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wabrams
Guest
masondoggy said:
You’re right. What I was thinking of is when/if you do pay off the debt, it’s seven years from that last payment debt.
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You’re right. What I was thinking of is when/if you do pay off the debt, it’s seven years from that last payment debt.
M
masondoggy
Guest
I think that idea gets spread in the credit world. It’s sad, because there’s a lot of mis-information about credit out there and people really get burned because of it. (such as advising people to close credit card accounts…VERY bad advice! When people close credit card accounts they lose valuable age and their credit score plummets.) It’s no wonder so many people struggle with bad credit with the kind of information that goes around.
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wabrams
Guest
The problem isn’t closing the accounts, it’s the proportion of available credit versus amount owed. People have a tendency to just close accounts were they owe a balance and their credit takes a nosedive.
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Patrick2340
Guest
Is it true that the credit card company cannot turn you over to collections if you are making some sort of payment, even though it is less than the minimum? Just wondering…
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wabrams
Guest
Don’t qoute me on this, but I think it just depends on the company. If you’ve made arrangements prior, 90% of the time they won’t as long as you’re making the ARRANGED payments. But if you deciede on your own to do this, they probably will.
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CindyGia
Guest
You don’t need a lawyer. I filed “pro se” (if that’s the correct term, I forgot) and I had a person draw up all the paperwork. Lawyers costs somewhere between $1200 to $2000 to do the paperwork and do basically nothing.
I used a guy I found on-line to do all my paperwork. He charged me $75.00 and gave me great advice. The filing fee was something like $250.00 and the US Bankruptcy court allows you to pay in installments, which I did.
You have to file right away because the laws are changing in October making it almost impossible for people to file a Chapter 7. If you would like the email address of the person I used to draw up the papers, I can send it to you via email.
The hearing is very simple and easy and you DON’T need a lawyer. I am proof of it and did it all by myself just this past November.
God Bless!
I used a guy I found on-line to do all my paperwork. He charged me $75.00 and gave me great advice. The filing fee was something like $250.00 and the US Bankruptcy court allows you to pay in installments, which I did.
You have to file right away because the laws are changing in October making it almost impossible for people to file a Chapter 7. If you would like the email address of the person I used to draw up the papers, I can send it to you via email.
The hearing is very simple and easy and you DON’T need a lawyer. I am proof of it and did it all by myself just this past November.
God Bless!
S
Scanner
Guest
I don’t beleive a credit card co. can’t put a lien on your house but theorectically, they can issue a “judgement” against you. When you go to sell a new house, a search for judgements against you can be issued and those judgements must be satisified before the transaction is placed. So effectively, it is sort of a lien on the house in that the debt must be satisified.
Don’t take my word for it - this is why you need to consult with an attorney. Bankruptcy discharges the debt.
Don’t take my word for it - this is why you need to consult with an attorney. Bankruptcy discharges the debt.
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Nan_S
Guest
I would agree with you about for about half of the cases. The simple truth is that a large portion of the pro-se (i.e., debtor represents self) bankruptcy cases get dismissed, because an issue is contested that the debtor isn’t prepared to handle. And neither the Bankruptcy Court nor the Bankruptcy Trustee will give you legal advice; that’s not their job.
You can succeed pro-se if you have a simple case with mostly unsecured debt, if you reaffirm - and never miss any more payments on - all of your secured debt, and (if you’re in Chapter 13) you have all your payments made through payroll deduction and don’t miss any payments to the Trustee when changing jobs.
But if you have a secured creditor who files a lift-of-stay motion to repossess your home, or you’re trying to get a car back from the bank, or the IRS doesn’t want to agree to the payment terms you are offering, or if you took out a high-interest loan secured by minor property such as TV sets and want to get the interest rate reduced, or if you miss making any payments to the Trustee, or if you have an ex-wife…
That lawyer sure comes in handy.
M
masondoggy
Guest
A credit company doesn’t “issue” a lien, they have to sue you in court. If they win, then the court issues a judgment. Also every state has a statute of limitations on debt. Once that SOL has passed, it can be used as a defense in court and they won’t be able to win the judgement. But the consumer has to know about it to raise the issue in court. Some states have a SOL of as little as 3 years on credit card debt.
A
Al_Masetti
Guest
There is a fellow named Dave Ramsey who I have heard on the radio who deals with these financial issues.
He has a web site: www.daveramsey.com
His total focus is getting out of debt quickly.
Strongly recommend checking out the Web site and maybe even calling in to the show. He must be helpful to a lot of people; he says he employs 120 people and puts on a lot of local appearances around the country.
Worth checking out.
He has a web site: www.daveramsey.com
His total focus is getting out of debt quickly.
Strongly recommend checking out the Web site and maybe even calling in to the show. He must be helpful to a lot of people; he says he employs 120 people and puts on a lot of local appearances around the country.
Worth checking out.
L
ladyrosary
Guest
Just to add my “two cents” worth (which is about all I have right now):
My husband and I were forced to file Chapter 13 this past December in order to save our home, which I purchased from my parents several year ago and which all of my children have grown up in. This place has deep sentimental meaning and attachments to our whole family. We did not do this to get out of paying our debts. We got into this whole mess because of the job situation here in Michigan. (In other words, there aren’t any, or the ones that are available, they don’t want a 40 something educated, experienced person).
In the eight years my husband and I have been together, he has had a “regular” job for only 2 of those 8 years. I worked a “real” job up until last September. To supplement our income, we began delivering newspapers during the night. This is now our sole means of support until he is able to secure a “real” job. This experience has taught us to be very frugal. We have both grown and gained a huge amount of experience that will prevent us from ever being in this situation again.
It is humbling, it is humiliating, it is depressing. We have to watch every penny we have. We have no health insurance, no retirement, and no savings. Some weeks we don’t make enough to buy groceries and every price increase (especially gasoline) has the tendency to put us into another tailspin. This will be our life for the next 2 1/2 years.
But we will get through this and be better Christians because of it. God is working in our lives and we are being trained for greater things.
My husband and I were forced to file Chapter 13 this past December in order to save our home, which I purchased from my parents several year ago and which all of my children have grown up in. This place has deep sentimental meaning and attachments to our whole family. We did not do this to get out of paying our debts. We got into this whole mess because of the job situation here in Michigan. (In other words, there aren’t any, or the ones that are available, they don’t want a 40 something educated, experienced person).
In the eight years my husband and I have been together, he has had a “regular” job for only 2 of those 8 years. I worked a “real” job up until last September. To supplement our income, we began delivering newspapers during the night. This is now our sole means of support until he is able to secure a “real” job. This experience has taught us to be very frugal. We have both grown and gained a huge amount of experience that will prevent us from ever being in this situation again.
It is humbling, it is humiliating, it is depressing. We have to watch every penny we have. We have no health insurance, no retirement, and no savings. Some weeks we don’t make enough to buy groceries and every price increase (especially gasoline) has the tendency to put us into another tailspin. This will be our life for the next 2 1/2 years.
But we will get through this and be better Christians because of it. God is working in our lives and we are being trained for greater things.
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rayne89
Guest
My heart goes out to you. I will pray for your husband’s emplyment situation. I grew up in Sterling Hts. My parents still live there.
I have a dear friend whose husband has always had a good paying job but now to do cut backs they are struggling to keep their home. A home they had built from the ground up. So many of my friends are suffering financially.
My husband was laid off two years ago and it was very scary, luckily for us he was eventually called back. He searched constantly for work during his lay off but there was simply nothing out there. It was absolutely critical they we retained our health insurance because of my heart problems. The cobra payment was absolutely staggering. Many people from our church stepped up to help us out. We were so moved that people who didn’t even know us would help us. I know for certain St. Blase ( 15 Mile Rd.) has a food pantry and many kind people there with generous hearts.
It was a very humbling experience but you realize that is what being part of the body of Christ is. We need each other. Someday when you are on your feet, you may be in a position to reach out to someone else.
This has been a learning experience for us as well. And it has strengthened our faith despite all the trials. God will provide, one way or another. God Bless you and your family.
ladyrosary:
I have a dear friend whose husband has always had a good paying job but now to do cut backs they are struggling to keep their home. A home they had built from the ground up. So many of my friends are suffering financially.
My husband was laid off two years ago and it was very scary, luckily for us he was eventually called back. He searched constantly for work during his lay off but there was simply nothing out there. It was absolutely critical they we retained our health insurance because of my heart problems. The cobra payment was absolutely staggering. Many people from our church stepped up to help us out. We were so moved that people who didn’t even know us would help us. I know for certain St. Blase ( 15 Mile Rd.) has a food pantry and many kind people there with generous hearts.
It was a very humbling experience but you realize that is what being part of the body of Christ is. We need each other. Someday when you are on your feet, you may be in a position to reach out to someone else.
This has been a learning experience for us as well. And it has strengthened our faith despite all the trials. God will provide, one way or another. God Bless you and your family.
K
kellyb32
Guest
It’s hard to get above the water when less than ideal situations arise. Sure we’ve all been in over our heads at times, but when unexpected things happen, stuff beyond your control…sometimes you need a way to start fresh without killing yourself in order to do it.
If you are only making X amount of dollars each week and your expenses, not luxuries mind you, living expenses are more than the money you are bringing in, if you can’t find another job or jobs won’t hire you because you’re “overqualified”, when medical bills are piling up and you are possibly unable to workwhat is someone to do?
We were able to find a lawyer who agreed to take our case, told us to pay the filing fee (8 1/2 years ago it was $175) and tell any creditors who called to contact our lawyer. So we of course skipped some payments, even those we were only paying a few bucks to each month, and got the ball rolling for bankruptcy.
The lawyer agreed to a payment plan for us for the remainder of his fee and once the fee was paid then he finished the process. It took us 6 months from start to finish because we had to pay him first before we were done with our bankruptcy, we went to court and had the debts discharged.
Now 8 1/2 years later we are in debt again, but not anything NEAR what we were before because of unexpected situations and the fact that we now have soon to be 4 children instead of only one and we’re still making the same amount of money we were 8 1/2 years ago. With cost of living gone up, gas prices the way they are, and everything else to take into account, people like me are having a really hard time making ends meet.
It’s not shameful to file bankruptcy. We still got a house 3 years after filing at the going interest rate at the time for a 30 year mortgage. We refinanced 2 years ago at less than 5% for a 15 year mortgage and our payments were less. Our credit is tip top, but we don’t make diddly squat for income to support a family of soon to be 6.
Bankruptcy isn’t the end of the world. A couple months after filing we started building our credit again, that’s why we qualified for our house loan. It’s just being patient (something I lack when it comes to money…read my post
) and taking things one day at a time.
If credit card companies don’t want to work with you to lower your interest or payments, then they have to deal with that.
Sure you hear “Oh, consumers have to pay the debts of those who go bankrupt with higher interest rates and fees”, well, consider it helping out a fellow American who’s down on his luck. A lot of us didn’t get into debt just to keep up with the Jones’. We got into debt to try and survive because there were no other options available at the time.
God bless!
If you are only making X amount of dollars each week and your expenses, not luxuries mind you, living expenses are more than the money you are bringing in, if you can’t find another job or jobs won’t hire you because you’re “overqualified”, when medical bills are piling up and you are possibly unable to workwhat is someone to do?
We were able to find a lawyer who agreed to take our case, told us to pay the filing fee (8 1/2 years ago it was $175) and tell any creditors who called to contact our lawyer. So we of course skipped some payments, even those we were only paying a few bucks to each month, and got the ball rolling for bankruptcy.
The lawyer agreed to a payment plan for us for the remainder of his fee and once the fee was paid then he finished the process. It took us 6 months from start to finish because we had to pay him first before we were done with our bankruptcy, we went to court and had the debts discharged.
Now 8 1/2 years later we are in debt again, but not anything NEAR what we were before because of unexpected situations and the fact that we now have soon to be 4 children instead of only one and we’re still making the same amount of money we were 8 1/2 years ago. With cost of living gone up, gas prices the way they are, and everything else to take into account, people like me are having a really hard time making ends meet.
It’s not shameful to file bankruptcy. We still got a house 3 years after filing at the going interest rate at the time for a 30 year mortgage. We refinanced 2 years ago at less than 5% for a 15 year mortgage and our payments were less. Our credit is tip top, but we don’t make diddly squat for income to support a family of soon to be 6.
Bankruptcy isn’t the end of the world. A couple months after filing we started building our credit again, that’s why we qualified for our house loan. It’s just being patient (something I lack when it comes to money…read my post
) and taking things one day at a time.If credit card companies don’t want to work with you to lower your interest or payments, then they have to deal with that.
Sure you hear “Oh, consumers have to pay the debts of those who go bankrupt with higher interest rates and fees”, well, consider it helping out a fellow American who’s down on his luck. A lot of us didn’t get into debt just to keep up with the Jones’. We got into debt to try and survive because there were no other options available at the time.
God bless!
C
CinciMom
Guest
My husband works for Lexis Nexis. They have a website called www.lawyers.com It is Martindale Hubble’s website
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rayne89
Guest
Ok guys. We had an appt with a lawyer which we found out today she had to cancel. (I was in the hospital again this week for chest pain so we didn’t get the message earlier.) I was already stressed and now I’m like great are we going to be able to get another attorney in time for the cut off date in Oct.? Her office referred me to another attorney. He can see us wednesday, thank God.
I’m a crabby nervous wreck. I can’t wait to put this behind us. Please pray all goes well. Thanks!
I’m a crabby nervous wreck. I can’t wait to put this behind us. Please pray all goes well. Thanks!
B
BOBKAT
Guest
That’s not true I had a judgement put on my house by Discover. Thank God I paid it off. If the credit card wishes they can sue you and at that point put a lein on your house.
Kathy
cargopilot:
Kathy
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BOBKAT
Guest
Hi I work for Reed Technology which is a Lexis Nexis company, I wonder If I know him.
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masondoggy
Guest
Yes, a credit card company can sue you and get a lien or wage garnishment, but it is still “unsecured” debt. “Secured” debt would be an auto loan or a mortgage. The car or house would be used to pay the debt in the event of default.
A credit card (or a medical bill, utility bill, etc.) is different. There’s nothing that will be “repoed” in the event of default. It’s riskier for the lender.
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LostThenFound
Guest
Al Masetti:
I strongly agree Al’s advice. I’ve listened to Dave Ramsey on the radio and he has helped thousands of people. He was even on “60 Minutes” not too long ago. This guy knows what he’s talking about—very practical advice. I believe he was actually broke so he’s been there. When people call his show, he will refer them to someone in their area who can help them. On his website, there is a “bankruptcy” link: daveramsey.com/etc/cms/index.cfm?intContentID=3725
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Rob_s_Wife
Guest
We filed bankruptcy 7.5 years ago and it was the smartest thing we ever did! Credit counceling DOES hurt your credit and very often does NOT help you get out of debt.
We did not “blow off” our responsiblities. (Unlike 100’s of million dollar corporations!
) We suffered through 2 years of medical problems, come and go work (a side effect of health problems!), the birth of our 2nd child, and having to move before we finally decided bankruptcy was the best thing to do for our the future of our family.
We did not put everything in bankruptcy. Student loans are not allowed. We also worked with the loan holder on our only car and a Target card. The car we needed and we honestly felt the Target balance was the only one we could afford to make payments on. (After we paid it off, we closed it.) I would say 90% of our debt was medical and living expenses during a time of bad health and job loss - which started 1 month to the day after I quit my job while 6 months pregnant with our 2nd to stay home. Even with the bankrupcy, it took us nearly 4 years to reach a point where we weren’t in the hole every payday. Without the bankruptcy, there is not a doubt in our minds that we would not be where we are now. If we had gne the consumer credit counseling route, we would’ve retired still dealing with those debts and probably be divorced.
2 years after bankruptcy we bought our first home, which we still have. We still do not have a single credit card or loan outside of our mortgage. Oh, and the 12 passenger van we needed with the birth of baby #7 last year - a 2 year loan through our credit union. My student loans will be almost completely paid off after we get a tax refund in February (we hope!).
Bankruptcy is a way to re-start. If you can re-start in a reasonable amount of time without it, then by all means do so! But the important thing is to not repeat the problem afterwards.
The problem with credit counseling is that it encourages credit management, when what people really need to do is stop using credit. Period. If you don’t have the money in your bank, then you need to do without it 99% of the time. Most people who use credit cannot afford it, managed or otherwise.
We did not “blow off” our responsiblities. (Unlike 100’s of million dollar corporations!
) We suffered through 2 years of medical problems, come and go work (a side effect of health problems!), the birth of our 2nd child, and having to move before we finally decided bankruptcy was the best thing to do for our the future of our family.We did not put everything in bankruptcy. Student loans are not allowed. We also worked with the loan holder on our only car and a Target card. The car we needed and we honestly felt the Target balance was the only one we could afford to make payments on. (After we paid it off, we closed it.) I would say 90% of our debt was medical and living expenses during a time of bad health and job loss - which started 1 month to the day after I quit my job while 6 months pregnant with our 2nd to stay home. Even with the bankrupcy, it took us nearly 4 years to reach a point where we weren’t in the hole every payday. Without the bankruptcy, there is not a doubt in our minds that we would not be where we are now. If we had gne the consumer credit counseling route, we would’ve retired still dealing with those debts and probably be divorced.
2 years after bankruptcy we bought our first home, which we still have. We still do not have a single credit card or loan outside of our mortgage. Oh, and the 12 passenger van we needed with the birth of baby #7 last year - a 2 year loan through our credit union. My student loans will be almost completely paid off after we get a tax refund in February (we hope!).
Bankruptcy is a way to re-start. If you can re-start in a reasonable amount of time without it, then by all means do so! But the important thing is to not repeat the problem afterwards.
The problem with credit counseling is that it encourages credit management, when what people really need to do is stop using credit. Period. If you don’t have the money in your bank, then you need to do without it 99% of the time. Most people who use credit cannot afford it, managed or otherwise.
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