Snowball Effect

[stephen1366]

Help me Please!!

I've run up 34,000 in credit card debt. This is from 19 different credit cards !
I've been on a payment plan with a ccs ( non profit) agency for the last 6 months but the payment of 850 is killing me. I only make 1500 a month and I could'nt make my last payment b/c of the hurricanes in florida. I told my ccs manager I was considering Bankruptcy b/c I can't afford the payment and she said "You don't want to do that" . Is that b/c they have a financial interest in my case? , Then I said the payments are too large and she replied "youre making the minimun". I need a resonable payment plan and don't forget I have to work with 19 different creditors. What should I do???

[Dawn1970]

Stephen, I don't know whether home ownership is an issue here but if it's not, then by all means you ought to file a total liquidation bankruptcy. Don't worry about what the neighbors and/or your family members say. You can't eat pride, nor has pride ever been known to go pay a light bill for you. Sometimes advice is what you ask for when you already know the correct answer but wish you didn't. I'm sure you've heard the old "It'll ruin your credit for 7 years" speech from well-meaning people. But the thing is, from what you've described, your credit is probably already in the toilet. If your family is having to do without things because you're having to pay $800 a month to credit card companies, it's time to make a change and the bankruptcy laws enable you to do that. I have my creditors' meeting today for my total liquidation bankruptcy and I just can't tell you what a huge relief this is going to be for me. Making the decision to file the "Big B" was a very hard, stressful decision but once I made it, things have seemed to fall into place and I'm looking VERY forward to being rid of my creditors. I even gave up my house because with what's happened in my life I decided I'd rather rent a place than to have the upkeep of home ownership. As for the credit counseling people, yes, I'd wager that they do have something to lose if you file bankruptcy, even if they claim to be non-profit. I will come back this evening and check with you and see if you've posted again. Good luck with your decision, whatever you decide. If you decide to file, I'll 'hold your hand' through it if you like because after today I will have gone through the whole ordeal and maybe can tell you what it's like!

[stephen1366]

Dawn , I do not own a home so that isn't an issue. I don't know which "b" to file and don't forget I have 19 different creditors. My ccs has managed to get the the intrst down on most of them ( s**rs wont budge , 21% )
It seems ccs says no to "b" and the attorneys say yes to it, who can I trust?
My ccs told me I might be kicked off the plan and have to wait 5 years to get back on meaning the intrest will go back up and so will the minimum payments.
On top of that I'll Probally get late charges for the september payment(s) I didnt make!! (19 creditors x $25-35 = $ 475-665). I really appreciate your reply!! Maybe "b" is an option or a resonable payment plan !!

[stephen1366]

also,
Do I have to put all 19 creditors in the bankruptcy or can I just select a few so I wouldnt have to deal with 19 different people at a hearing. MY average balance is 1700. I figured on my ccs plan it would've taken 4-5 years to payback and then I dont Know what my credit would be like after that.

[Dawn1970]

Stephen, Here's the thing- most times at the creditors' meetings for Chapter 7's NOBODY SHOWS. Especially if it's unsecured debt, which credit card debt pretty much is. I just had my creditors' meeting today for my #7 and my mortgage company did not even show about the house. (They know they're getting it back anyway, so it wasn't necessary for them to show). But still, it was easier on my anxiety level not to have to face them. I only had to face one guy who represented a finance company that I financed some furniture through and he was actually nice, believe it or not. He said "Do you even still have this furniture?" I probably could have gotten by with telling him no. THere was a whole room full of Chapter 7 filers and everybody who came representing a creditor had to stand up and tell who they were and not a ONE of them was from a credit card company. They just don't tend to show because they pretty much know they aren't getting anything. The creditors were all either local banks or mortgage lenders. They are usually the ones who have a secured interest, like property or houses. That's not a guarantee that yours will go the same way, but I'd guess it would at least be close. If you don't have any property or a home to lose, I say Go For It and take the #7. That's just my opinion! Also, in my opinion, to hell with that ccs counselor. I believe she stands to gain from you financially as long as you don't file "The B" so naturally her opinion is swayed toward what would benefit her the best. Listen to the lawyer.

One other thing- I did a lot of research and got a lot of opinions before filing mine and one of the big questions that you should ask yourself before making this decision is "Do you expect your situation to get better?" (without winning the lottery or something really unrealistic). So if I were you I'd ask myself that and really be candid with myself about the answer.

Just my opinions!

[stephen1366]

Chapter 13

Dawn, First of all thanks for your advice!!
What is the diifference in me paying through ccs and going on a chap 13 payment plan. In the end the debt is repaid right? And what about interest rates on chap 13? I'm not sure about chap 7.

[stephen1366]

Dawn, I copied this from an attorney's web site :

The decision to enter a consumer credit counseling program or to file bankruptcy should depend upon the facts of an individual debtor's situation. Our experience and expert sources tell us that both consumer credit counseling (even with a 100% payout) and bankruptcy will impact a consumer's credit similarly.

So now I'm starting to lean towards bk for relief, But need to figure out which
type to file.

Stephen

[Dawn1970]

Good morning Stephen,
As for #13 or #7, that's a very personal decision that you have to make. But you gotta admit, if you're going to have a bankruptcy on your record anyway, it's pretty tempting to have the kind that enables you to walk away from all those debts! With a #13 they put you on a very strict 'budget,' from what I understand, and you must stick to the payment plan. From what it looks like to me (a total non-professional, mind you, just somebody expressing an opinion) it would seem to me that having either a #7 or a #13 on your history goes against you somewhat equally in the future so since there's no home or property to lose, I think #7 sounds like a pretty attractive option for you. You're already on some sort of repayment plan with the credit counseling people and it seems to be placing a bit of hardship on you (?). Although of course you said they are charging high interest. That doesn't sound like this credit counseling agency is working in your best interest, if you don't mind me interjecting another personal opinion! Keep in touch! I'll be interested to know what you decide to do!

[bart]

dawn do you know what they can do to my house?

dawn,

hello....i want to file chapt 7 i own my house with about 200.00 in equity.
im afraid they might want me to sell the house

i alraedy refide and paid 200,000 to creditors and then the house went up in value again. so now its worth 200,000 in equity.

my house was deeded to my parents two years ago.
when i go to court can they find out that i deeded it to my parents?
and will that be a problem?

[Dawn1970]

This is a good question for Todd or someone with legal know-how but if you deeded it over two years ago I can't conceive that it would be a problem. That's just my opinion!
P.S. I cut and pasted your question on a new thread so that hopefully somebody qualified can answer it! Good luck to you