxpayer has already compensated the OC for their "loss" and you don't owe them anything. The OC's have transferred or sold these accounts a collection agency...and....there is NO good reason to pay those folks anything. You don't owe them, you have no "moral" obligation to them, and giving them money will only encourage them to hassle and intimidate less informed consumers. As far as your CR is concerned, a paid collection is almost as bad as a CO...2. On the other hand, while it may be only 4+ more years until these things fall off your credit report, unless you get them settled one way or the other, they may come back to haunt you. The fact that they disappear from your CR doesn't mean some low-life CA won't try to collect. If you settle with the CA for less than the full amount, unless you're very careful in how the settlement is reached, they may sell the balance to someone else. 3. At some point, you will have a defense against collections with the SOL for your state...but...you have to get the judge to agree that its SOL and some judges could care less. The only absolute defense against collection at some later date is IIB because you have federal law on your side.4. Fees to file BK are fixed by federal law...its now $215, I think. You can do it yourself...but, an attorney will charge you another $1000 or so. And, according to BK law, the attorney's fee must be paid before papers are files.Things to think about... Link to comment Share on other sites More sharing options...
Guest jeeptravel Posted October 2, 2004 Report Share Posted October 2, 2004 Based on the info you've given (and you haven't given a whole lot) I'd say your score is likely to be lower than 500. Maye even as low as 350. If you have a lot of history with paying your bills, it's possible a BK could catapult you above 500 pretty quickly POST-DISCHARGE. Of course, dealing with the debts and/or paying them off could have the same effect.I don't know much about SOL laws, so I can't really comment on what willingtocope said. Sorry . . .-D Link to comment Share on other sites More sharing options...
willingtocope Posted October 2, 2004 Report Share Posted October 2, 2004 Well SOL is a whole nuther can of spam...SOL's are state laws and therefore up to state/county judges to enforce. In some states...like California...it is a felony to try to collect on a time-barred debt. But again, it depends on the state/county judge being up on the law.SOL is supposed to be an "absolute defense" against collection activity. Doesn't always work that way...do a search on SOL on this forum and you'll see what I mean. Link to comment Share on other sites More sharing options...
undaunted Posted October 2, 2004 Author Report Share Posted October 2, 2004 This site rocks! Thanks for all the valuable feedback, lots to consider.I'm not looking to file BK, no reason at this point... i'm not trying to buy a home, car etc.. so for the time being BK is not a consideration. Just trying to assess the pros and cons of not addressing my past debt, now.The reality is that even though I'm working, I'm broke. FLAT! I have $3 in my checking and that's it till next paycheck (two weeks away), which then half of that goes to paying on student loans in REHAB.I don't have CA's "harassing" me yet. Maybe with time that will come, and when it does, I'd like to be better prepared— that's why I am here.I've been reading about DV within 30 days of being contacted. I was contacted via mail, and never responded, throwing the letter in with the years of unpaid bills. Should I address them, or sit back and wait for another letter?I'm curious about different approaches: Take a defensive: wait patiently and quietly in the treeline for the enemies (CA)? Or offensive: Make a pre-emptive strike,—come out blazing with my empty pistol (wallet) in hand and yell, "Whatdya gonna do fellas?," and put the CA's on the defensive, all of whom hold, Weapons of Mass Destruction (laywers, litigation—deep pockets)?Thanks so much for the dialogue. Link to comment Share on other sites More sharing options...
willingtocope Posted October 2, 2004 Report Share Posted October 2, 2004 Just to make sure you're clear....you DO NOT have to DV within 30 days, you can DV at any time. The 30 day limit says that if you don't dispute within 30 days, the CA can assume the debt is valid and continue their efforts. However, once you do DV, then they are legally bound to have it listed as in dispute on your CR (don't let them try to tell you any differently...read the FDCPA menu item at the top of the page).I guess I would suggest a combination of "lying low" and "pre-emptive strike". I would at least get your 3 major credit reports (again, if you can't afford to pay, you can get your Experian on line) to see where you actually stand. The only REAL danger you have in waiting for the hammer to fall is if one of the CAs have already gotten a judgement against you. Once a judgement is granted, you only have a limited amount of time (one year, I think) to have it vacated for "improper service" or the like. If you don't get a judgement taken care of (disputed, vacated, or heaven forbid, paid) it can stay with you for 20 years...In other words, there is some danger in doing nothing...on the other hand, you probably shouldn't stand up and shout come get me, I ain't got nothing. Link to comment Share on other sites More sharing options...
undaunted Posted October 2, 2004 Author Report Share Posted October 2, 2004 Great food for thought. Thanks. Could I get free credit reports from the 3 if I apply for a credit card? Of course I would get denied, and then am I not entitled to free CR's? Or by going this way, do I only shoot myself in the foot, for having applied for a CC?In the last 24 hours, I see my life taking new direction, all from ending up in this forum. ****IF YOU ARE NEW HERE LIKE I AM, GO THROUGH THESE POSTINGS. THEY ARE AMAZING!!! THANKS FOR ALL WISDOM*** Link to comment Share on other sites More sharing options...
willingtocope Posted October 2, 2004 Report Share Posted October 2, 2004 You can get a free report if you're turned down, or un-employed, or once a year (once the new laws get implemented). Like I say, though, just go to www.experian.com and see what the free ways are there to get a report. Link to comment Share on other sites More sharing options...
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