NEW DEBT LAWS- included in Bankruptcy Act of 2005 READ FIRST
Congress thought this will stop all those Yuppies who wake up in the morning and say...
"I'm just not going to pay my Capital One, Mortgage, and Hummer bills anymore! I'll just start new!"
The reports on the new bankruptcy law are embarrassing, and have crated NEW NIGHTMARES FOR WORKING FAMILIES!
Congress said that bankruptcy was loaded with deadbeats. So, the new law requires everyone -(no matter the reason for filing bankruptcy and no matter how low their incomes-)
-must take a credit counseling session before they can file for bankruptcy.
The idea was to pressure those who could repay their debts into debt management plans and away from bankruptcy.
But who is showing up for credit counseling? The Washington Post says that credit counselors report that 98% of the people who come to them before filing for bankruptcy are in terrible financial shape, "people with FAMILIES, and true hardships."
According to a credit counseling spokesman, "virtually none" qualified to pay anything. Many couldn't even afford the $20-75 counseling fee.
WHY?--- "FEAR OF BANKRUPTCY PUT THEM IN WORSE SHAPE!"
"debt settlement" "Consolidate" "Reduce Debt" "Lower your Monthly Payments!" "You Qualify!" "Lower Rate!"... etc...
We've all had a call from "We will help you lower your debt" companies. They are Scams to make YOU POORER!
We found out after signing up that the fee's are ENORMOUS and HIDDEN in VERY FINE Print! (the average cost is anywhere from $8,000-$10,000 donated to these companies, and most that start on these programs end up in BANKRUPTCY!)
"XXX" company, and "XXYX" (I'll call them "NAS") both swore
-"We're The Best- part of the Better Business Bureau! We Reduce 25-80% of your credit card debt!"
..i checked the BBB.com, they both looked Good, but had only been around since 2006...
so I signed up for the free consults... XXX wanted about $7,000 to clear our debt up, but saving us $12,000!
...so we can ENJOY the FREEDOM of Owning a HOME SOMEDAY!
...but it may take 4-5 years of living on Top Ramen, and working every hour we could...
(BUT if we fall behind, we would have to declare bankruptcy anyways... and they would keep the $X,000's in fees!
(California residents in ONE YEAR were charge 3 BILLION in Fees from just ONE of these companies-)
a local "Finders Fee" Company called (removed by me before posting) took our phone call, and did a consult...
the phone call, consult, and packet i received said the $1750 Fee was ALL THEY CHARGED... NOT!
then they passed it to "NAS"
-They take all our accounts and try to get the CC Companies to agree to settle, and they're "the best at this!"...
HOW- the tell us "DON'T PAY ANYONE BUT Yourself!!"
-Sounds GREAT!- We thought...
i guess a "Savings account would be opened in our name", for our debts. BUT, after receiving our packet... "NAS" wanted to charge us 33% of what we saved (around $5000... so i called to question this..."but don't worry! That's include in your monthly payments to the BANK!" i canceled my packet immediately!)
PLUS we found out later, A "Bank Fee's of $49/mo. for term of program" lets see... $50x46 months = $2,300 in BANK fee's alone! (But they don't use traditional banks.. you can't touch that money- its the company's! -and they are NOT FDIC insured, and have NO BRANCH offices...)
it seems these companies are set up by lawyers who know how to prey on the poorest people -and most in need! and shuffle the money around while you get sued by your delinquent accounts! -NICE of them to HELP! ...isn't it?
OK, i Watch the financial markets all the time, and have been for 10+ years! So here we are- Working With FAMILIES... Medical Bills, Gas prices, Food Prices, etc... Everything is getting more expensive, or going up!...
EXCEPT our INCOMES, SAVINGS, HOME VALUES, and The DOLLAR.. meaning Currency Rates!
------MORE BAD NEWS for Hard Times! -
--i'm not a lawyer... i just play one on the internet!---- so Look into this stuff for yourselves and with a lawyer before planning on doing ANYTHING major with your finances!-----
401K trap! -Take out a Big Fat Loan, and Pay as much Down as we can!
Since most people like us wanted to"Clear Up their Credit Cards, Catch up on Mortgages, Pay off Dr Bills, Etc." they have dipped into or neglected their 401K's or retirement accounts... only to have "Charged" gas, grocery's, etc. again and eventually "Maxing" out the debt again...
IF They PAY OFF certain Bills, then are stuck with Less Savings...
WOOPS! ..shhhhh..... (bankruptcy filing protects up to a million in any retirement account! And Creditors CANT TOUCH IT!- SO NEITHER SHOULD YOU, or you are Robbing Your FUTURE to Pay some loans off!)
---------------------------------------------------
HELOC- Home Equity Loans!
Get ready to hear This Crap coming soon to a TV near You!- "Congress Demands Mortgage Law Reform Act 2008" (Just like Bankruptcy Reform Act of 2005)
Since MOST STILL QUALIFY for BANKRUPTCY -their homes should be protected!
BUT getting a 2nd loan on their home was the ONLY answer before Bankruptcy! (or so they were told by the salesperson!)
Now in most states You CAN file for protection from the original lien, SAVING YOUR HOUSE! -unless you're "HELOC-KED"
new laws- YOU CANNOT Discharge any HOME Equity lines of credit, HELOC's- etc...
YOU WILL HAVE TO RESTRUCTURE AND PAY THEM OFF EVENTUALLY- Bankruptcy is different for each individual case, but most are ending up like this...
(That's Bankruptcy Reform Act! It seems to be helping a LOT- a lot of lawyers making billions!)
FORECLOSURE NOTICE! --BUT WAIT, WE FILED FOR PROTECTION!!!!
- Moneys Gone to debt "helper" companies -401K's gone! ...Bankrupt -BUT You STILL owe! The bank forces people to move, and take back the home, then STILL PAY!
for example, (this is happening EVERY WHERE IN THE USA! just search your own backyards- you'll see!)
-LAST YEAR -FEB '07- the banks took back 1,100 homes in "X"county Mn...
-THIS YEAR -Feb '08- the banks took back 1,700 homes in "X" county Mn...
This years average is UP 60% from last years! (Some places like CA are up over 150%!) But that's not the worst part...
out of the 1100 home they took to auction last year- only 54 didn't sell, and went back to the bank!
this year, the 1700 homes they took to auction- 657 didn't sell and went back to banks! an increase of how many percent? (HUNDREDS!)
We've seen many reports on the news this winter about "FROZEN CASTLES" -homes that are UNOCCUPIED, that the banks OWN and CANT GET RID OF!
...the pipes freeze and the water runs out the windows and doors- destroying the house- some are "$600,000 MANSIONS that they JUST CANT SELL ANYMORE!"
the economy has turned itself on itself... Credit Cards to pay bills, bills to raise families, homes to pay off credit cars, etc... Lawyers turning on Lawyers!
This is a debt nightmare that more Americans need to wake-up from.. i sure did... an since i love you all i thought I'd share...
after looking into our options, and getting on budget, i'm getting a lawyer and have a goal of being COMPLETELY debt free in 3 years!
i suggest you GET A GREAT LAWYER and do the same if you are in the same boat (1 of 7 families file bankruptcy before their kids are out of school, but that number is sure to rise given the current state of this economy... "Where are you Jesus?" )
(you have my permission and blessing to copy and email or fwd this to whomever you want- i suggest EVERYONE! and remember... i'm not a lawyer- just a dad with debt and some knowledge after searching this stuff for weeks!)
Godspeed, Good Luck, And God Bless!
mariacide.
i know it's a lot, and sure- my figures may be off... but oh well, PLEASE DON'T DELETE THIS!
i hope to help at least 1 person with this post- it would make me feel better about being a debt suffocated fool for all these years! :oops:
debt
[font=Arial][/font][size=3][/size][color=Red][/color][color=Red][/color]You have MAJORLY helped me with some 'decision making', with this post!! How informative! :P Seems like alot of Settlement Companies want to charge you an 'arm and a leg' to 'help you out'. To answer your question..you HAVE helped someone..ME!! Thanks. :roll:
Debt Settlement
Sometimes you have to choose debt settlement if you want it all to end. I could have filed bankruptcy 13 and taken 5 years at $2500 a month to pay off my debts; however, my income is not consistent I would never have survived the bankruptcy 13; many people who file do not make it and don't get a discharge. So I'm settling my own debt - a very high stress thing to do and I borrowed from my 401k plan - a choice I had to make after consulting with a BK attorney.
Whew... at least i helped 1 person... i can die a happy man! :l
Whew... at least i helped 1 person... i can die a happy man! :lol:
But really, thank this forum for being here! :wink:
...it's where i started after the shock of having "$3X,xxx.00 in credit card debt!" :shock:
but it took a few weeks, and a lot more than this forum-
if you read my first few post, you'll notice, i had my head in the sand like many others...
i didn't do our bills- the "secretary" of the family did them, and i stood by helplessly until now!
as i did a budget, i saw how much it really takes to get a family of 5 -FED, Clothed, to the Dr.s, Etc...
it all added up to 12 years of interest at 20% for the few things we have, (some funiture, some dvds, but the most was food and supplies- necessity's! with NO MAJOR ASSETS)
...we eventually used credit cards to pay off credit cards, then loans to pay off more credit cards, until our income surpassed the (NEGATIVE) -$1500 mark... thats when i was called in...
Bankruptcy cost= $299 to file for us together...
in 2-3 years we can SAVE those "Payments" we would have been making to the "DEBT FUND" and have $15,000 save up for OURSELVES...
sounds selfish doesn't it... Well in the Bible it reads- Forgive your brothers debts every 7 years... and that's why our forefathers GAVE us this RIGHT in the Constitution!
They knew everyone could be ENSLAVED into debt- its the GREEDY that ruin it for the rest!
i feel i've paid the CC companies for 12 years at 20% interest = we could have PAID for a NICE home by now JUST in THE INTEREST- if we paid for everything with CASH!!
-these banks get paid so much... they are taking over the "70's" cigarette ad spots- Nascar, etc..
so much now that all i see at Sport EVENTS like Racing, and Baseball is... "CAPITAL ONE CARD" ad's-
Whats in YOUR wallet? XXX-BANK Ads! "Get that LOAN NOW!"
...in the past 12 years of trying to "BUILD our CREDIT SCORES!" to get the house, nothing has worked. EXCEPT US!
(2 jobs for her, My night job that makes MORE, and i stay at home all day and raise them!- we don't do daycare, can't afford it!)
The cost of trying to keep our "Good Credit" and repaying all that debt totaled "$XXX,xxx.00"
so do i REALLY want to Put more into the DEBT MONSTER we've created...
NO, i have Sinned, i admit that, and the courts can forgive me! now give me my life back, thanks!
i have kids that need a future... not a good credit score! Live and Learn!
From now on, its DEBT FREEDOM or BUST!
God Bless!
:wink:
Quote:and I borrowed from my 401k plan - a choice I had to make
Quote:
and I borrowed from my 401k plan - a choice I had to make after consulting with a BK attorney. |
Lawyers are wrong some times -
in 1996 i had an attorney screw up my workmans comp case- instead of my $60,000 settlement, he missed some deadlines...
after passing me off to another attorney, we got a few low-ball offers from the ins company... waited another year... we settled for 1/5 of what a "Normal Case" would have... my back/medical wasn't even covered, my truck was repossessed (after they rebuilt it)
so i had to declare bankruptcy in 1997- that's why i wasn't "allowed to do the budget" for the last decade plus!
ALL LAWYERS ARE NOT THE SAME, and some are not even COMPETENT on the laws they think they know! i'm living proof!