What to do...
2 years ago, when I was 25, just out of school, I took out about 110K in Credit Cards to buy a used car business. This was in September of '07. To make a long story short, almost 2 years later I'm in the hole about 100k and have lost the business; 3 major credit cards making up 93K of it. I also have about 4 other smaller credit cards with balances of under 2k.
I don't have any assets other than a 4K car and just normal household items. I was current on all my payments ever until about 2 months ago when I stopped paying on the 3 major credit cards.
I'm doing about 3 or 4 entrepreneurial activities that bring me in about 3-6k a month depending on the month, which just pays the bills (I live in LA and I have a small family).
Should I even bother calling a debt recons company? Should I just file bk? In order for me to come current with any of these debts I'd need to have a reasonable expectation of receiving 10k+ every month for a few years, and I don't have any expectation of receiving 10K consecutively for any number of months.
My thought is that I should file a BK because even if I can get a 70% reduction I'd owe 30K which I don't have and don't expect to have anytime soon. Pros and Cons? Thanks for the help!
You can either register with a good debt settlement company and
You can either register with a good debt settlement company and pay off the debt within a period of 2 to 4 years after getting it settled for around 30 to 40% of the outstanding amount or go for bankruptcy. Since you earn around 6K per month, you will qualify for Ch 13, where you need to pay approx 2K per month for a period of 5 years to repay the debt.
yea i don't make 6K per month, i make 3-6k per month depending a
yea i don't make 6K per month, i make 3-6k per month depending and I live in LA so that just pays my bills. I don't think any judge would require 2K / month from me. I wouldn't be able to pay rent. Thanks for the heads up though.
I wasn't sure if the 30-40% would be required up front. I'm definitely willing to work something out if I can pay them over several years at a discounted rate. Where can I go find out who is a good Debt Settlement Company, I know we can't talk about who they are explicitly. But are there good review boards where they do talk about debt settlement companies?
To find out a good debt settlement company, you need to do an ex
To find out a good debt settlement company, you need to do an extensive research. A good company should have at least one of the following accreditations - BBB, TASC, IAPDA or USOBA. Moreover, you should also check the program fees and costs. If you want, you can also have a free consultation with our community experts.
Personally, I would suggest a consult with a bankruptcy attorney
Personally, I would suggest a consult with a bankruptcy attorney. I dont see how you will make it thru any debt settlement program without being sued.
I talked briefly with a family friend who is a lawyer about my s
I talked briefly with a family friend who is a lawyer about my situation. He made it sound like I didn't really need to be concerned about being sued because I have no assets they could go for. I have a used couch, a couple of Dell Computers, and a Volkswagen worth about 5k, that's basically all I have to my name.
My thoughts are that I should probably do as you're saying, SOAPLADY, and contact a bankruptcy attorney. It seems like I'd just be delaying the inevitable the longer I wait.
Even though "SC" mentioned that I could get my debts possilby set up to be paid off over 4 years most people in here are talking as if you need to have some money up front to negotiate. Hmm... I'll keep reading around for sure. Thanks for your input so far! Very helpful...
Your family friend who is dead wrong....they dont care if you do
Your family friend who is dead wrong....they dont care if you dont have assets now....a judgement depending on what state you are in is good for up to 20 years..things change over time.
Not to mention they can freeze the money in your bank account an
Not to mention they can freeze the money in your bank account and garnish your wages (depending on your state) -- so soaplady is exactly right --- they could get a judgement & regardless if you have property they can still take things from you & they last a LONG time. I would do as she suggested and contact a BK attorney.
