Has anyone had any experience with a non bankruptcy workout ? I found this info while looking for chapter 7 info and was wondering if anyone has heard of it or knows anyone who has tryed it .
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Has anyone had any experience with a non bankruptcy workout ? I found this info while looking for chapter 7 info and was wondering if anyone has heard of it or knows anyone who has tryed it . -
There really is "no such" thing as a non-bankruptcy workout.
All this amounts to is either debt settlement (i.e. pay back less than you owe, assuming you have the money to make a lump sum payment), or some sort of modified interest and payment plan (i.e consumer credit counseling). The problem here is that not all your creditors will participate. It's not like you can sit them all down and work it out.
A workout is much more common in the business context. For the average individual, a "workout" really only amounts to a piece meal attempt to settle debts, and most people who try this first end up filing BK anyway.
If you call your creditors and say "I want to do a workout", the $9.00 per hour shmoo on the other side will have no idea what you are talking about
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When you go thru debt modification programs they are nothing but trouble. When they negotaite the differnce between what you owe them and what they negoraite with you. You will get a 1099 back and have to claim what they wrote off on your taxes. These programs to me are nothing but trouble. I have heard alot of horror stories about these programs.Originally posted by LaidOff53 View Post
Let me ask you why, if you qualify for a chapter 7 or 13, why would you not go for that and try to wipe out your debt?Comment
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Thanks jesse & HHM
i was just looking for a way to keep what we have and not have to go through the whole bankruptcy thing , here is our situation in a nutshell :
Husband got laid off 4 months ago ( after 24 yrs ) makes 539 per week unemployment
I work but dont make much ( 25 thou per yr )
we have :
house & additional lot on same deed worth approx 150,000 & we owe 127,000 on it
we owe approx 50,000 CC debt
we own 2 vehicles free & clear , 2001 GMC pickup & 2001 Dodge neon
We are current on Mortgage & CC's ( never been late on any ) while we can pay everything for now i know that the unemployment we end and there are very few jobs in our area and what few there are will pay my husband half of what he was making , basically we are using all the money that we get per month to pay for the the mortgage & CC's & living expenses, There is nothing left and lord forbid if one of the cars break down !! We pass the means test but i am worried that the Trustee or Judge will say that we cant affors our 920 per month mortgage payment and we will lose the house , Plus there is an issue with the extra lot ( thats our back yard ) its on the same deed as the house but 2 seperate parcel numbers so im worried that they will take it and sell it even though there is no access to it so it cant be developed . but again its all a gamble on what the tustee & Judge will allow us to keep and that scares the heck out of me . we need the cars - we need the house - and if we go chapter 7 our credit is gone so where will we live on just my income alone and bad credit ? At 53 we dont have the 7 years for the credit to be good again to buy another house so we would be in limbo . i guess i was looking for a way to guarantee we could keep our house & backyard lol...and our cars .Comment
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