What can they do to me?

[doron]

Thanks for all the words of wisdom.

I'm over the deadline, so...

I panicked a bit over them coming here so I changed my adress on several CCs to a mailbox I rent. Now I wonder if that's legal..or wise...

I don't answer the phone anyway, and I've stopped using it altogether - switched to skype.

I don't have money for a lawyer. I have a little freelance job, I'm self employed. If I'm lucky, I'll make rent next month. I also keep paying health insurance.

Yesterday I got a scary letter from the IRS - pay everything you owe now!. But I called them and they were very nice, and, no, you can pay as little as $25/month. I had set up a payment plan but it didn't go through before the letter was sent out.

Oddly, I got an e-mail for the big CC before I was late reminding me to pay. I've never got an e-mail like that before.

[doron]

car

I looked at the car site. I guess the 'clean retail' is the correct heading. It's still over 3,000. They don't take into account a torn seat and other stuff.

When you say 'almost exempt' do you mean you can pay for the difference?

[shark66]

"Clean retail" is NOT the correct heading. For BK purposes, you'd be looking at "clean trade in" since you wouldn't be selling the car to an end user at a dealership...

[doron]

Oh. Clean trade in is just a teeny bit above $3,000. Since it's not in perfect shape it's gotta be a few hundred dollars less, so under the 3,000. Which I think is what's allowed.

[doron]

I just googled (finally got the nerve, LOL) and straight away found an attorney who I know will be the right one. I'll call on Monday to see how much this will cost.

[music12]

it's perfectly legal to change your address to a mailbox, but it does not erase their record of your home address. anyway, don't worry about anybody coming over!

[doron]

Thank you!
That's good to know.

Man, the stress of this, it's sort of funny....OMG they're coming to get me, LOL. I'm laughing at myself..

[carlsbadmike]

Doron,
I started out the process thinking I should file right after I had paid my CC's and intended not to pay them anymore. At the advice of my attorney I waited several months to file and was told by attorney that this was the norm. I thought I was doing the right thing by being proactive until she told me this. I did have to report any creditors that I had paid more than $600 to in the last 3 months-even the IRS so you might want to keep this in mind. I too was self employed and my attorney will be winding down my failed business for me during the process of my personal BK filing. I have to claim the office equipment that the business owned when I filed because it was the only asset. If I choose to I will be able to buy the equipment back and use the money to pay business creditors-which is what I'm going to do. The feeling sick thing is common for a lot of people going through this. I have my 341 meeting in 2 days and look forward to that being over with. My discharge should come some time in September and then I'll feel like I can start over.
Best of luck to you.

[sac42375]

So how did it go? Did you end up filing Chapter 7? I know you mentioned earlier about using credit card counseling. I personally think they are a total rif off. It has been a year since we started the process of filing and stopped paying our cards. They call pretty often. I dont necessarily stop the calls because I want to know whant to find out how low the collections agencies would be willing to go if we decided to just settle. I have gotten several of them to agree to an offer 0f 10% on what owed. I think I could have pushed for less but I already knew we were planning to file and just wanted to see what I could do if we had too. So dont go off and pay some debt solution company $6,000 (that is one price I got, they are so not upfront about telling you that) You do not need to pay them to settle with these collection companies. You yourself can do it very easily. The debt solutions guys do not have hook ups or connections to get these great low interest rates and tacked on accrued fees reduced. Such BS... Just call up one of them, particularly one sending you a lot of lawyer type looking collection papers. Tell them you are looking into filing BK and wanted to see if there was a chance you could avoid that and wanted to know if they would settle and accept 800 on a 5000 card. Mine did. Always use a way low ball amount. One guys kept telling me no, no, no, there is no possible way my boss will let me accept that... I said okay, thanks anyways see you in the BK. Instantly he said yes. I of course declined, I am only scoping out my options if my BK gets discharged.. Anyways, my point is wait till your cards start getting aggressive, threatening to sue etc... Most just sell the debt to a collection agent for pennies on the dollar (thats why collection companies will take sooo little on the debt) and then the CC just write it off. as a loss and get a nice little tax credit. The collection company got the debt for pennies on the dollar and thats why they are soo inclined to settle for as little as 800 on a original 475 on a 5000 credit card debt. Dont pay someone $6,000-$10,000 to do this for you!!!! they incorprate their fee into their arranged payment plan with the CC. Something they only have the means to arrange, so NOT true!! Sorry about the little rant, I was just almost talked into one of these programs and then after doing some research realized I was going to pay them $6,000 for making some phone calls. They do not have any type of special relations, or business arrangements with these CC companys. Call them yourself and make arrangements, period. Thats of course if BK doesnt work out..

[2manybills]

So how did it go? Did you end up filing Chapter 7? I know you mentioned earlier about using credit card counseling. I personally think they are a total rif off. It has been a year since we started the process of filing and stopped paying our cards. They call pretty often. I dont necessarily stop the calls because I want to know whant to find out how low the collections agencies would be willing to go if we decided to just settle. I have gotten several of them to agree to an offer 0f 10% on what owed. I think I could have pushed for less but I already knew we were planning to file and just wanted to see what I could do if we had too. So dont go off and pay some debt solution company $6,000 (that is one price I got, they are so not upfront about telling you that) You do not need to pay them to settle with these collection companies. You yourself can do it very easily. The debt solutions guys do not have hook ups or connections to get these great low interest rates and tacked on accrued fees reduced. Such BS... Just call up one of them, particularly one sending you a lot of lawyer type looking collection papers. Tell them you are looking into filing BK and wanted to see if there was a chance you could avoid that and wanted to know if they would settle and accept 800 on a 5000 card. Mine did. Always use a way low ball amount. One guys kept telling me no, no, no, there is no possible way my boss will let me accept that... I said okay, thanks anyways see you in the BK. Instantly he said yes. I of course declined, I am only scoping out my options if my BK gets discharged.. Anyways, my point is wait till your cards start getting aggressive, threatening to sue etc... Most just sell the debt to a collection agent for pennies on the dollar (thats why collection companies will take sooo little on the debt) and then the CC just write it off. as a loss and get a nice little tax credit. The collection company got the debt for pennies on the dollar and thats why they are soo inclined to settle for as little as 800 on a original 475 on a 5000 credit card debt. Dont pay someone $6,000-$10,000 to do this for you!!!! they incorprate their fee into their arranged payment plan with the CC. Something they only have the means to arrange, so NOT true!! Sorry about the little rant, I was just almost talked into one of these programs and then after doing some research realized I was going to pay them $6,000 for making some phone calls. They do not have any type of special relations, or business arrangements with these CC companys. Call them yourself and make arrangements, period. Thats of course if BK doesnt work out..

Many of the debt relief agencies are a rip off. First of all they don't do anything for you that you can't do for yourself. I ended up getting my friend's money back because they did nothing to help. We filed over a year ago and have been discharged for 7 months now. The thought of dealing with this for year or two, would be really crazy to me. In my opinion, it was better to file and move on with your fresh start.

[doron]

What I'm doing now is trying to borrow enough money for the lawyer and fees. I discovered this forum 2 months too late - had I stopped paying the CCs 2 months earlier, I would have filed by now.

In the meantime I'm trying to eek out a living, enough to pay rent and bills. Disconnected my land line. No cell. No TV. Lowered my health insurance to some ridiculous minimum premium, meaning I could never afford even one doctor's visit. Seems easier than reapplying, though, since I have some health problem, which i can't afford to take care of, but would deny me insurance.

Got a cavity I can't fill.

Can't even look for a job (not that I would necessarily find one, but can't look) because it would put me over the means test but wouldn't pay enough to get me out of this situation.

[hatiebo]

I feel so much better after reading all of the comments on this thread. I know it is what we need to do - but need time to get organized. My husband hasn't worked in over a year (construction) and used to have a big company - for 30+ years. SO sad - all we wanted to do was work and get ahead, and now we are crying about not being able to pay our credit cards. And like many above, we tried calling and trying to work things out with them...lol. I have a company (s-corp) - does anyone know if that will be affected? It is important I keep that separate. The company is doing fine, but just can't pay me much. I passed the means test - if I filled it out properly! Thank-you all so much for being here.

[sac42375]

Sooo True!!

[blockhead]

I feel so much better after reading all of the comments on this thread. I know it is what we need to do - but need time to get organized. My husband hasn't worked in over a year (construction) and used to have a big company - for 30+ years. SO sad - all we wanted to do was work and get ahead, and now we are crying about not being able to pay our credit cards. And like many above, we tried calling and trying to work things out with them...lol. I have a company (s-corp) - does anyone know if that will be affected? It is important I keep that separate. The company is doing fine, but just can't pay me much. I passed the means test - if I filled it out properly! Thank-you all so much for being here.

Re S-corp they will want a profit and loss and balance sheet for it, tax returns too. It is a separate legal entity, but the BK estate will own your shares in it.

[2manybills]

Re S-corp they will want a profit and loss and balance sheet for it, tax returns too. It is a separate legal entity, but the BK estate will own your shares in it.

Are you including corporate debt? If you are not, I'm not sure if it needs to be listed.