Jump to content

unique situation


airahcaz
 Share

Recommended Posts

If an employed person cannot declare any chapter of BK for whatever personal reason, yet has defaulted on CC debt as well as mortgages (housing underwater, etc), how would one deal with the outstanding 5 figure CC debt?

I assume thatr the reason you canniot declare BK is because your income

from your job makes that prohibitive.

My assumption is based on firends who both were working when they had to declare BK.

Whatever your reason, I would endeavor to contact your creditors and try to settle with them.

Or wait it out and see what happens.

Link to comment
Share on other sites

Guest usctrojanalum

read up on exemptions to protect your money. and start using cash and money orders to pay for living expenses. do NOT make your credit cards a priority over other necessary bills such as food/shelter/clothing etc things like that. Pay for everything you need first and if there is any left over stash it away in a safe as a savings so if you do get sued maybe you have some cash to negotiate.

Link to comment
Share on other sites

If an employed person cannot declare any chapter of BK for whatever personal reason, yet has defaulted on CC debt as well as mortgages (housing underwater, etc), how would one deal with the outstanding 5 figure CC debt?

Yeah, I got nothing....

Like Donq says, wait it out and see what happens...

Link to comment
Share on other sites

read up on exemptions to protect your money. and start using cash and money orders to pay for living expenses. do NOT make your credit cards a priority over other necessary bills such as food/shelter/clothing etc things like that. Pay for everything you need first and if there is any left over stash it away in a safe as a savings so if you do get sued maybe you have some cash to negotiate.

Unfortunately NJ doesn't allow much in exemptions for judgments. Just $1,000 and, I think, one kid.

Link to comment
Share on other sites

I assume thatr the reason you canniot declare BK is because your income

from your job makes that prohibitive.

My assumption is based on firends who both were working when they had to declare BK.

Whatever your reason, I would endeavor to contact your creditors and try to settle with them.

Or wait it out and see what happens.

wait it out till the SOL on CC debt? and foreclosures?

Link to comment
Share on other sites

take a bankruptcy attorney up on their free first visit and see where you stand and what can be done rather than guessing. I was surprised at the difference between what I found on the internet was the standard and what they are using to determine exempt assets and income.

Link to comment
Share on other sites

If an employed person cannot declare any chapter of BK for whatever personal reason, yet has defaulted on CC debt as well as mortgages (housing underwater, etc), how would one deal with the outstanding 5 figure CC debt?

Unless your personal reasons have something to do with fraud, I would suggest as a possible solution contacting the credit card companies and working out a solution that lined up with "your" desired outcome.

If you have already decided that you can not repay the credit cards under the current circumstances then you have nothing to lose by proposing an alternate repayment plan.

You will be surprised at how willing creditors are to work out something rather than having the account become non-performing.

Link to comment
Share on other sites

Unless your personal reasons have something to do with fraud, I would suggest as a possible solution contacting the credit card companies and working out a solution that lined up with "your" desired outcome.

If you have already decided that you can not repay the credit cards under the current circumstances then you have nothing to lose by proposing an alternate repayment plan.

You will be surprised at how willing creditors are to work out something rather than having the account become non-performing.

no nothing fraudulent, but there is an element that those CC owned by JDB's will never file suit, or if they do, won't have the paperwork to support a case. Yes, an element of not ever having to pay - and of course the risk in 'waiting'

Link to comment
Share on other sites

no nothing fraudulent, but there is an element that those CC owned by JDB's will never file suit, or if they do, won't have the paperwork to support a case. Yes, an element of not ever having to pay - and of course the risk in 'waiting'

What about the element of suffering from a poor credit rating for years, not to mention that a poor credit rating might effect your insurance rates and ability to obtain or maintain employment. Just in case these are issues that are important to you...

Link to comment
Share on other sites

If the CC debt is 5 figure, you run the risk of interest accruing and the OC filing suit for themselves instead of selling to a JDB. Call and see if you can work it out. I have had two CC work with me on a hardship program. Some of the others have sued me WELL before SOL. Come up with a plan, don't just bury your head in the sand. That is a losing strategy for sure.

Link to comment
Share on other sites

wait it out till the SOL on CC debt? and foreclosures?

Concentrate on you home first......... and what is needed for that and food.

Basics first for you and your family.

Let the credit cards slide, if you cannot get them to work with you or if you cannot afford anything they may offer.

You will learn on here how to manage that, IF they sue or sell off

your accounts.

Link to comment
Share on other sites

If an employed person cannot declare any chapter of BK for whatever personal reason, yet has defaulted on CC debt as well as mortgages (housing underwater, etc), how would one deal with the outstanding 5 figure CC debt?

The best thing to do is to settle with the collection AGENCIES before it goes to a LAWFIRM. They lawfirm does not have to give you a break, but for the first 30-90 days they will be willing to talk about 50%+ settlement. The debt collection agencies will give you a much better break.

If you have judgements against you, then you are screwed. They will hold your accounts and garnish just about everything. Dont let it get that far.

Just think about it, do you really expect to do any better than 50%? There is no way you can get that if you go to court, the judge will simply give them a judgement and you will get stuck with the full amount, plus their lawyer and your lawyer on top of that.

They will allow you to do a payment agreement, especially if you are in bad shape, lost job, lost home, ect. You will have to pay the full amount, but its better than nothing.

The best way to go is to transfer the debt and consolidates it by taking out a loan at the same rate, and using it to pay the debt off. That way, you end up getting all the debt off your back, improving your credit by paying the new smaller and reasonable debt, and you cut a massive amount of the debt off at the same time.

Link to comment
Share on other sites

...

The best way to go is to transfer the debt and consolidates it by taking out a loan at the same rate, and using it to pay the debt off. That way, you end up getting all the debt off your back, improving your credit by paying the new smaller and reasonable debt, and you cut a massive amount of the debt off at the same time.

How is someone that is behind in their payments going to qualify to transfer the debt???:confused: Also, transferring debt does not reduce debt - it just changes the payee. You reduce debt by paying it off.

Not a practical solution. If you are behind in your payments you are not going to get someone else to bail you out (unless it is a relative and why would you drag down a family member??). However, as pointed out above, if you think this is temporary, you can usually work out a deal with the OC and the hardship department. The most difficult part is getting to the hardship department because the CSR's don't easily let you through. Just be insistent.

If it is too late for that, then you are onto plan B: using the procedures here to work through your debt. But, I have to ask (and you don't have to answer): why wouldn't you consider a BK? The recovery time is much quicker than if you fight all the debt without filing. :arrow: Also, as pointed out before, not all the information you see on the internet is accurate. :cry:

Interview a couple of BK attorney's to find out the real info for your situation. Try to stay away from the "mill type" attorneys (the ones that advertise on TV) as they are usually not as helpful in complicated BK matters.

Link to comment
Share on other sites

The best thing to do is to settle with the collection AGENCIES before it goes to a LAWFIRM. They lawfirm does not have to give you a break, but for the first 30-90 days they will be willing to talk about 50%+ settlement. The debt collection agencies will give you a much better break.

If you have judgements against you, then you are screwed. They will hold your accounts and garnish just about everything. Dont let it get that far.

Just think about it, do you really expect to do any better than 50%? There is no way you can get that if you go to court, the judge will simply give them a judgement and you will get stuck with the full amount, plus their lawyer and your lawyer on top of that.

They will allow you to do a payment agreement, especially if you are in bad shape, lost job, lost home, ect. You will have to pay the full amount, but its better than nothing.

The best way to go is to transfer the debt and consolidates it by taking out a loan at the same rate, and using it to pay the debt off. That way, you end up getting all the debt off your back, improving your credit by paying the new smaller and reasonable debt, and you cut a massive amount of the debt off at the same time.

Or not. You could also make them prove everything, painstakingly. Challenge them, see if they're up for a real fight.

And you can learn the defensive ropes: How to become judgment proof...and the laws of your state concerning how much, if any, garnishments are allowed. Some states won't allow them. And some states have qualifiers like "head of household", etc.

And BK, usually the best decision of all, contrary to popular advice against....

IMO, no one owes a CA or its representative law firm a dime....

Link to comment
Share on other sites

Achilles even types like a debt collector. Borrow money to pay back a loan you cannot afford to make payments on. xThudx

The best thing to do is to settle with the collection AGENCIES before it goes to a LAWFIRM. They lawfirm does not have to give you a break, but for the first 30-90 days they will be willing to talk about 50%+ settlement. The debt collection agencies will give you a much better break.

If you have judgements against you, then you are screwed. They will hold your accounts and garnish just about everything. Dont let it get that far.

Just think about it, do you really expect to do any better than 50%? There is no way you can get that if you go to court, the judge will simply give them a judgement and you will get stuck with the full amount, plus their lawyer and your lawyer on top of that.

They will allow you to do a payment agreement, especially if you are in bad shape, lost job, lost home, ect. You will have to pay the full amount, but its better than nothing.

The best way to go is to transfer the debt and consolidates it by taking out a loan at the same rate, and using it to pay the debt off. That way, you end up getting all the debt off your back, improving your credit by paying the new smaller and reasonable debt, and you cut a massive amount of the debt off at the same time.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.