Credit cards, collections, and charge-offs (oh my)

[cspa522]

We entered a debt consolidation program 16 months ago, and haven't paid on our credit cards since then. 3 of them have been settled via the program, but 6 of them are not as of yet. We are dropping from the program and filing Chapter 13 within the next month or so.

I believe what my attorney said (we're officially signing with her next week - waiting for pay day!) is that we can get rid of those credit card debts, but does it matter if they've gone to a collection agency? Will they still be eligible to be included in our bankruptcy filing?

[jl37]

They should still be included even with the going to collection agencies as the original creditor is notified when you file. The one little nasty thing I noticed in my own situation is that after being in a debt settlement program for about 15 months and having 5 cards supposedly settled 2 of them have come forward seeking the money which had been supposedly settled months ago. Make sure you have good documentation - proof of the settlements as some of these creditors - agencies are real sleezebags.

[klandsb]

Makes no difference who has them as long as you owe the money... I'm sure they show up on your credit report as debt.... Junk debt buyers purchase them from the lenders for a fraction of what u owe hoping to scare u enough to pay them ... There a dime a dozen out there

[cspa522]

They should still be included even with the going to collection agencies as the original creditor is notified when you file. The one little nasty thing I noticed in my own situation is that after being in a debt settlement program for about 15 months and having 5 cards supposedly settled 2 of them have come forward seeking the money which had been supposedly settled months ago. Make sure you have good documentation - proof of the settlements as some of these creditors - agencies are real sleezebags.

Oh fantastic. I'll definitely make sure I have all the proof and letters I can get my hands on before we officially drop them to file bankruptcy. Thanks for the tip!

[lrprn]

Also if you have the names of the original creditors and the collection agencies the original creditor sold your debt to, list them ALL on your creditor list when you file. Makes things simpler if the collection agencies try anything later on.