I'm not going to bore you with my sob story as it seems we've all ben there at one point in my life. To make a long story short, my debt revolves around the typical credit card and filing for bk is steming for Citibank and MBNA. Yes the two dreaded companies that I've been reading so much about. I swear I think Citibank is out to get me, you miss one payment and everything just snow balls into one huge mess. And taking out an MBNA personal loan was the worst thing I have done ever, boy what a mistake that was! Currently I'm about $50K in the whole on my unsecured debt. I only have one car loan out with Ford Credit and I am up to date on that with no late payments and owe $8K at this point.
Anyways, I have looked into the "non-profit" organizations and doing some sort of debt consolidation and debt settlement. However what worries me is that I think that I will be in a worse financial hole with that then oppossed to filling for bk.
Now I've been doing some research and called one attorney (which was not a pleasant experience) over the phone. My problem is that I own two vehicles, a daily driver that has no more then $1K in value to it and paid off and my new car (valued at $20K) that I have a loan still with Ford Credit ($8K remaining). My other problem is that I also hold a title to a jet ski. The car and the jet ski, I do not want to loose. Of all the mistakes I have done, granted I should have paid off the credit cards before buying a toy, I have worked my butt off to pay off the jet ski and pay off the car. I have been told that I will loss both of those items if I file chapter 7?
Are there any ways around that? I can probably get my parents to do the pay off on the car and have the title done in their name and I would pay them off later. But what about my jet ski? Since I hold the title to it, do I "sell" it to a friend or some family member and then "buy" it back from them? I supposs this would be illegal and most likely unethical?
Is chapter 13 the route I should take? If so, are my assests safe? Does it work similar to debt settlement where I would settle with my creditor's for a certain amount and then a payment is figured on a 36 or 60 month schedule? I have a full-time job making 40K a year. After my monthly expenses, including my car payment, I can have around $600-800 of income to put towards this (that is with no credit card payments).
Any advice would be appreciated as this is all new and actually very scary at the moment.
Thanks in advance,
Mario
Anyways, I have looked into the "non-profit" organizations and doing some sort of debt consolidation and debt settlement. However what worries me is that I think that I will be in a worse financial hole with that then oppossed to filling for bk.
Now I've been doing some research and called one attorney (which was not a pleasant experience) over the phone. My problem is that I own two vehicles, a daily driver that has no more then $1K in value to it and paid off and my new car (valued at $20K) that I have a loan still with Ford Credit ($8K remaining). My other problem is that I also hold a title to a jet ski. The car and the jet ski, I do not want to loose. Of all the mistakes I have done, granted I should have paid off the credit cards before buying a toy, I have worked my butt off to pay off the jet ski and pay off the car. I have been told that I will loss both of those items if I file chapter 7?
Are there any ways around that? I can probably get my parents to do the pay off on the car and have the title done in their name and I would pay them off later. But what about my jet ski? Since I hold the title to it, do I "sell" it to a friend or some family member and then "buy" it back from them? I supposs this would be illegal and most likely unethical?
Is chapter 13 the route I should take? If so, are my assests safe? Does it work similar to debt settlement where I would settle with my creditor's for a certain amount and then a payment is figured on a 36 or 60 month schedule? I have a full-time job making 40K a year. After my monthly expenses, including my car payment, I can have around $600-800 of income to put towards this (that is with no credit card payments).
Any advice would be appreciated as this is all new and actually very scary at the moment.
Thanks in advance,
Mario