Thank you all for the great resource that this forum represents. I was hoping someone might have some feedback on a specific question about some difficulties an employee of mine is having and which she recently confided to me. She is a very nice woman, kind and honest as the day is long, but not especially financially sophisticated and has ended up behind the eight ball as a result.
In a nutshell: She went through a divorce a few years ago and was left without an income for an extended period. She contacted the creditor bank (BOA) immediately, but they refused to work with her at all and she eventually fell behind on her small balance and saw her rate jacked up to 30% or so, where it has apparently remained. Once she found work again, she resumed payments but has never been able to get current and the principal continues to spiral as a result. I believe it is now over $20,000. She has no other delinquent debts. In fact she has very few other debts at all.
In a situation like this, with one primary creditor, what is the likely best course of action? My gut feeling is that -- given their recent difficulties -- the bank would probably accept a fairly small settlement if convinced the alternative was bankruptcy. But I've got no experience at all in this area and frankly, given how badly they've treated her, I'd be happy to see them get nothing at all.
Would anyone care to volunteer an opinion? Much appreciated.
In a nutshell: She went through a divorce a few years ago and was left without an income for an extended period. She contacted the creditor bank (BOA) immediately, but they refused to work with her at all and she eventually fell behind on her small balance and saw her rate jacked up to 30% or so, where it has apparently remained. Once she found work again, she resumed payments but has never been able to get current and the principal continues to spiral as a result. I believe it is now over $20,000. She has no other delinquent debts. In fact she has very few other debts at all.
In a situation like this, with one primary creditor, what is the likely best course of action? My gut feeling is that -- given their recent difficulties -- the bank would probably accept a fairly small settlement if convinced the alternative was bankruptcy. But I've got no experience at all in this area and frankly, given how badly they've treated her, I'd be happy to see them get nothing at all.
Would anyone care to volunteer an opinion? Much appreciated.
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