Please Scroll Down to See Forums Below OK, I am currently in a consolidation program and still having a hard time paying my creditors and being able to make my other payments and have $ for living. I have not made my payment in almost 2 months now. What can happen here, besides my credit getting messed up even more, can the creditors do anything to me? Is there a possibility they will come to me with a reduced intrest rate and monthly payment even after I have been in consolidation already? I would file bankruptcy but I have 2 loans in which my Dad is a co-signer and I do not want him to get f'd on this. What are my options?
Stop paying Creditors
- Thread starter arnoldk
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HG Pennypacker
New member
You may have a good chance at them working out a payment plan with you at a reduced interest rate, right now. Defaults are beginning to increase and the company may just look to get what they can from you.
Your other option is a BK. Which actually is looked on more favorably down the road than having paid creditors off but you have tons of late payments (which each one stays on for 7-10 years.) The bk wipes all of that history out, so say 3 years from now your credit score is still low, but you won't have a hard time buying a house, and some other basic items. (except for the house, you will get ripped on interest rate, but not as bad as having months upon months of late payments)
Plus, they can sue you, take up to33% (I believe) of your income by garnishing your wages, (which really looks bad and can keep you from getting employeed)
Harrass you till you kill yourself, etc.
Plus, they can sue you, take up to33% (I believe) of your income by garnishing your wages, (which really looks bad and can keep you from getting employeed)
Harrass you till you kill yourself, etc.
Y_lifter
New member
john937
New member
If you really can't make those payments then:
1. Open an account with your credit union and start having some portion of your wages deposited to savings.
2. They will open a Visa account that is tied to the amount in the savings account. If you have 1500 savings, you'll get 1300 Visa line of credit.
3. Get an unlisted phone number.
4. At that point default on all your UNSECURED bills.
This does not include judgements, student loans, or anything tied to a security: car,boat,house etc.
Your credit is now fucked for 7 years, but you will have a lot more spending cash, so learn to live on what you make and put a lot into savings.
7 years down the line you'll have good credit again because you have that 7 year old visa I mentioned in step 2.
This advice depends on you're not living in a state that garnishes wages. In some states if they take you to court they can get your wages attached, but there's not that many of those states.
1. Open an account with your credit union and start having some portion of your wages deposited to savings.
2. They will open a Visa account that is tied to the amount in the savings account. If you have 1500 savings, you'll get 1300 Visa line of credit.
3. Get an unlisted phone number.
4. At that point default on all your UNSECURED bills.
This does not include judgements, student loans, or anything tied to a security: car,boat,house etc.
Your credit is now fucked for 7 years, but you will have a lot more spending cash, so learn to live on what you make and put a lot into savings.
7 years down the line you'll have good credit again because you have that 7 year old visa I mentioned in step 2.
This advice depends on you're not living in a state that garnishes wages. In some states if they take you to court they can get your wages attached, but there's not that many of those states.
K
kronk
Guest
This is all good advice. Especially what Wodin said.
All fifty states allow garnishment of wages up to the Federal maximum allowed percentage. School loans never go away and as long as creditor is not satisfied, you will get a bad report from now until hell freezes over.
If you really can't make the payments then you file a chapter 7. This is inifinitely better than defaulting on the loans. Especially when a company does a records check for employment. In the end you took out the loans and it is up to you to work legally within the laws to remedy these situations.
I would not purposefully default on a loan that is very bad!
If you really can't make the payments then you file a chapter 7. This is inifinitely better than defaulting on the loans. Especially when a company does a records check for employment. In the end you took out the loans and it is up to you to work legally within the laws to remedy these situations.
I would not purposefully default on a loan that is very bad!
Question
My only thing holding me back from filing chapter 7 is that I have my dad co-signed on 2 loans for me. What would happen in this case? Would he be liable to pay the loan b/c he is co-signed? Is there anyway for me to keep these two loans active and still pay them as normal if I file chapter 7? Anyone with some advice here? Thanks....
My only thing holding me back from filing chapter 7 is that I have my dad co-signed on 2 loans for me. What would happen in this case? Would he be liable to pay the loan b/c he is co-signed? Is there anyway for me to keep these two loans active and still pay them as normal if I file chapter 7? Anyone with some advice here? Thanks....
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