Help Debt Relife or BK

[karenkem]

Hi, I fell into to this forum by mistake browsing BK Laws in Pa. I am currently 3 mths into a Debt Relife program through a Law firm ..so they call themselves.. I have a weird feeling about them just the way the funds I put aside are being handled.
Which has led me to seek out other options, I am married and in credit card debt 40k. I only earn 22k yr. Husband earns 60k were above the meadin but not sure what the means test was saying, do I or dont I qualify for either 13 or 7.
I read somtimes your debt is paid back 100% sometimes let go in part or in whole is this true?
In no way will this harm my hubbys credit or our home if I can go 13?????
I am calling a BK Att. this week to see what are my options.
Any and all coments appericated.

[Flamingo]

First, it sounds like you accepted an offer from a debt settlement or consolidation business and what they are doing is accumulating your payments to pay their own fee and distribution sums negotiated with creditors to the creditors while your credit is in the tank as bad as if you had filed BK. If they have negotiated with those creditors to reduce the amount owed and not just the interest, you may be responsible for taxes on the forgiven amount from the creditor - I hope they gave you enough information before hand as to their operations before you accepted.

What you shouuld and need to do is call and make an appouintment with a BK attorney (most give free initial consultations) and get your situation reevaluated. If your mortgage or any other debts are in joint names, your husband needs to go along as those debts will need to be included. take with you a complete listing of all your debts, amounts owed, paperwork from that debt settlement company, a listing of your assets, paystubs, sources of income and your most recent tax returns. The attorney will advise you what you can and cannot do for your particular situation.

Best of luck to you.

[loveends1981]

I agree!

What you shouuld and need to do is call and make an appouintment with a BK attorney (most give free initial consultations) and get your situation reevaluated. If your mortgage or any other debts are in joint names, your husband needs to go along as those debts will need to be included. take with you a complete listing of all your debts, amounts owed, paperwork from that debt settlement company, a listing of your assets, paystubs, sources of income and your most recent tax returns. The attorney will advise you what you can and cannot do for your particular situation.

Do exacty what Flamingo said to do.
We looked into the debt consolidation and found out it would be easier to just do BK. We were over 20k in debt. Its not that bad to do BK, but once its over, it takes a TON of bricks off your shoulders!

[klandsb]

I was involved with a debt settlement company. Paid them a fee every mth and they made sure to get there money first , small amount went into a stored saving acct and in the end they ensured me they could settle my credit cards for 50% what I owed on them... Anyway, long story short....Run as fast as u can away from it ... It sounds good when they are talking to you about it and how it SHOULD work but it doesnt and they make there money & you get sued from the creditors who they advise u to stop paying immediatly..... I am currently looking into doing a Chapter 13... Not sure what to do but I know I have to get out from under this credit card debt.. I just hate the thoughts of 10 yrs bad credit...The 5 yrs pmts dont really bother me as I have been living on cash only for 10 mths and have learned how to do without and have pennies to live on till payday...