How long before you filed and why?

[gman]

The debt settlement companies are worse than the collection agencies.

Most of them are nothing more than liars that will get you in a worse financial position than you're already in.

I spoke with a few debt settlement companies back in 2008. I opted not to use any of them. I came to the same conclusion as the others positing here...they could be worse than the debt collectors AND if you have the resources to do debt settlement - you can do it on your won for a fraction of the cost and risk.

Back in 2008, I started down the path of doing debt settlement on my own. I found a good website for doing debt settlement on your own and actually spoke for 30 minutes to the guy who owns the website/company for free.

He was very honest and actually said he could not help me given my then current situation. How often do you hear people turn away business???

He gave me great advice on how to do a 'stealth bankruptcy' and dodge creditors while I tried to save up the $$$ to do one-time debt settlement offers to the debt collectors. His advice was solid.

His website is www.zipdebt.com.

I simply had too much debt and not enough cash saved up to do a debt settlement. Others may be in a different boat than me. I figured Chapter 7 was the path for me.

I must say I would never do a Chapter 13. I have heard nothing but nightmares about that process and while I observed the Chapter 7 cases - there were a good number of people who filed Chapter 13 within the last 2 years who were converting to a Chapter 7. I figure they have lost another $2-4k in legal fees and an untold amount of payments to the Trustee that simply went down the drain.

[ccsjoe]

I think just knowing that someone else had to or wants to wait for X number of months to file will maybe make it easier for me, knowing I am not alone. I may even have to wait 1 year.

I wasn't really our choice. Until the end of August we have childcare expenses to the tune of almost 1K/month. Beginning September, those drop to only $250/month, plus the token amount they give you for school expenses (I think $180/month or something) so in order to pass the means test we needed the 850 amount. Thus we had to ramrod this thing through in 1 month.

[frogger]

freddy...they are BOTTOM feeders..the worse kind there are...i think almost as bad as collection agency some of them!!!

The debt settlement companies are worse than the collection agencies.

Most of them are nothing more than liars that will get you in a worse financial position than you're already in.

[tobee43]

I am looking forward to filing which is a complete turn around from when I was scared to death in 2008. I am hopeful that once this passes, I can live off of cash only and start a new financial life.

gman...i can't express to you how good it feels...although...it really hasn't sunk in yet...we are waiting for something else to breath down our necks!! LOL...just becuase we are use to it...it's an odd feeling...but a good one!

[gman]

I have heard so many bad things about the debt settlement companies that I didn't even think of them. I'l glad I didn't call them. As of now I stopped using all credit cards. Actually I cut them up. It will be a big adjustment but sales, clearance and coupons here I come.

I am learning more and more as I read this board. I am being thoughtful know of what I spend my money on and I'm keeping all receipts. Something new to me cuz I hated having all that paper around.

I just hope I don't have any lawsuits before I file. I'm not good with anxiety. I want to avoid them if I can. Hopefully my attorney will be a good one and help me.

Thank you for your responses and keep em coming.

I might note that the only credit card lawsuit I had was from one where I wrote and told them to no longer contact me.

I heard later from a former debt-collector that in his prior company, those "don't bother me letters" caused them to instantly file suit.

I have 8 other credit cards - and my strategy for them has been to hide and ignore. Hide to me meant changing my phone number, getting rid of my land line (did not use it anyway) - and using the call blocking on my cell phone. When I received letters in the mail - I ignored them (but kept them in a file.)

I think that unless you have the $$$ to make them a one-time cash offer for pennies on the dollar - there is no upside and a lot of downside from contacting debt collectors back. Others here may feel differently, but I figure these collectors make 100s of calls a day and when they get a live voice - they go into attack mode.

I also keep cash at home and not in the bank unless necessary to avoid a possible bank account garnishment out of the blue.

Finally - you can actually track lawsuits with your name on them online at your county court website. At least you can in my county. I check every month or so - like checking your credit report.

[nomoneyhoney]

I was just curious (only to try and make me less distraught) as to when you decided to file bk and when you actually filed..

I have been drowning in debt and my husband worked odd jobs and I work full time to always pay our bills. Alot of time I needed to use credit cards to pay for food and gas. My husbands health is an issue so he recently applied for SSDI and was denied. During this time I paniced and took out a cash advance of $9000 to cover cc payments and whatnot for a few months (I know I was very stupid) hoping he gets SSDI. Now I don't see getting aapproved for SSDI happening any time soon so my end result is BK. I know I have to wait at least 6 months for the Cash Advance to age before I can file. I'm going to my first face to face consult tomorrow.

I'm just curious to see how long everyone waited to file. It seems like these next 6 months will take forever.

Thanks

We filed immediately. It wasn't planned at all. Our CC payments were current and we even paid for the following month's cycle which was stupid. If we knew we were filing we could have saved that money. lol Anyway, it took us a week to file. When we found out that my husband has to pay for his school tuition fees out of pocket we knew we wouldn't be able to afford CC payments for the following month so I filled out the application and sent it a week later.
We didn't purchase anything that would be considered a luxury purchase nor transfer any assets. We've been broke for a long time. We pay the credit cards every month then use it again since we barely have excess disposable income to support our family.

Taking that much cash advance you'll have to wait at least six months. I'd wait longer if you can. There was a debtor at my 341 meeting, he was asked if he ever took more than $5k within the past six months and if more than $25k within the past year. The UST was there to ask him questions as well. It didn't go quite well for the guy and they have continued his case at a later date. He brought his three kids with him and they were all over the place and crying, it didn't help his case any. In addition,he withdrew $6k from his bank account one day before filing which made him look more suspicious.

Are you filing pro se or are you hiring an attorney? If you are hiring one, you should observe a 341 meeting to see how they handle their clients.

At my 341 meeting, four lawyers were under prepared, most cases were continued.

One forgot to sign the documents.
The other lawyer had the right case number but the wrong debtor's file.
The third one didn't have any evidence/paystubs. I guess the trustee never received it.
The fourth lawyer made an error with the exemptions and blamed it on his secretary.

There was one lawyer, she brought her laptop and a file folder. She was well-prepared and highly organized. If our case was more complicated, we would hire her. I think it's good to see how these lawyers work for the clients before hiring them.

[gman]

Well, I finally decided to get a clean start. Although I'm judgement-proof and unemployed, I realized that I had simply too much debt and too many creditors to just sit it out as I initially planned. In addition, I have a judgement against me in the amount of $25K and additional judgements could follow any day - and those won't go away once I might be able to get a job again. My credit isn't improving either because I almost have a new collection-agency popping up on my report every month. I'm quite sure that filing for BK will actually IMPROVE my credit.

The advantage in my case is that I haven't used any creditor I want to discharge for about 3 years simply because these accounts were already closed due to non-payment a long time ago. So in other words, I have already been living without credit-cards for a couple of years and yes, it IS working.

My situation is almost the exact same as this one. I too have not been able to pay credit cards since 2008. I've been sued twice ($7k and $25k) and had the $7k garnished - which is no fun. I am also at risk for being sued on around $200k more.

I recently lost my job and in a strange way am looking at this as a blessing. While unemployed - my 6 month average income will dip and I will finally pass the Means Test on Oct 1.

I have lived off of cash only for 2 years - and even made it through having 25% of my wages garnished. My original plan was to save up a wad of cash and make one-time offers to the collection agencies for pennies on the dollar. This did not work out as planned (due to the garnishment and the unemployment.)

I am looking forward to filing which is a complete turn around from when I was scared to death in 2008. I am hopeful that once this passes, I can live off of cash only and start a new financial life.

I have learned to look at things differently and value time and experiences much more than stuff. Once you get pas the initial kick in the gut of downsizing your life, you actually feel relieved, at least I did.

Best of luck with your situation!

[tobee43]

I just hope I don't have any lawsuits before I file. I'm not good with anxiety. I want to avoid them if I can.

don't worry...even if you do....they can be removed after the bk is discharged...however, it will cost you more with legal fees...but they will be discharged as well.

[2bdebtfree]

I have heard so many bad things about the debt settlement companies that I didn't even think of them. I'l glad I didn't call them. As of now I stopped using all credit cards. Actually I cut them up. It will be a big adjustment but sales, clearance and coupons here I come.

I am learning more and more as I read this board. I am being thoughtful know of what I spend my money on and I'm keeping all receipts. Something new to me cuz I hated having all that paper around.

I just hope I don't have any lawsuits before I file. I'm not good with anxiety. I want to avoid them if I can. Hopefully my attorney will be a good one and help me.

Thank you for your responses and keep em coming.

[tobee43]

I wish I wasn't in panic mode. I guess I get very impulsive when things happen and the cash advance was one of those moments

ebdebtfree...NOPE...not a good time at all to panic...it's time to sit...reflect...and be thoughtful with your every move.

The advantage in my case is that I haven't used any creditor I want to discharge for about 3 years simply because these accounts were already closed due to non-payment a long time ago. So in other words, I have already been living without credit-cards for a couple of years and yes, it IS working

ibroke...that's great to hear!!!

I took some bad advice from a debt settlement company about 20 months ago. I wanted to settle with my credit card people.

freddy...they are BOTTOM feeders..the worse kind there are...i think almost as bad as collection agency some of them!!!

[Freddy03]

My story -

I took some bad advice from a debt settlement company about 20 months ago. I wanted to settle with my credit card people. They told me to stop paying them and wait for the settlement offers. Well the offers never came....lol

I tried my hardest to settle with everyone. Only a few would budge or put me on hardship programs. The others I just couldn't afford to pay anymore b/c of the extreme interest rates and montly min payments. So I stopped paying them.

I was only successful in one actual settlement. Then the lawsuits started coming in. Two within a week from each other. I fought the first one hard and lost. Now I have a judgment which has made me realize I can't afford a wage garnishment and fearing my bank account would be levied any day.

My one regret was not filing sooner. I wish I decided BK was for us before the lawsuits started.

We are hoping to file late Oct.

[IBroke]

Well, I finally decided to get a clean start. Although I'm judgement-proof and unemployed, I realized that I had simply too much debt and too many creditors to just sit it out as I initially planned. In addition, I have a judgement against me in the amount of $25K and additional judgements could follow any day - and those won't go away once I might be able to get a job again. My credit isn't improving either because I almost have a new collection-agency popping up on my report every month. I'm quite sure that filing for BK will actually IMPROVE my credit.

The advantage in my case is that I haven't used any creditor I want to discharge for about 3 years simply because these accounts were already closed due to non-payment a long time ago. So in other words, I have already been living without credit-cards for a couple of years and yes, it IS working.

[2bdebtfree]

I wish I wasn't in panic mode. I guess I get very impulsive when things happen and the cash advance was one of those moments. Boy, did I learn my lesson.

[2bdebtfree]

thank you. If anyone else wants to reply I think it would be helpful to me. I think just knowing that someone else had to or wants to wait for X number of months to file will maybe make it easier for me, knowing I am not alone. I may even have to wait 1 year. uughh! But I'm waiting to talk with lawyer about paying cc's. On the phone when I called about a consult I told him about the cash advance and he said if I paid a portion of it back I could even file earlier. We'll see what he says tomorrow.

I had one phone consult with another attorney and she said basically wait 6 months to file. If I paid portion of Cash Advance I could do it after 3 months. She couldn't tell me whether to continue paying cc's or not. That was up to me. Tomorrow's attorney wants to see my paperwork and set up a budget for me.

Thanks all for your responses

[tobee43]

yes, joe...it's true our situations are not similar...but you researched and were extremely mindful of every move you made and when you made it.

i understand it took much to get you to that point. but your were thoughtful and careful about what and how you proceeded...which is excellent!!

i can't wait for the PARTY on friday...i'm still awaiting the docket number! LOL!!