How Do I Start?

[Shelly]

How do I know if I qualify for partial bankrupcy? Is it an all or nothing thying, or can I keep some of my credit?

[HHM]

First, there is no such thing as a Partial Bankruptcy (although there are BK's called single asset real estate cases, but that is a special class that rarely if ever applies to the average consumer).

Your duty under the bankruptcy code is to list ALL your creditors, i.e. people you owe money too.

Bankruptcy is basically you opening your financial life to the bankruptcy court. (Assets, income, creditors, expenses, etc etc)

[Shelly]

Hi HHM, Thanks for taking the time to answer my question.
One of the things I have looked into a little is consolidating my debts, but am leary of the places I've talked to. They say they can try to settle with my collectors for less the interest, etc. ? It just sounds too good to be true to me, and they want hundreds of dollars up front.
I have settled one of my own debts for $400....I owed $1,200. I am leary to approach collection agencies on my own.....the one I settled was with the company I borrowed from......
.Do you know anything about consolidation?

[shygal]

Shelly,
what I do know is that we tried credit counseling for a year and it did nothing for us! It may work for some but in our experience it ultimately put off what we had dreaded, Bk.We thought trying to take care of our debt on our own (with a company that would reduce our monthly pmt. and interest ) would work BUT it didn't so we file our papers with our lawyer today ! Good luck.........

[edwards2]

I work for an agency that receives a lot of calls inquiring about the debt consolidation companies. There are a lot of them popping up all over the place. What you want to look for is a non-profit. They typically ask for a donation but not a set fee every month. If the company promises you they can lower your interest rates before they have even spoken to your creditors - do not do business with them. They may have history with the creditor but they cannot know for sure the creditor will agree to their terms in your case. The debt consolidation concept has been out for awhile now so most of the creditors know who they will or will not do business with. A good way to make sure you are not "had" is to call your creditors on the front end and talk to someone in authority and find out if they would (would -operative word) be willing to work with the company you are considering. This needs to be done BEFORE - not after. You can also check with the Better Business Bureau where you live. They generally have info on these companies. See what their track record is. Most of the feedback we have gotten about these companies has been negative - unfortunately.

[Shelly]

Thank you all so much

[3131tj]

Shelly,

Ditto on all that edwards2 said. I met with a legitimate Credit Counseling Service last year. It was a free consultation and if I had proceeded it would have been a one time fee of $25. It was a non-profit and one of the "original" ones (if not the first). I am not sure if I can post their name and website here.

You can also get a free consultation with a bankruptcy attorney, so you may want to meet with both and see how things look afterwards. Considering that you were able to work 33 cents on the dollar deal with one card already you may be able to do it on your own - of course depending on your other debt.

Since no one here knows who you are you can also post your specific financial situation and get an opinion (opinion only) as to whether BK, Counseling or negotiating might be best. That advice/opinion, and your 2 free consultations will at least give you a better handle and understanding of what each option holds for you. Good Luck!

tj