It has been 3 years since I stopped paying on my credit card debt, and the calls have stopped. I would now like to improve my credit rating, but feel the additional fees they had assessed are ridiculously high. I’d like to call and offer to settle the debt (of course getting it in writing from them) for about a 3rd (less if possible) of what is now being asked of me.
I’ve been renting for 3 years now after filing Chapter 13 in 2007. I’m converting to a 7. Will I be able to get a mortgage once the 7 is filed very soon after? My lease is up in May. I don’t have anything for a down payment or closing costs.
They will not hire me because they do not care what circumstances lead to bankruptcy. And each company who runs my credit history, this puts an "entry" on my credit, which makes my credit score go down even further. I cannot go without a job for another 2 or 3 years. Help!
In November of 2006 my 00 debt with chase bank went into collections. A year later I called a lawyer who told me that if I haven’t been taken to court yet I probably would not. Well almost 3 years later and after the debt has been sold several times, I am being sued by lawyers representing North American Recovery Corp. I was told by Forward Properties (findaccount@gmail.com) that the current owner of my debt was the lawyers and gave me their phone number. I was served papers by the local sheriffs office and am supposed to appear in court on Sept. 24th. The first set of papers said that both parties had to appear on court and then i got a letter from the attorneys today stating they requested from the judge if they could be absent and do a phone conference while I still had to go to court. Is there any way to settle this if the lawyers have it and avoid going to court? The initial balance I owed on the account was just shy of 00.00 and the rest is all late charges and interest. I’m not sure how to attack this, who I should call etc etc, without incurring lawyer expenses of my own. I don’t have a number to contact North American Recovery Corp and cannot find one anywhere on the web. The one search that came up for that name was for another North American Recovery and they said there is another one out there. The debt is orig. from ohio and I now live in florida. Please help me with this headache.
After trying to find ways to be able to take care of our responsibilities we have come to the last resort and that is to file bankruptcy. We don’t own any homes or any real property. what I am curious about is which is better chapter 7 or chapter 13. We want to be able to start saving a soon as it done and when feesible start rebuilding credit. Our credit card debt is only 00 which is a lot, but it could be worse. We just had two bad years with this one being the worse. I am looking for advice on the best way to go between the two. Chapter 7 or Chapter 13 and why.
We are not happy about doing this as we have tried everything. We don’t have anything of value and we have tried to pawn stuff but couldn’t get .00 for most. We live very modestly. So please do not answer this question if you are going to be negative.
Thank you so much. We want to do the right thing so we can start over and never have to do this again.
Thank you so much for all that has given advice so far. I guess I need to add just a few details to make the situation clearer.
As I stated it has been a bad 2 years, actually almost 3 years. I got real sick and had to leave my job and am now on disability. My husband took on a second job a year ago. He pays child support. Between the two of us we have 5 kids between the ages of 9-16. We have two vehicles, which one is in the shop. We also are surrendering this vehicle.
We have an attorney and he is recommending chapter 13. I (we) have a lot of medical bills. After I had to leave my job I couldn’t afford the cobra payments for continued health insurance. To maintain health insurance with my husbands employment (state worker) would have cost more than the cobra payments.
My ex- husband filed bankruptcy and I did not know that anything he had when we were together, came back to me.
I never thought I would get sick and have to quit work. I was not prepared.
I have about 00 credit card debt on about 4 cards total. The debt has been in collections for 2 to 3 years. I have been working on repairing my credit but these 4 cards have done damage because I wrote them off. Should I contact these credit card companies and settle the debt and If I do will that have any effect on my credit score or will the score remin he same or will my score improve because I have settled the debt.
I have a good job now, and make pretty good money. I got all my college credit cards paid off, except for one. I was told that I can "settle" that credit card debt for approximately 0 less than what the full balance is (settle the ,100 debt for about ,650 if I paid in full). Problem is: I can afford to pay in full the whole ,100…it is already on my credit report as negative because of it being delinquent so much (several times in about 3 years with no payment on the debt for 3-4 months). Someone told me if I settle for less, it will be worse on my credit report. But if its already negative…what is the better option? Keep in mind also that I closed the account about 2 years ago. Should I pay it off fully, or just settle and save money? Will it ever show up as positive on my credit report? Or just as "closed/paid off" status. Which is better? Sorry about all the parts to my question! 
Please help!!
With subprimes coming to an end (about time), Now it’s time for the Option-arms and Alternative A-papers, which will tack on another trillion or so in write offs for companies which are already tinkering on bankruptcy (even with the bailout)
then in about 2-3 years, we’re going to see the credit crash as those millions of americans who have tens of thousands in credit card debt and other non-mortage loans default, especially if they start to lose jobs / give up as buying power decreases.
Heck, In my ranked MBA program, a vast majority of my fellow students have 10-25k in credit card debts which they just plan on paying off with their "high paying" MBA jobs- which they aren’t getting because everyone has hiring freezes. If these are supposed to be some of the "smart ones" among us, what do you make of the rest?
Although in the financial discussions, there seems to be backlash against the media for saying that the "majority of americans" are in MAJOR debt, as in fact it’s only a "very small percentage" (44%). Now, these articles are literally stating 44% is a small percentage- and that 55% are being very good trying to pay their bills off in time. However, I also read that the majority of bankruptcy’s are people who "do not spend wildly, but are in debt to to other reasons such as loss of jobs or health problems". If the job market turns downwards, buying power decreases, and salaries don’t keep up with inflation would that not suggest that even those who "try" are likely to rack up more debt? and isn’t it likely that this 44% is likely to increase to 50, 55%? In this case we are saying atleast almost 50%, and potentially more than 50% are likely to run into major credit and debt issues?
Then with credit card companies such as American Express already tinkering on bankruptcy, a CC card company going under would only add to the fun.
That in itself could be the next great depression. What do you think?
Now I could be taking this a little far, and I don’t expect anyone to agree with me beyond this, however, I raise yet another question- If over 1/2 of america loses their buying power and credit-worthyness all together, based on what I see in the Government now, I would presume that they would feel the need to step into action, and bailout the individuals- and in this situation, it seems like the only action which they could do is to take control over many aspects of the country, essentially creating an extreme socialist culture overnight.
Although I have my savings spread in Euros, Rupees, and Dollars, the intense globalization occurring as of the last 10 years means that money isn’t safe anywhere. So now I’m thinking maybe I should just rack up 30k in debt since I’ll be in the doghouse with everyone else anyway, and 5-10 years from now we’re all going to be in the same position whether we have 000 in the bank, or -000 in our credit history.
Well, it is ashamed to ask this question but it is true that I’ve been living in this condition for couple years now and it made me so depress because of my personal financial problem. But I am still hoping and trying to find everything I could to recover my credit. I hope I will get some advise from you guys out there to help me start rebuild my financial life again.
Since last 5 years ago the first time I moved to this country I started apply my first credit card with US Bank, I’ve been living so happy with it, I thought it was cool when using credit card, I spent money like a rich kid, and I got a really good credit, then I applied for any other cards from one bank to other banks till I ended up with 5 different credit cards. Then 3 years gone by I couldn’t handle these credit cards, I ran out of control and ended up with a balance of 22K at the age 27 years old now, so still there is a long way to go, if I am keep paying the minimum payment like this I will end up paying those creditors for my whole life. I did try credit card consolidation but it just reduced my interest rate Now at this time I decided to go with debt settlement company in order to get rip of this debt and start a new life, but of cause it gonna take me couple years to settle this 22K debt. Now I m paying the settlement company 0/month for 28 months to settle my debt.
So first of all please ignore my grammars I know you understand what I am talking about, but I am seeking for advise from you guys out there:
1. I can possibly maintain my monthly payment of 0 to 0 toward my debt, so is there any alternative way beside debt settlement and bankruptcy to get rip of this debt? now my credit score gone so bad and there is one collection on my credit already, and soon there will be more as I am enrolling in this debt settlement.
2. I start looking at peer to peer loan and sound like an other option for me as long as I have a co-borrow with a good credit, but I am kind of hesitated and not sure how legitimated it is. Can anyone advise me if I should go with it?
I am making 90K from my job but I am still living in this horrible life because of my debt. This is a really bad experience that I am currently having in my life and I hope everyone who read this post will learn from what my mistake was, and won’t go on the same path as me.
Yes I will looking into my daily living expense and hope I will cut some of them. Originally, it was 35K on my balance but then I tried to sell most of my asset (Stock, I don’t have a house) and brought it down to 22K. So at this moment of 22K debt I have nothing beside my monthly salary. I am so upset when I see most of my friends now they bought houses even they make less money than me, I was really poor in my money management.
Am considering debt settlement but afraid that the banking instituion I work for will view it negatively if known with the bad effect it will have on my credit for the next 2-3 years until complete. Can they terminate you for that? Live in Florida, not sure about differences in state, I know Florida can be unique.
My husband and I recently purchased a house. Right before our purchase we found out about a delinquent credit card. To make a long story short, it was a credit card that was in my husband’s name that he was to use when he was in college that his mom was supposed to be paying for. My husband had no idea that there was a delinquency until we were notified by our lender. The account has been closed since 2002. It states on his credit report that the "account closed at consumers request, charged off account, bad debt; placed for collections; skip." We do not want to bother his Mom about this. After no communication with Discover, for 5 years, we have now received a letter from Northstar Location Services, a collection agency (not from Discover), for a settlement amount which is 40% of the debt. What should we do, contact Discover, deal with the collection agency, or something else? I realize everything needs to be in writing beforehand, but can anyone advise me on this at all?
I will check out your other posts, Studly, thanks…as far as my concern with it, it is mainly because of the recent contact with the collection agency now after so many years. We were still able to get the loan for our house, so I am not really concerned about that part of it. Since it "technically" wasn’t our debt, but my mother in law’s, the bank didn’t really care. Actually the amount was pretty significant, 00 with an offered settlement of 00, which is why I’m extremely surprised that we were not contacted before about this. I believe the statute of limitation on credit cards is 3 years in our state. I know they can still take us to court over it but its probably unlikely since the statute of limitations has run out. I just don’t want to settle on an amount and still have it show up on our credit history for another 7 years. I think this just may be a last ditch effort by the collection agency to get some money and I just want to make sure we make the right decision.
I have completed all my back tax returns but have not yet filed them (2005-2008) and have come up with a tax owed of around ,000 which will surely be at least -,000 by the time penalty and interest are added in. My 2004 returns shows me owing ,000 and the IRS has already started the levy process against my personal income last week but made an error on the form so I have dodged a bullet until they get it corrected.
I spoke with the IRS this morning and told them how much my gross and taxes were for the 4 years I haven’t filed and they have asked me to fill out a collection information statement form 433F and have given me until Monday to call them back and give them the info on the phone.
Due to some huge unpaid medical bills, my debts outweigh my assets by at least 3 to 1 (assets ,000, debts including ,000 tax are around 0,000).
I have around ,000 cash saved, and ,000 equity in my house but cant find a lender because my credit is terrible.
Any suggestions? Will the IRS be able to give me an installment plan or could I opt for an offer in compromise? Or is bankruptcy an alternative?
I have never been in such a poor financial condition in my life.
Thanks.
Can I possibly do and offer in compromise? I realize now that federal taxes can not be discharged in a bankruptcy. Can the IRS do an installment agreement for ,000 or is the maximum ,000?
Thanks for all the advice but please get off your pulpits. Facts only please, no criticism. I know the situation I am in and how i got here. You dont need to remind me and/or accuse me. I just came here for answers. So lets stick to the answers people.
Any answers about the possibility of Offer In Compromise?
Can I do an installment contract for ,000 if I can pay it within 3 years?
AFTER I FILE ALL RETURNS DUE AND OWE ,000, CAN I GET AN INSTALLMENT AGREEMENT? IS IT POSSIBLE?
About 3 years ago my life turned upside down, I had clinical depresion, lost my job and quit school. I did not care about the world, about six months ago I had major surgery and now I owe about ,000 in medical bills, I have a ,000 credit card judgment on my credit. I need a fresh start. How do I file bankruptcy? I don’t own anything, not home or car. What can I do? Please help me.
I am about 30,000 in debt, mostly from credit cards.
I was married already when the debt occured but they are all in my name, not my husbands. This weighs on me alot. I stopped paying on them about 3 years ago. It got very over whelming.
We are wanting to buy a house in about 2 years. I dont know what to do file bankruptcy, offer a settlement, or continue not paying. Alot of them are "charged off as bad debt" or in collection accounts"
What is in the best interest for me and my family?
Take home pay is about 30,000 a yr. We still have to save for a down payment on a house. We have rent, insurance, gas, electric, internet, tv, phone and all the obvious, normal bills to pay too.
I will answer all questions. And I Thank You for any advise any one has to offer.
I was talking to a friend of mine this morning and he was telling me he was going to do debt settlement even though he still had the ability to pay his bills. He said he would get the settlement company to get his balances on credit cards and unsecured debt cut by 40% or more, then make a lump sum payment right away and his debt would be cleared with almost no negative effect on his credit. He said usually what happens is you take from 1 to 3 years to pay off the amount and in that time it reflects poorly on your credit, but as soon as you pay it off it is as if it never happened. Is this true? If so, why doesn’t everyone do this? It sounds like he is a little mis-informed? Or is it true?
H.R. 1106 has a clause allowing one to put their primary residence into a bankruptcy, therefore lowering the monthly payment to an affordable one. At this time the wealthy can put a vacation home, boat and airplane into a bankruptcy.
I am 71 years old diabetic with congestive heart failure. I have lived in my home for 36 years. 10 years ago I went to my bank asking for a business loan. The banker suggested I take the equity out of my home and and change my loan to an adjustable loan. For the first 3 years it was fine. However my business failed and I’m on social insecurity. I have emptied my savings, sold my furniture and jewelry to pay the ever increasing mortgage. My monthly income is 3.00 a month and my mortgage now is 23.00 per month. If I cannot get help from the courts, my only other alternative is suicide.
To the best of my knowledge H.R. 1106 was passed by the senate and sent to the congress last week and is stil sitting there.
Hi, my dad past away 3 years ago and my mom never worked, so when he died (he was 46) only had 100k for her and an annuity. She spent all the money on fixing the house, like my dad wanted, and paid off all the debt they had. The annuity brings in 0 and her bills are triple that! She’s financially dumb! She listens to nothing we say. She does have a job now, but only pays 5.50/hr.
She also has 2 vehicles, one leased and one on a loan, fully financed. She has come to the point of them sending the repo papers, but she pays them eventually, she asks for money from family.
Should she file for bankruptcy?
Thanks for all the advice so far….
To answer some of the questions…..
1. she has two vehicles because my sister is in the same situation (spending more than she makes), newlyweds and already having trouble, so my sister has one of the cars!
2. I have bought books for her, but she’ll read maybe 10 pages! She does not want to sit down and see the whole picture, she use to do that with my dad.
3. She owns the home, she paid off a HELOC after my dad died.
4. She has canceled her sat., cell, pest control and is on a basic land line service. All she has is her debt.
5. She’s living off of her CC’s because she uses her 0 to pay the car bills and maybe part of the care insurance. My grandmother gave her ,000 last month and paid maybe 4 bills, including the cars, and still ended up over drafting 0 because she ate out too.
6. I’ve told her to sell, i’ve even posted an ad in craigslist myself, but she says she can’t sell because she needs a car! So frustraiting.
I am currently 30 years old and a stay at home mom with 1 kid and 1 on the way. I do not own anything in my name. I plan on going back to work next year by March 2010. I had a credit score of 700 about 3 years ago. I lost my job about a year ago and racked up about K in credit card and medical bills. My credit score is probably not that great anymore. My boyfriend does not make enough money to pay the credit cards any longer. We were going to start next month and NOT pay them at all. We were paying the minimums before but need the money to eat and feed the kids now. We are thinking about filing bankruptcy but not sure if it’s the way to go. Here are my questions:
1) Do you think BK is the way to go?
2) Will the stores come and take my belongings if I file for BK (such as the television)?
3) Is it better to file for BK after filing for tax return? (So they don’t take the refund)
4) Will it be a problem trying to find a job in the accounting/finance field if I file for BK? (As some companies may do credit checks.)
5) Do you think I should talk to the credit card companies before I go filing for BK? I doubt they would really help me though.
Not even sure if I’m doing debt settlement. Just researching. Some say, your credit goes back up after you pay off the debt settlement amount in an average of 2-3 years. While on some articles I’ve read, it remains on your credit file for up to 10 years? What are the implications on your credit?
How much do these agencies normally charge? Just afraid with scams.
I have 6 credit cards and all but one have been charged off. I also have a couple things in collections and some medical bills.
I was told that charge-off’s stay on your credit for 7 years (even if you pay them off) and bankruptcy stays on your for 7-10 years.
I don’t make that much and I’m sure it would take me over 3 years to actually pay them all off.
So I was thinking about filing bankruptcy?
Would it be better to pay off the debt or file bankruptcy?
If i have a credit account that is only 2 or 3 months old, can I file bankruptcy on it? Is their a time line for accounts? My other credit accounts are 1-3 years old. This specific one is fairly new.
Anyone know?
also if im going to file bankruptcy within the next two months am I still allowed to use any of the credit
I have about 00 credit card debt on about 4 cards total. The debt has been in collections for 2 to 3 years. I have been working on repairing my credit but these 4 cards have done damage because I wrote them off. Should I contact these credit card companies and settle the debt and If I do will that have any effect on my credit score or will the score remin he same or will my score improve because I have settled the debt.
Everything that i’ve read says that you can get a home after 1 year in a ch 13 bankruptcy, 2 years after ch 7 bankruptcy, and 3 years after a foreclosure. I am about to file a chapter 13, and wonder how long would I have to wait before I could purchase a home. Does anyone know the actual rule and could you point me to the website or where you got your information?
Thank you!
We are about 00.00 in debt with alliance one and i think 0.00 in capitol one. We have a debt consolidation with Federated Financial. But I was thinking that maybe we should just settle with both of the debts ourselves because federated financial charges .00 a month and it will take us like 3 years to pay it off, if we go through them. What is the best choice?
About 3 years ago my life turned upside down, I had clinical depresion, lost my job and quit school. I did not care about the world, about six months ago I had major surgery and now I owe about ,000 in medical bills, I have a ,000 credit card judgment on my credit. I need a fresh start. How do I file bankruptcy? I don’t own anything, not home or car. What can I do? Please help me.
What are the best ways to improve our credit post bankruptcy without getting credit cards? Any advice would be appreciated. We are young (in our late 20's) and my wife lost her job about 3 years ago and our income dropped ,000 a year which caused us to file bankruptcy.
We just filed in October and from what I understand it should be discharged very soon, but I want to make sure that we stay on the right track and I have been trying to read as much as possible about it.