New Member - Decisions, Decisions

[FunWithDebt]

Hello all,

I'm looking at the options for my wife and I.

We have struggled with this for too long, and its time to do something. We are current in our house, our cars, and all cc payments.

Here are the numbers:

Income: $9000 month
Expenses: $4500 month (includes mortgage, 2 car payments)
CC Paymts: $4500 month (all minimums)

Total CC Debt $206,000

My wife contacted a CCCS org and they said that under our plan, that the payment would be about $4500 a month for 5 years for a grand total of 270,000

I'm leaning to chapter 13, as I would much prefere to pay only what we owe, if not less. I contacted a local bankruptcy attorney and he said that our bk payment should be less, of course he made the disclaimer that was just a guess without all the facts.

I'm learning a lot from this site, plus other research.

Another crazy thought was to stop paying our cards, save our $4500 dollar payments and just trying to negotiate with cards one by one, but I'm sure that wouldn't work out very well.

Anyway, I look forward to discussing everything with you all regardless of what is finally decided.

Does anyone from Dallas Texas know any good BK Attorney's?

Thanks!

[walkthaplank]

Let's say you get every credit card to settle for 30%, are you in a position to pay the taxes on your added $189,000 of income?

If you were to take that $4500 and hire a BK lawyer you might still pay the full $206,000 but you will be doing it at 0% interest with no tax liability.

Just some food for thought.

[FunWithDebt]

Yeah, that is what I'm sitting with, and it seems like a good idea. I'm just not sure about anything and am quite scared about all the choices.

BK seems structured and of course is legally sound, and not the DMP mojo that the CCCS's try to sell you.

I know that DMPs work for some people, and theoretically I'll be making more in about a year, and I'd like to keep that.

We will talk to the BK Attorney this week and see what the options are.

[eddiep]

Its a tough decision, without a doubt! It will be difficult either way. You must have had a very good credit score to accumulate that much debt. (just like me!) Are you willing to take a bk on your credit report and live without credit for quite a while?

We have no choice but to file and we qualify for chapter 7, so it was a much easier decision. We also contacted CCCS first and they recommended that we file for bk. I am comfortable with my situation, we have finally destroyed our credit score because our debt is so high that it really does not matter either way.

Negotiating with the cc can be risky, they all have to agree for it to work, and I guess that can be all but impossible and you will be taxed on the amount that is forgiven.

For me, accepting the fact that I had to file was the toughest part.

[FunWithDebt]

Well, and even if I could get them to settle everything at 30%, its not like I could pay them on the spot, I could pay like a card a month or perhaps 2 a month, meanwhile our other 17 would be screaming for a payment, suing us, or sending it to collections.

I wonder if a company like bank of america really would settle 30k for 10k.

There are lot of questions I have to ask this week of myself, my wife, and our bk attorney

[FunWithDebt]

Yeah, and our credit is pretty good, my wife and I are on either side of 650 if you can belive.

[eddiep]

Actually BoA is probably one of the ones you can count on to settle. They seem to have a little common sense. They seem to know that something is better than nothing.

I do believe your score is 650! But believe me they know when they have given you just enough rope to hang yourself and will gladly push you over the edge. Once we were at the point that we could only make the minimum payments they cut our credit limits down to what we owed them which DRASTICALLY lowered our credit score because our debt to available credit was gone. They have no mercy!

[MommyMc]

I pm'd you with the name and number of our lawyer here in Dallas. He's great! It's a blessing we found him.

He'll answer all your questions in a first time, no charge visit.

Good luck!

[walkthaplank]

Talk to a few lawyers. You will see a pattern, don't trust the guy selling you the sun and the moon, or telling you "the magic" he is going to work for you.

Good luck!

[FunWithDebt]

I'm very warry of all of these options, DMPs and Lawyers. I'll will be doing alot of research and talking to a couple of different attorney before deciding to file.

[FunWithDebt]

Well, we have an appointment on Thursday with a BK Attorney, many thanks to MommyMc for her recomendation.

[EricaCallaha]

Make sure to take all of your numbers with you when you go. It is really worth it to be prepared and give them as many numbers as you can so they can give you a realistic payment scenario. Interview several attorneys, even if you like the first one. It is important that you kind of get a feeling with how well they really know their stuff. Our attorney (in Utah) only handles bankruptcy and has an excellent relationship with the trustee's office. Almost all cases are confirmend without going to court. You need a lawyer like that.

I agree with everything that everyone else has send about DMP's and CCCS. Unless everyone agrees...it will not work. And they usually don't work anyway. With Chapter `13 they don't have a choice but to accept what the court lays out and it stops the crazy interest.

Good luck....

[FunWithDebt]

Now, what I could cut out 1000 to 1500 a month from my budget, and snowball cards, What would you do then? Still BK?

I'm mean, isn't it worth it to try for 2 months and see if we can be discipline, because aren't we going to have to be disciplined in BK?