I think I'm lost!

[esedlo]

I hope I'm posting this in the right place. I have a consultation scheduled w/a BK lawyer on 4/30. Meanwhile, a creditor to whom I owe nearly $29K made a settlement offer two weeks ago that would cut my debt to them down to around $4000. They made me post date a payment for 4/30. I'd love to settle w/them but they want me to make huge monthly payments for the next 6-7 mos. which I can't do. I got my tax refund so I could probably pay them the $647 this month (just barely), but aside from a miracle I won't be able to pay them the other months and may not be able to pay my other bills if I let them take what they want this month. I just don't know if I should call them and tell them to cancel my payment or go ahead and let them take this one. Since I don't have an attorney yet I can't ask about this and don't want to shoot myself in the foot somehow. TIA for any suggestions.

[esedlo]

I think I'm lost!

I'm trying to figure out how to use this site and apparently don't get it. I posted a question and then realized it was in the "exemptions" forum? The question I have is this:

I haven't had my consultation w/a lawyer yet. That is set for 4/30. A creditor made a settlement option w/me 2 weeks ago and I didn't know what to do. They offered to reduce my debt by around 80% which would save me almost $20000. I would only have to pay them about $5K but they required me to postdate a payment of $647 for 4/30. I got my tax refund the other day and might be able to pay them this month, but after that I doubt I could pay all my other bills (my income is unpredictable) and it would take an act of God to make these payments every month for the next 6-7 months they require. I don't know whether to call them and cancel the first payment or not. I have no idea how/if this will impact my BK proceeding and have no legal counsel yet. Any suggestions? TIA for any advice!

[HHM]

I have merged your two threads...

If you can't afford it, you can't afford (thus, in hindsight, you should not have made the first payment). One thing that will not happen is them canceling the payment; you sent it, it is gone.

Don't send them anymore checks, go see the BK attorney, and eventually file BK.

[Phillymanhere]

A great deal that you can't afford is a deal you can't afford.

It can be a little confusing when you get into the twisted, confusing world of high debt and bankruptcy. But the bottom line is ... you can't afford it (the settlement), which means it's too much, which means you have decline it.

[esedlo]

Thanks for the response. So logical "A great deal that you can't afford is a deal you can't afford."

About the post-dated payment, they told me they would cancel it if I called them by 4/29 so I haven't actually paid it yet. Let me guess though, they were just blowing smoke when they told me I could call and cancel? What do you think?

[esedlo]

This financial disaster I've fallen into has me so confused I can't even keep my numbers straight! But the actual numbers aren't that important. I just don't want someone putting a lien on my house because I want to sell it and move as soon as possible. I've been trying my best to make at least minimum payments to all my credit cards for as long as possible. A divorce and lots of other things made it impossible for me to pay the minimum to this particular lender. Then, w/o knowing what else to do, I took a cash advance from another card to pay my bills w/last week. It was only $350 so I don't know how that will affect me, but until then I had never taken an advance. What a nightmare! I'm learning everything I can about this but it's still such an overwhelming experience. One I'm sure every member of this forum knows all too well!

[HHM]

Definitely try to get the payment cancelled...

but don't be surprised if that check hits your bank account.

[esedlo]

Thanks, I'm calling. Hopefully it won't hit the bank. I guess I should make w/draw any available funds too? Then I could pay my other bills w/money orders.

[FreshLikeADaisy]

Esedlo, paying your bills with money orders to prevent any checks bouncing if that payment does go through sounds like a great idea. Call them as well, but don't assume it won't hit your account anyway, as others have pointed out.

You know, initial bk consults are often free. You can go see one or three bk attys now, even if you don't intend to file yet. In your shoes, I really think this would be advisable, because they can tell you upfront what your best course of action is, how to pay them, etc. Also, once you have *retained* an atty, you can redirect creditor calls to their office; you can retain one now even if you don't intend to file immediately. So even if you're not ready to file yet, don't let that stop you from seeing an attorney or three today.

Good luck!!!

[keepmine]

Stop payment on that check NOW!
Also, stop paying all debt you wish to discharge. If you still can't make ends meet, you have a bigger problem than bk. For sure, don't file bk until you can support yourself.

[southernbelle]

I would stop payment on that check it would keep you from having trouble down the road. Take it from me, if everyone I owed offered me a "great deal" to settle with them, I still wouldn't have been able to pay them all because I just can't afford it. Make sure you get a realistic budget before you file BK or you might end up in the same situation again.

Good luck.