Credit Card Debt...

nick44

nick44

Bluelighter
Joined
Oct 8, 2001
Messages
714
Yesterday I received a letter in the mail stating that the company had turned over my debt ($1600) over to a legal representative. They have given me 30 days to pay this. If this were my only debt I would be very happy. However, I also have debt on two other credit cards (13,000 and 3,500). The debts on all of these are overlimit and delinquent. I am fearful that these companies will also take legal action.
I have not paid these companies in two months due to a lack of job. I am currently seeking one and imo should have a high income potential due to a physics undergraduate degree. At first after not being able to pay I had returned the phone calls from the company explaining my situation. After they began calling every day - sometimes more than once - and telling them that I would not be able to pay at this time, I simply gave up and did not answer the phone.
It is not feasible for me to borrow money from any source to pay off these debts. I also have close to 30,000 dollars in school loans that I will have to begin paying in November.
What is my best plan of action? I intend to try and call the legal office and explain my situation. Try to work something out where I can give them something in good faith, although the disclaimer that any info will be used to collect debts does not give me encouragement.
I have studied some consumer debt consolidation plans and reduced payment options, but am not sure whether these plans will require some knowledge that I am gainfully employed. I recognize that getting a job is the number one priority right now to becoming financially stable, but what would be the best plan of action now to relieve the stress of debt?
Also, would bankruptcy protection be anything I should look into? Would it be that more disastrous in terms of my credit vs. going through a credit counseling/consolidation program? I am single and currently have no attachments in life and the idea of having bad credit does not sound so bad. Are there other penalties for having bad credit that do not have to do with getting loans etc? Do employers look at these things? Could I be discriminated in any way due to bad credit?
Thanks in advance for any information/opinions that one might give..
 
Most credit card companies will work with the debt consolidation repayment programs. (In fact,they're the ones who fund them). If you have the means to make some sort of payments they're not a bad way to go.
Bad credit can keep you from renting an apartment or house. It can also keep you from getting some professional licenses.
Bankruptsy isn't as awful as it seems, and might be a viable solution for you. You are actually seen as somewhat of a better risk than someone with just bad credit because you can't file again for another 7 years.
Good luck
 
You should seriously consider bankruptcy.
Bush and Congress are working to change the law to make it more difficult to do, at least for consumers. I'm not 100% sure, but I don't think they've actually changed the law yet. You should think about bankruptcy before they do.
You'll be stuck with your student loans, but all consumer debt will be wiped off your record.
 
you could also call up the student loan people and try to have the loans pushed back a few months. they know that the economy is bad and may be more understanding.
 
^^^^^
I think the new bankruptcy rules have already gone into effect. From what I understand, you are required to pay off a certain portion of the debt you owe, assuming you are able. This makes it more difficult for people that do have some assets to get out of paying a portion of what they really can.
The debt management companies will only work with you if you have a stable income. You have to provide them with your monthly income, and all of your expenses, including minimum payments to cc, student loan payments, rent, food, gas, etc. If your expenses exceed your income, they will not enroll you in their program.
Bankruptcy seems like it might be the only real option you have left. But, be very careful with this as this will stay on your credit report for 7 years, but will ALWAYS be on your credit history.
Good luck!
[ 26 February 2003: Message edited by: Dr. J ]
 
Go here:CLICK THIS!!! There are some very knowledgeable people that can probably lead you in the right step. CHECK IT OUT, if you really want help!!
PEACE.
 
Thanks everyone for the advice. Especially jmendo - that link has certainly helped me gain a better picture of where I actually stand and what my rights are.
take care.
 
Originally posted by Dr. J:
I think the new bankruptcy rules have already gone into effect.
My impression was that the bill was killed last November, and would have to be re-introduced, but perhaps I'm incorrect.
Do you have a reference you can point us to?
Click to expand...
 
Mahan,
I don't have any specic sources to cite. I am just basing my assumptions from what I heard on the news and what I heard when I contacted a consumer credit counseling company.
So, if you know for sure it was killed last November, great. I tried a quick search and couldnt come up with anything and don't have time to hunt any deeper.
 
Originally posted by Dr. J:
Mahan,
I don't have any specic sources to cite. I am just basing my assumptions from what I heard on the news and what I heard when I contacted a consumer credit counseling company.
So, if you know for sure it was killed last November, great. I tried a quick search and couldnt come up with anything and don't have time to hunt any deeper.
Well I am sure it was killed in November because of a rider dealing with abortion protesters.
It is possible that it was re-introduced, but I've seen nothing about that, so I would assume it is NOT law.
Second, even if it were passed, there would be a six month period before it goes into effect, so the gentleman above would still have time, if he acted quickly.
nick44 - Seriously, look into bankruptcy!!
Click to expand...
 
im sure youre credit is shot by now so you should pretty much look into debt consolidation and then, bankruptcy. If you had posted earlier, it would have been a viable solution to refinance, like I did. I have about 13,000 of credit outstanding, which ive bumped off the last 3 years through 1 year credit checks that charge 3%, which is nothing. But you wont receive those offers in the mail if companies are pending on litigation. Good luck.
 
The bankrupticy reform bill has *NOT* been passed yet. Our ecomeny is shit to hell, people are getting laid off weekly and there is a war. Do you think that bill has any chance of passing right now????
However, after the war the bill will be passed.. bush will say something about "helping us rebuild american and ensure people don't take advanatge of us.. blah blah"
So, in short.. file chapter 7 now while there is still time left!
Jay
 
Thanks for all the advice guys. I have read A LOT on the subject since then. I am seriously considering bankruptcy, but it appears that I may have some time left. I have also noticed that some of my third party debt collectors have violated a number of laws under the FDPCA(correct me if I am wrong on the acronym). Now, I don't have the requisite paper trail, but I think I might be able to obtain some using the tricks I found on thissite.
However, I have not researched bankruptcy laws that much. If I filed under Chapter 7, would they be able to take my car - being that I would need it for my job? Also, would it be impossible to rent an apartment after this?
Once again thanks for the replies.
 
STAY WAY FROM MYVESTA.ORG
Jesus god damn.. have you ever looked at there FEE'S!
AllPaid Setup Fee:$495
Phone support: $75.00 {min 1 hour per month @1.25 per min}
Managment service $15.00 Per week.
Your first month: $630
Each month thereafter: $135.00
{That's the least amount too, that assumes you don't need extra phone time or buy there dumb self help crap}
There is a good chance a your rights have been broken by the debit collection company's. Good luck going after them for it. To put it bluntly, you don't have a chance in hell. Just focus on getting your bankrupticy done and over with... and stop answer phone calls from the collection people.
Jay
[ 01 March 2003: Message edited by: Thelazer ]
[ 01 March 2003: Message edited by: Thelazer ]
 
No problem, i hope everything works out for you. On that site that i listed, if he is still there PSYCHDOC is the man, he knows a whole lot of shit. He helped many on that site get out of jams.
Good Luck
 
Thanks for all the advice... I have somehow stumbled on perhaps the easiest solution. I persuaded my lower middle class parents - with whom I have a great relationship - to take out a loan which would ostensibly be in their name. I, however, will be making the payments. It is a home equity loan for 20,000 at the prime rate.
Instead of having minimum credit card payments totalling around $400 a month I will now be paying off the full balances and more with a six year payment plan at $343 a month. It really is a great option for those who may have any type of high interest debt. Of course, one needs to find someone that will trust you implicitly to do this - because most likely a person in dire credit straits would not be able to get favorable terms on a loan - if at all.
 
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