for a friend

[anti-something]

i guess eventually someone had to find out i was a sucker for helping people out..

so my friend (TX) has nothing but a big 16K CC debt. they jacked his interest over 20% and he has lost all enthusiasm for paying it, since he can no longer afford to.

he was considering CCCS, but hasnt (phew) he was considering borrowing it from me but i dont have it.

i'm thinking Ch. 7

Advice?

[willingtocope]

BK 7 would be tough with only (!) 16k in debt.

If its all one card, I'd suggest trying to get on their hardship program. A little "gee, I sure would like to pay this but you guys make it so hard and I can't afford..." type letter to the executive offices might help.

[anti-something]

ok, so it would be difficult to do a Ch 7 on that?

he has an old truck, thats about all his worldy possessions. his income is seasonal, so i dont think Ch 13 could work..

i did tell him if they took him to court etc and got a judgment he would be paying less interest..

[willingtocope]

With no assets and little income, he may be judgement proof. Maybe talk it over with a legal aid attorney?

[anti-something]

hmm, is there any way we can make it go to a judgment, like some type of agreement? so it gets done soon, you know, like before he owes them 20k??

[willingtocope]

Don't know. Again, I'd suggest legal aid.

On the other hand, if he can't pay 16k, he can't pay 20k either so the amount of the judgement probably doesn't matter.

[LadynRed]

The AMOUNT of debt, high or low, does not matter in Ch 7 (well, it does but who among us has $295,000 in debts ???). If he can't pay the 16K, has few assets, variable income and barely gets by on a normal basis, then there's no reason Ch 7 can't happen. DISPOSABLE income is the key.