I am in a debt of around $30,000. My monthly is $2500. I am not being able to manage any of the payments properly. What should i do in this case? I find bankruptcy to be the only solution right now. How do i go about it?
Wed Jul 25, 2007 6:41 am
I think this is a bad idea. The bankrupcy hangs on for 10 years on your credit report. I was in dept $103,000 three and a half years ago. Today I am $35,ooo in the red.. I continue to pay the balamces down.
What is the debt? Back taxes, student loans and other puplic debts are not allowed in a BK
Live simple don't take trips for a couple of years, consider a second job to get you balance down. Tomtastic
I agree with you that this is not a favorable idea. However Benson can think of a debt settlement.
Before you think of bankruptcy its better to see the pros and cons of the same. Bankruptcy affects your credit score in a major way. Debt settlement is a good option and it has worked for many people. I would suggest approach a debt settlement firm. They will help you in many ways. Let me tell you some good facts about debt settlement.
If you want to enroll in a debt settlement program
* you have to sign a limited power of attorney.
* The debt settlement agency will negotiate with the creditor on your behalf and settle the debt at a lower amount may be 40-50% lesser than the borrowed amount.
* In this case you has to make a lump-sum settlement payment. For this you have to keep making payments monthly and the settlement firm accumulates the amount.
* Only when they feel that now they can, they will pay off the debts.
* The creditor agrees to settle at a lower amount because he will receive nothing if you file a bankruptcy.
* The legal procedure engages time and money which your creditor will not be willing to pay.
Choose a good debt settlement company and if the programme suits you go for it. _________________ Regards,
You can also try consolidation. It is a process where you (or a company acting on your behalf) negotiate with your creditors to reduce interest payments, maybe even have some fees waived. It won't hurt your credit as badly as debt settlement. If you use a company, research them to make sure they're reputable. _________________ I don't dream since I quit sleeping
Mon Jul 30, 2007 4:11 am
Thanks for all the advice but I am in a deep mess. Morningstar I do not have enough to even arrange for monthly payments thats why thought of opting for settlement. But still I have to pay. i just want to know which will be better. Consolidation is good but i have only one cc account not many.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.