We are considering chapter 13 as we are deep in debt with interest rates so high we can barely afford the minimum payments. We are not behind on our mortgage. Do we have to include our 1st and 2nd mortgage in the reorganization? Or do we keep those separate? Is it all debt? Or just unsecured debt?
I have been a single mom for 9 years. I was using several credit cards for things we needed and actually was doing well making payments until the credit card companies began to increase their interest rates and amounts owed per month. My credit score was perfect. I never missed a payment. I began to be unable to pay what I owed due to increased monthly demands from the credit card companies. I spoke to a representative from Armored Debt Center who convinced me that they would settle my debts for amounts less than I owed, therefore giving me a chance to get out of credit card debt altogether and I agreed to pay 8 per month for them to do so. It seemed like the right thing to do for me and my family’s future. I have put a lot of effort into making that payment every month starting last October. Armored Debt Center told me not to answer calls from my creditors and sent me a script to basically get off the phone without telling them anything. I followed this advice. They tell you to tell the debt collectors that they are only to communicate with you in writing and then you are to fax everything to Armored Debt Center. When the first credit card company took me to court, I followed Armored Debt Center’s instructions to go to a particular website and retrieve documents to fill out. It was a website that anybody could have googled, not affiliated with Armored Debt Center. It was difficult to figure out what I needed to put on the documents that were to be sent to the court. At one point, I called Armored Debt Center and was told that they “cannot give legal advice” so I was left to figure things out on my own. I was told by Armored Debt Center not to worry, that this was part of the process. I filed everything the website suggested with the court. Prior to my court date, I called Armored Debt Center and was told nothing more than, “Don’t sign anything”. Judgement was awarded for the full amount, plus interest, plus court costs to the credit card company. I continued to keep in contact with Armored Debt Center and fax them everything that was sent to me. It would take up to several weeks for them to call me just to state that they received my fax. They have a well-rehearsed spiel that they give on a continued basis stating that “This is a process. Don’t worry. Keep faxing us documents sent to you. Don‘t give any information to debt collectors when they call you. Use your script. No further action is needed at this time.” They led me to believe that they would be settling with the debt collector “after my next payment”. This went on for several months with no settlement. Armored Debt Center did not settle my 44 debt with the very first credit card company that filed, after a full 12 months of payments at 8 per month. I had given them 96 of hard-earned money and they had not settled anything. Every time I would call, I would get the same run-around, rehearsed speech and be coerced into continuing the program. I would explain that other credit card companies were getting ready to take me to court. Now, the court has allowed the debt collector to garnish my wages by 25%. Because Armored Debt Center failed to settle with the first credit card company to take me to court and my wages are being garnished, I no longer have hopes of being able to get myself out of debt because I don’t have any extra money to give to a debt settlement company, or to save on my own, for such a purpose. At this time, my 3 other credit card companies have indeed initiated taking me to court and I have summons for those now.
I spoke to a representative at Armored Debt Center, Mark, about what had happened and that their debt settlement program had failed miserably. I called Armor Debt Center to ask for my money back for a program that had failed. He eventually said that he would give me back my “reserves” which was 38 but they would not refund their “service” fees which were 30. When asked what services they had provided for 30, Mark stated “education”.. Education on a program that did not work, that did not do me any good whatsoever, and in fact got my wages garnished and ruined my credit. My “education” was a script on how to get off the phone with debt collectors and what website to go to to fill out paperwork to send to court that anybody could have accessed. Upon further pleading with Mark, he stated that they would refund 3 to 4 payments. By the end of the conversation, however, he was saying 2 to 3 payments. Therefore, Armored Debt Center was intending to keep 98. I received an e-mail today asking me to sign a form stating that I will accept 32 back from them, which is only 2 payments and indeed would award them 98 for doing nothing that benefited me. I have been so stressed out, I’ve nearly made myself sick. I have heard that there has been a law passed to safeguard people from these debt relief scams. I have not yet had a chance to find out the specifics.
okay I am married and we are currently overly in debt. My husband is working a great job while I on the other hand lost my job due to the economic ways we are in. we are about 18,000 in credit card debit that we stop paying in general. we have a 38,000 car loan that we have been paying and have had it for a year now. than of course we have all the other basic bills FPL, Cable, Car insurance , rent which is 1,000 a month. since one side has been bring in money we have only be able to pay for the basics and car payment, car insurance, and rent.
There is really anything else we can do.. there is no managing money because all of the money goes directly to bills.. there is nothing we can sell to gain money for all our debt.. it just seems like its getting worse and worse and we thought about bankruptcy. Yes, I agree it’s a horrible thing and it stays on your credit for 10 years YES THAT IS RIDICULOUS bad.. but really what is there else to do.. the interest rates on the credit cards are so high that because of 1 month not paying the minimum jumped up 700.00 so i don’t even want to check what it is now!! We don’t have much options besides that.
If we decide to do it how will it effect his current job? Does his current job have to know we filed bankruptcy?
How would it effect our car loan?
How would it effect us paying RENT to our landlords..
Thanks a lot of the help in advanced
=/ ohhhhhh
Thank you for all that is giving me their opinions.. and to add on… yes a 38,000 car loan is ridiculous. But we all do things in life that isn’t perfect. So, it doesnt matter our age not everyone makes the correct decisions regardless it doesn’t change the situation that we are in. so call it stupid or whatever you like… All i am trying to DO is get opinions to better my situation and to answer me questions I have.
Thank you for all who has answered all have helped in different ways.
Greatly appreciated
I have done everything I can to reduce my spending, and my interest rates (on unsecured debt), yet there are still so many demands on my income that I am still unable to meet my monthly obligations. (My VA Compensation was just "reduced" making my problems even worse). Due to the nature of my current "graveyard employment", I have been experiencing a great deal of trouble finding a second job.
Must Bankruptcy be my only solution? I entered into a Debt Management Program (to have interest reduced), 4 months ago. Until then, I had not even had a "late payment" in over 8 years (no longer the case thanks to the DMP).
I was forced to file Bankruptcy in 1999 (so it is about to be removed from my credit file), due to my divorce and excessive student loan payments.
Now I am about to "start all over again" due to my inability to obtain reasonable interest rates on my debts.
Can anyone suggest alternatives to Bankruptcy?
Hi All,
I have about 35,000 dollars in credit card debt and i am current on each one. I have a credit score of 780. My interest rates on 15, 000 is 4.9%. The one i am concerned about is the 20,000 at 9.9% with BoA…..I can make the payment with struggling at 316 a month i called and see what they could do for me lower interest or not they said no then asked to settle the debt they said they would settle for 12,000 without looking at the credit report pay that in four months which i believe i can do….Should i do it or just continue to pay all my creditors the minimum payment which i am doing now ?????? If i debt settle with BoA how bad does my credit score from 780 go down???
When i get bonus at work i just give that to my credit card companies i have stop using credit cards and hope to pay them off…..
Thanks everyone …..Just don’t know if i should mess up my credit score I good go from 35000 to 20,000 in a year with the settlement and probably pay everything off in 2 years with the boa settlement if not probably going to take 5 or 6 years……
Thanks everyone …..Just don’t know if i should mess up my credit score I could go from 35000 to 20,000 in a year with the settlement and probably pay everything off in 2 years with the boa settlement if not probably going to take 5 or 6 years……
In about 4 to 5 years i want to get another house….i currently own a house that i am current with all mortgage payments…The house would be the only big next purchase….
In about 4 to 5 years i want to get another house….i currently own a house that i am current with all mortgage payments…The house would be the only big next purchase….
I have ,764.00 in credit card debt with interest rates in the 20%-30% range. I am looking into either a debt management program or a debt settlement program. For the debt management program they estimate that I will pay ,410 total including their fees and be debt free in 3 years 9 months (April 2013). For the debt settle program they estimate that I will pay ,058 total including their fees and be debt free in 2-3 years (July 2011-July 2012) depending on how much I decide I can afford per month. I see that the settlement program is a lot cheaper in the long run (,352), does not take as long to complete (24-36 months instead of 45) and is at least 0 cheaper a month if I choose the 2 year program and 0 cheaper if I choose the 3 year program. My current credit score is about 645 and I don’t want to destroy it, but I can not keep paying the minimum payments for the rest of my life and never be debt free. Has anyone used either of these programs? What was the difference in your credit score when you finished the program? Did you have any problems? The name of the company is Coastal Credit Solutions out of San Diego, CA. Any help would be highly appreciated. Thanks!
I have about K credit card debt, have been making monthly payments till now life was smooth. But at the moment I am not able to make them and was thinking of settling the debt with them. Let’s say I settle that for K (that is too high of an expectation I guess, or file bankruptcy). How much would I end up paying in taxes when they send me the 1099?
Forgot to add that:
1. I am ready to pay the K upfront (or at the max 3 months)
2. I went to the NFCC and the interest rates in the "Debt Management Plan" that they were offering were higher on most and lower on some accounts. In the DMP, I end up me paying more monthly minimums than what I am paying at the moment!
NFCC – The National Foundation for Credit Counseling, the one Clark Howard Suggested on his CNN show.
1. Even if the debt is ’settled’ and is on there for seven years, can I start rebuilding my credit, after ’settling’ the current one for say k (assuming I am lucky) in like 3 months, by getting a secured credit card? Or only places where I should worry about "Credit history/report" is (1) Home Loan (2) Car Loan (3) Credit card (4)Store Card….am I missing anything else here?
2. And what about the 1099?
I have had two financial advisers tell me to declare bankruptcy when I graduate from college, or sooner to eliminate my credit card and school loan debt, and one telling me that I should probably get more financial aid (all from different firms)…. The interest rates on private loans for schools are ridiculous (I am going through Sallie Mae), and I am already freaking out about how much I am going to have to pay back…
I don’t really have any family, and I am currently in my Junior year in college. I have been working full time, and paying my school on my credit cards, apartment etc etc.. (I have 3 with a total of 00 credit line, and they are usually maxed out when new semesters start). I get a little bit of money from the federal government (FAFSA) for school, but it obviously is not enough… I also have a bit of private loans from my grand mother who is co-signing for them.
So should I declare? When if I should?
I am not trying to skeeze my way out of it, and I am fine with paying it all back with the career I get when I graduate, but I am really scared about the whole thing (private loans), and I would like to know if there is an ALTERNATIVE route without having to sell my first born child. The gov. and my full time job do not provide enough income for school and such, and I can only work so much taking an average of 18 credit hours a semester.
If I declare bankruptcy, will it affect my grandmother since she is co-signing?
Please help me out. I am open to all constructive help and legitimate ideas that don’t involve anything illegal.
I am trying to decide if i should just try to pay off my cards in full, or settle for a lower amount. But I am trying to get my score higher, so settling for a lower amount would show up at "settled" on my credit report and have a negative impact on my score.
So is it possible to settle your debt with the agreement of the credit card companie reporting that the debt was "paid in full" instead of "settlement" ???
"People with your thinking are what is driving this country into the ground. Oh I have too much debt, let me just walk away or try and "settle" the debt for half of what I borrowed.
Pay the debts off and keep your credit score and your character in tact. People like me are tired of paying higher prices and interest rates for idiots like you.
I know the truth hurts, but you need to hear it. I just hope it sinks in."
Yes I am the idiot….because I lost both my parents while I was in college and was left to fend for myself. I paid them what I could and my balances never went down. Credit card companies are criminals i"m my opinion and "driving" this country down, they feed off the poor. You Randy are the fool, read up and do your homework before calling someone else an idiot. Me not paying my credit card debts has nothing to do with prices being higher and you’re interest rates you clown. Greedy uneducated people like you give American’s a bad name, I hope that sinks in.
I currently have around ,000 in debt, ,000 of which is from credit cards, ,000 from an auto loan (The car was repo-ed and this is the remainder balance I owe after auction). I also have ,000 in student loans. I have been unable to pay on my credit cards for the past year and a half, so the interest rates are through the roof and my credit score is extremely horrible. Would it be better for me to file for bankruptcy at this point? or try to negotiate a settlement payment for my debts and try to rebuild my credit?
I’m not behind, I would like to settle because of the new interest rates my monthly payments are not reducing the principle.
I filled bankruptcy last week with plans to reaffirm the auto loan and keep the car. Mostly because my dad is the co-signer.
Today I tried to make a payment only to find the loan has been sold to some other company, and now I fear they will change the interest rates and add fees. Is this what will happen? What would happen to the co-signer if I decide to return the car and discharge the loan?
00/mo student loan payments, WHAT DO I DO…23yr old fresh out of college?
Anyone have any good suggestions on what to do with a 00 a mo. student loan payment? I cant lower it at all, The only thing I can do is pay interest at a low of 0 a month. My loans are through Sallie Mae. I haven’t payed in only 1 month and they are already trying to report me to a collection agency. Any suggestions from people in my boat? Mind you, im 23, earned my bachelors (Graphic Design) in 3 years and im 5,000 dollars in total debt. I lost my full time job and now work 4 part time jobs just to pay my rent/bills/food, I cant afford these payments anymore or im going to become homeless. Iv been making these payments for about a year now.. What more can I do?
The college system seems so flawed, we go to school to be taught to work to pay off your student loans the rest of your life. I know there are so many people in my shoes right now that are just skipping out on their payments, WHICH I DON’T WANT TO DO.
When going to school ( The Art Institute ) they gave me only two options for loans, Sallie Mae and Federal. It seemed the longer I was in school the higher the interest rates went. They told the students that the repayment plans are easy to work with and not to worry. It was a little over 00 a class which I took 5 every Quarter and 00 for dorm living. The classes when all year around for four quarters so around ,000 a year plus interest. I saw my debt racking up while I was going there but the fact the school made it seem it didnt matter how much you took out the repayment plans could work with you.
I dont know what happened but Sallie Mae my loan company went bankrupt half way through my schooling and from that I think they might have changed what they offer for repayment. I would do anything for lower repayments.
I’M NOT LOOKING TO BE RIPPED APART IN HERE ON WHY A CHOSE SUCH EXPENSIVE SCHOOL… ( I went to the Art Institute for god sakes ) at the time it seemed no mater what the price there were repayment options to work with your income… which as of recently to find out they do not. I JUST WANT TO SEE IF ANYONE HAS ADVICE ON WHAT I COULD DO TO LOWER MY PAYMENTS.
Currently I have about ,500 worth of debt that include credit cards, a personal loan, and doctor bills. I recently became unemployed and I haven’t been able to make payments on any of my debts.
I’m fairly young and of course my interest rates are high, ranging from 16%-24%. I use to not only pay my bills on time, I paid them all early. I like paying my bills. I don’t want to file bankruptcy but in this situation I don’t know what to do. I expect to starting working within 4 weeks.
If I try to start making payments, it will take several months to get caught up. I live with my family and I’m basically head of the household. I take care of my family of 5, and that’s why I’m in debt.
I don’t want to go to one of those companies that you make a monthly payment to and they make payments to your creditors. I could do that myself, and I would still be in the same situation.
Is filing for bankruptcy the right thing to do? Will I be able to, considering the new laws?
We are refinancing our house to pay off some credit card debt. I have heard that the debt management companies will negotiate on your behalf and either lower the interest rates or lower the amount they will accept to pay off the debt. I have also heard you can do that yourself.
Anyone have any experience with this tactic? I have also heard that trying to settle for a percentage of your balance will wreak havoc on your credit rating. Is it worth it to save a couple of thousand dollars?
Do you try and reach an agreement with the first CSR you talk with, or does it only count if you negotiate with a manager or other official? Should you get the agreement in writing, as well as any effects on the credit rating? What is an appopriate percentage to ask for (50%? 60%?), or does it depend on factors like amount owed, past payment practices, etc.? Does it help to threaten you might be filing for bankruptcy if they do not settle?
Interested in knowing your opinions. I’m sure you’ve all known people who are drowning in debt, and have been paying the credit card companies for years and years and still have been unable to pay off the balances.
Then the credit companies have increased the interest rates to 30% not because they were’nt paying, but because they had high revolving balances. Or, credit lines have been frozen because of a late pay on another card (universal default).
Do you think that debt settlement is wrong, because people should pay back what they own?
My mom is in risk of losing her home due to credit cards raising interest rates and their not being able to keep up with payments. Her wages are going to be garnished and is worried about not being able to make mortgage payments. She refinanced once. Can she file bankruptcy if she refinanced?