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....
FreakMonster
New member
Re: Question
Yes, it will effect your dad if you filed for a bankruptcy because it would ruin his credit and his credit will show a bankruptcy. I would only take the bankruptcy route if you are 10k or more in debt. If you want to go the bankruptcy route see if you can get your dad off the loans and then file for bankruptcy, or you can do a selective bankruptcy. You can file for bankruptcy but keep your loans that your dad co-signed and the rest of your debt will be cleared by the bankruptcy. After the bankruptcy just keep making payments to those loans and you'll have your credit back up in 2 yrs. Anything else?
arnoldk said:
Yes, it will effect your dad if you filed for a bankruptcy because it would ruin his credit and his credit will show a bankruptcy. I would only take the bankruptcy route if you are 10k or more in debt. If you want to go the bankruptcy route see if you can get your dad off the loans and then file for bankruptcy, or you can do a selective bankruptcy. You can file for bankruptcy but keep your loans that your dad co-signed and the rest of your debt will be cleared by the bankruptcy. After the bankruptcy just keep making payments to those loans and you'll have your credit back up in 2 yrs. Anything else?
Re: Re: Question
I think you answered it in your last sentence but just to confirm: There is such a thing as selective bankruptcy where I can continue to pay the loans my dad had cosigned on WITHOUT that negatively effecting my Dad's credit in ANY way while all my CC Debt(which is about 9.5K) will be dealt with? Basically I dont even want him to know this is happening. I can make the payments for those loans easy as they total like $175 a month. Thanks.
FreakMonster said:
I think you answered it in your last sentence but just to confirm: There is such a thing as selective bankruptcy where I can continue to pay the loans my dad had cosigned on WITHOUT that negatively effecting my Dad's credit in ANY way while all my CC Debt(which is about 9.5K) will be dealt with? Basically I dont even want him to know this is happening. I can make the payments for those loans easy as they total like $175 a month. Thanks.
FreakMonster
New member
Re: Re: Re: Question
Yes, when you go file for your bankruptcy make sure you tell them that you want to keep those loans. The other debt will be erased. Filing for Chapter 7 costs $200. An attorney will cost you about $800 and will aid you in the bankruptcy process.
arnoldk said:
Yes, when you go file for your bankruptcy make sure you tell them that you want to keep those loans. The other debt will be erased. Filing for Chapter 7 costs $200. An attorney will cost you about $800 and will aid you in the bankruptcy process.
Last edited:
Re: Re: Re: Re: Question
Frk Monster,
Hey thanks for all the help! I made a appointment for a consultation later this evening. One quick question for ya, maybe you know. How hard is it to get approved for bankruptcy? I have about 9.5K in Debt and I gross about 33K a year. With my monthly payments, rent ect. I am about out of $ to live on with per month. Am I a good candidate to be approved for this, in your opinion? Thanks.
FreakMonster said:
Frk Monster,
Hey thanks for all the help! I made a appointment for a consultation later this evening. One quick question for ya, maybe you know. How hard is it to get approved for bankruptcy? I have about 9.5K in Debt and I gross about 33K a year. With my monthly payments, rent ect. I am about out of $ to live on with per month. Am I a good candidate to be approved for this, in your opinion? Thanks.
A
ajtomasi
Guest
supernav said:
wow
FreakMonster
New member
supernav said:
Isn't that illegal? LOL
FreakMonster
New member
Re: Re: Re: Re: Re: Question
Bankruptcy is very complex. Your attorney will be able to help you with all those kinds of questions.
You should be fine as long as you haven't:
Incurred debt on the basis of fraud, such as lying on a credit application.
Had credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing.
Had loans or cash advances of $1,150 or more taken within 60 days of filing.
Had debts from embezzlement, larceny or breach of trust.
Had debts you owe under a divorce decree or settlement.
arnoldk said:
Bankruptcy is very complex. Your attorney will be able to help you with all those kinds of questions.
You should be fine as long as you haven't:
Incurred debt on the basis of fraud, such as lying on a credit application.
Had credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing.
Had loans or cash advances of $1,150 or more taken within 60 days of filing.
Had debts from embezzlement, larceny or breach of trust.
Had debts you owe under a divorce decree or settlement.
Toozee
New member
Yea, here in Texas it's just your credit that gets screwed.
I used to collect in house years ago and I'll tell you this.....they will gladly take payment arrangements. They lose so much money if they sell it to a outside professional collection agency. Just show some kind of willingness to pay and they'll almost always help you out.
I used to collect in house years ago and I'll tell you this.....they will gladly take payment arrangements. They lose so much money if they sell it to a outside professional collection agency. Just show some kind of willingness to pay and they'll almost always help you out.
Don't get to excited over chapter 7. The Bush adminstration made it increasingly difficult to file chapter 7 and most bankruptcies are now going the route of chapter 13. In chapter 13 you will still have to pay off all your debt. However it will cut off all interest charges and your bills will be combined into one payment with a repayment process of 3-5 years. If you default, the creditors can still come after you I believe, just like your current case. I am not sure, but I have heard if you get layed of during the repayment process you dont have to make your payment, but don't take my word on that.
Heres something that will blow your mind: http://eliminatecreditcarddebt.cc/help/index.shtml
According to this site, all credit card debt is illegal and you can have all your balances zeroed out on the basis it is illegal for credit card companies to charge interests on money that doesn't exist. I really don't care to explain this, just go to the site and check it out. I think ill write a separate post on this and see if anyone else here knows of this.
Also, beware of the internet bankruptcy programs. They can easily sell you the paperwork and sure you can go file. But the judge can throw your case in the trashcan and tell you to get out of his face also.
Heres something that will blow your mind: http://eliminatecreditcarddebt.cc/help/index.shtml
According to this site, all credit card debt is illegal and you can have all your balances zeroed out on the basis it is illegal for credit card companies to charge interests on money that doesn't exist. I really don't care to explain this, just go to the site and check it out. I think ill write a separate post on this and see if anyone else here knows of this.
Also, beware of the internet bankruptcy programs. They can easily sell you the paperwork and sure you can go file. But the judge can throw your case in the trashcan and tell you to get out of his face also.
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