Working with creditors

[drowningNdebt]

I'm still scared of the idea of BK.

Has anyone tried working with creditors?

I have 3 accounts with one creditor and would like to consolidate all into one payment. I can't afford the 3 seperate payments.

Also, other accounts that are too high minimum pmts.

I'm trying everything I can to resolve my turmoil.

My new job income is LOW and fico is shot.

Ideas?

I'm very concerned.

[BROKENN]

Search the forum for "consolidation" and see all the answers.

I did consolidation a long time ago and my credit was shot far more than BK. The cycle went on for years and I paid a lot out and they still dinged me.

BK is stressful and can turn on ideas of police chasing you down, but it truly isn't. I know easy to say.... but truth. This is MHO

[magyar123]

I'm still scared of the idea of BK.

Has anyone tried working with creditors?

I have 3 accounts with one creditor and would like to consolidate all into one payment. I can't afford the 3 seperate payments.

Also, other accounts that are too high minimum pmts.

I'm trying everything I can to resolve my turmoil.

My new job income is LOW and fico is shot.

Ideas?

I'm very concerned.

Look into filing, possibly Chapter 7. What exactly is so scary? Consolidating the three accounts that you have with that one creditor will not eliminate your obligation to them. The only thing that will happen is that you will make one payment to them instead of three. Same with the other accounts.
You admit yourself that you have a low paying job and that your FICO is shot. Filing now will get rid of your debts, and soon after your'e discharged you can start rebuilding your credit.

[WharffRat]

I tired this route and when the lawsuits started to come from JP Morgan/Chase, that is when I contacted the lawyer and started my BK case. I actually told him I wanted to go CH 13, but he said we were right on the borderline for the means test and should try for CH 7. It worked out for us in the long run. However, because of switching gears are credits numbers are 553 & 552.

[HHM]

Here we go again...an unreasonable fear of BK combined with desperation is the perfect cocktail for bad decision making.

1. You say your income is low, so how exactly do you expect to pay anything back when you cannot even make the current minimums. Any consolidated or consumer credit counseling plan usually results in higher payments than your current minimums.
2. How would you settle your debt, if you have no money or assets, what are you going to offer. Most settlements range from 40-60% of the balanced owed (at the time you make the offer, which means after late fees, interest etc.)

3. If you have even read a few posts on this forum about BK, you would realize there is nothing to fear about BK. It is a financial tool like any other. What are you afraid, you have low income, credit is already shot, a BK will ONLY IMPROVE your situation.

[drowningNdebt]

Well after careful consideration there is no way I can make minimum pmts!
My income went from $125k year to my new job at $32k!
Do the calculations and I'm just getting by with utilities, car note, rent and other basics.
This really is hurtful.
I may want to include my car in the bk.
How hard is it to get a new loan after discharge?
I could ask a family member to cosign but that's last resort.
Would want my pmt no higher than $250. I pay $391 at 6.5%

[drowningNdebt]

Oh yeah and should I just wait until I get threatened with a law suit or garnishment to file?

[Mi Bankruptcy]

Oh yeah and should I just wait until I get threatened with a law suit or garnishment to file?

As HHM said. BK is a tool. I wouldn't wait until you start getting threatened with law suits. NOW is the time to start your BK planning and initiate it before legal action is taken against you, you don't want to have to make hasty decisions that could affect your filing when your already under more stress.

None of my creditors knew I was going to file. They suspected as I stopped paying and using my credit cards to file bankruptcy. Do the BK now before your bills start being sold to collections agencies and calls start hounding you.

Good Luck

[HHM]

How hard is it to get a new loan after discharge?

The day after you file BK, you will get mail from every dealership in your city offering to finance you.

The question is not whether you can get a loan (you will), the question is what will the quality of the loan be.

[TEW]

Well after careful consideration there is no way I can make minimum pmts!
My income went from $125k year to my new job at $32k!
Do the calculations and I'm just getting by with utilities, car note, rent and other basics.
This really is hurtful.
I may want to include my car in the bk.
How hard is it to get a new loan after discharge?
I could ask a family member to cosign but that's last resort.
Would want my pmt no higher than $250. I pay $391 at 6.5%

Before you get started on new debt look if that 250 is a realistic number. What is the cost of insurance and maintenance on that car? that payment is knocking you down to about 29K a year. how much is your rent?

[JJL]

The day after you file BK, you will get mail from every dealership in your city offering to finance you.

The question is not whether you can get a loan (you will), the question is what will the quality of the loan be.

Thats the truth ^^^

[JJL]

Before you get started on new debt look if that 250 is a realistic number. What is the cost of insurance and maintenance on that car? that payment is knocking you down to about 29K a year. how much is your rent?

Good point there. I make about what he's being knocked down to 32-33k and decided to do a ride thru on my lease. Its about $360 then there is insurance and gas etc. Its a big chunk of my new cash budget. While I love the car. if I come across a deal in the next year (from like family or something) or so on a cheap ride. I might turn it in.