Another Cross Coll. ? and a collection ltr.

[southernbelle]

Here's the problem. Since I am trying to save for pay for my atty, and I've been avoiding paying cc's, loans, etc. Two of those loans is thru a bank that also holds my mortgage (one cc and one sign. loan). Their atty. sent me a letter today that stated that "payments have not been made in accordance with the terms and conditions of the note, and my client hereby exercises its right to accelerate the amounts due and owing thereunder." It also states that I can dispute the validity of the debt in writing within 30 days...blah blah.

Since this note is secured by my home, is it wise to contact this atty to try to make pmt arrangements or does this wording make it seem like they want all or nothing? Since I have about 3 more weeks before filing, if I file a successful Ch.7, can this debt get discharged or will they just tack it on to the mortgage and let it accrue interest after the fact? Is any payment to them considered preferential?

Sorry for the questions, but would you guys contact this atty and ask for a payment plan or deal with the Bk first then reaffirm afterwards? Also is there such a thing as a 722 loan or any other type loan for "slow payment" folks like me that I can get for this type of debt or is that just for cars or something secured? Is refinancing possible this close to filing BK for this 2nd mortgage or will the bank lump all 3 notes together anyway?

P.S. In addition to this loan for $4k, I also have a credit card for $4K. I wish I would have visited this site before taking out these loans.

[southernbelle]

Any comments or suggestions? Anyone?

[One Half Full]

If you have a lawyer, and are starting on your BK paperwork then the lawyer will tell you what to worry about. In my case (and please, this is not legal advice) I have a similar situation. My bank owns my credit card, and car loan. I have not received a letter from a Creditor's lawyer yet (I'm sure one is on the way) but when I called My lawyer to talk for the first time, I asked about lawsuits and she said that even if they have already begun, I really shouldn't worry. If you cant pay now, you certainly could not pay an "accelerated" amount. Can you get to the lawyer to have them start on your case? If I was in the same situation, I would start with the lawyer within the next week or so. Good luck.

[southernbelle]

I contacted the atty. I plan to hire and gave him a deposit so that we can start the paperwork asap. He said that since I will need to file Ch. 7, if I want to keep my home, I will have to reaffirm the debt anyway because the contract gives them the authority to add the unsecured debt to the mortgage at the end.

I called the lawyer that sent the demand letter and he sounded like he could care less about the whole situation (pretty indifferent). In fact, I had to basically read the letter he sent to me to jog his memory. Anyway, he told me to call the bank representative that referred the case to him and talk directly to her, and I left a message, but haven't heard anything back from her yet.

Since the cross coll. clause is in effect for the unsecured portion, I hope any payments made to save my home isn't viewed as preferential payments, but I'm stuck between a rock and a hard place. The atty. says its a tough call on that one, but having a copy of the agreement will help prove the payments.

I think life would be easier if I didn't want to keep my house, but in my city, it's impossible to find a decent and affordable place to live with bad credit.

[southernbelle]

Oh, and one more thing, since there's no way in heck I can pay the balance 100% in full, I was told by my atty. to ask if I could pay what I could to keep the total amount I pay to them as low as possible, but still show good faith in repaying the debt.