Want to pay it off

[almagg]

the debt management sites listed on the doj site seem to be what everyone warns against. are they truly approved and checked out?

my situation:
lost job in 2003/2004 and used ccs to live.
when i stopped paying it was about 32k total.
i moved to another state and in 2005 income was 13k.
got some unemployment and food stamps.
was planning on ch7 but could not come up with the $500 to get the lawyer started and since then have moved to another county.

well the good news is that i start a job monday at $42k/yr, to start.

i want to pay everyone off and know that i can do it in less than five years.
i live semi-frugally even when i am making good money i.e., do not eat out a lot, do not have 'toys', bring lunch to work etc...

i do not want to deal with the creditors directly since they can be aggressive and bullying. i missed a few car payments last year and got a taste of that.

i am sure some of these are in collection. last year i got two letters which at the time i threw away. then after i met with a lawyer i got one which i kept.

will bankruptcy lawyers mediate a payback plan with the creditors?
that is, do what these counseling agencies do?
i think that would look better.
i would pay back the original amount and hope that interest would be zero or less than 5%. am i dreaming?

any suggestions?
oh, i live in florida.

[HHM]

the debt management sites listed on the doj site seem to be what everyone warns against. are they truly approved and checked out?

They are only checked out in so far as the Pre BK class they offer meets the guidelines laid out in the BK code and by their local trustee. Otherwise, regarding actually using one of those listed, buyer beware.

Debt Management programs are not typically fraudulent; most of the time it is the debtor who fails, not the program. A debtor who is so fearful of BK, signs up for these, but usually they can't make the payments. The other issue is that not every Debt Management program works with every creditor. Most people go into these things with unrealistic expectation and not doing their homework, so they get burned.

[lrprn]

(Almagg, fyi...I deleted the duplicate post you made in the Ch 13 forum. It's best to concentrate answers to your question in one spot in a new thread like this one.)

will bankruptcy lawyers mediate a payback plan with the creditors? that is, do what these counseling agencies do?

Bankruptcy lawyers typically help people file bankruptcy, but some will take on negotiating with creditors. However, it will cost you quite a bit to have a lawyer do this for you. It isn't that difficult to negotiate with your creditors yourself - see http://www.creditinfocenter.com/debt...ttlement.shtml

i think that would look better.

Who do you think it will look better to? Creditors want their money - they don't care how a debtor chooses to pay it back to them.

i would pay back the original amount and hope that interest would be zero or less than 5%. am i dreaming?

Yes, you are probably dreaming at this level, especially if you are not currently deliquent on your credit card accounts.

If you can't/won't negotiate for yourself, then you need a debt management company or credit counselor to help you set up a realistic debt management plan. The FTC explains what you need to know about debt management companies and how to find a reliable one here - http://ftc.gov/bcp/conline/pubs/credit/debt.htm . Do keep in mind that most debtors fail at their debt management plans because they really needed to file bankruptcy but were trying to avoid that at all costs. Is that the case for you?

It won't hurt to make a few free consultation appointments with 2-3 bankruptcy lawyers in your area to discuss your options. Often bk lawyers will know which debt management companies are legit and which are questionable in your area - you can get a good recommendation that way if it looks like debt management rather than bankruptcy will be your best option.

[almagg]

definitely delinquent

i stopped paying everyone in 2004.
have 11 creditors. at my last address i received two letters for debts that went to a collection agency.

also i overdrew at my atm - $900.
and had a $10k personal line of credit.
does that go into the 'check' system that banks use when someone applies for an account?

do they check when someone opens a savings account?

thanks for your info.
yeah, later i realized posting under the 'general' would be better.

[lrprn]

i stopped paying everyone in 2004.
have 11 creditors. at my last address i received two letters for debts that went to a collection agency.

Have any of your 11 creditors or their collection agencies have taken you to court for a judgment?

also i overdrew at my atm - $900.
and had a $10k personal line of credit.
does that go into the 'check' system that banks use when someone applies for an account? do they check when someone opens a savings account?

Yes, since you left owing your former bank/credit union both ATM and loan funds, they probably have entered you into the CHEX system. If they have, then you will have a difficult time opening a checking or savings account. Most (but not all) banks and credit unions will check the CHEX system first and deny accounts to those listed there. To see if you are listed and what information CHEX is sharing about you, you can order your personal consumer report from them at https://www.consumerdebit.com/consum....htm#TopOfPage

[almagg]

i do not know of any judgements.
but i do not believe they yet have found my new address (in a new county).
i figure once i file income tax they will know.

yeah, regarding the chex system and alll, it is definitely time to seek legal counsel.