smallest amount they will sue for

[no_it_all]

Since your debt is 41% of your annual income, for what it's worth, that's enough to file on in my opinion.

Since there isn't a credit card company in the world that will refuse a 2 percent per month payment on the unpaid balance, to service this debt is actually less than 10 percent of annual income...Not 41 percent ...You can still suggest BK, but that would be <very questionable advice> *shrugs*..

[lrprn]

Since there isn't a credit card company in the world that will refuse a 2 percent per month payment on the unpaid balance, to service this debt is actually less than 10 percent of annual income...Not 41 percent ...You can still suggest BK, but that would be <very questionable advice> *shrugs*..

There are many credit card companies in the world that will not only refuse a 2% a month payment, they will first jump the APR to 30%, harass the debtor for 4-6 months, and then top it off by sending the account to collections for more months of harassment that could eventually end up in court with wage garnishments, etc. How do I know? Personal experience.

And actually I didn't suggest that madmac should file bankruptcy. I simply said that under the circumstances that he shared that it made sense to me. Read what madmac said again:

"...it was suggusted 7000 isn't worth it for bankruptcy. i only make 17000 a year and someone suggested i get a full time job, but I do have a full time job."

If he can't afford to pay the debt and is already working as much as he thinks he can, how does filing to stop an ever-upward spiraling amount of debt that the poster doesn't see any way to pay *not* make sense? To me filing is preferable to going through years of collection agencies harassing you with the potential for wage garnishment, having to deal with sub-prime lenders every time he needs a car, and poor credit ratings when he may be job hunting, looking for housing, etc.

Frankly since neither of us are lawyers, neither of us can offer more than an opinion one way or the other anyway. It's up to madmac and a real bk lawyer to decide what's best under his unique circumstances. So let's agree to disagree, shake hands, and get back to helping where we can.

[no_it_all]

There are many credit card companies in the world that will not only refuse a 2% a month payment, they will first jump the APR to 30%, harass the debtor for 4-6 months, and then top it off by sending the account to collections for more months of harassment that could eventually end up in court with wage garnishments, etc. How do I know? Personal experience.

Ok, lets start at the beginning...Don't be defensive, learning can be fun. You stated that the original poster had $7,000 in debt and it was a whopping 41 percent of his annual income, and "that's enough to file on in my opinion". You are certainly entitled to your opinion. Since everyone with a mortgage has debts about 200 percent of their annual income, is it your opinion that they should file BK also? Obviously not. Ok, so now, most reasonable people will agree that the relationship (or ratio) of total debt to annual income is not a very good data point for evaluating a potential BK. Apparently you agree also, at least if we go by your second post where you finally bring up monthly debt to income ratios. Not exactly sure why you did that, since everyone here knows about those and the only one that doesn't use them and instead relies on total debt to annual income ratios is ah, you! (41 percent, remember?)

You didn't really fool anyone, and it would have been more professional just to admit you messed up..we all do it!

Again I tried to help the poster by suggesting that he offer 2 percent on the unpaid balance per month and not go BK. Your reply suggesting that most credit card companies would not accept that is of course, also incorrect. It just so happens that prior to 2005, most every credit card payment was 2 percent of the unpaid balance, until Congress <suggested> they raise it to 4 percent. You also mentioned the collection activity that would ensue, which I don't understand since he would be making monthly payments as agreed. Weird huh?

You also mentioned the 30 percent APR. So??? The APR of a credit card has nothing to do with the monthly payment, but you already know that right? The only thing it does is stretch the payments out longer, but it doesn't CHANGE them! Usually after about six months of timely payments, he would be able to get them back to a reasonable rate.

Again, his payments would be UNDER $140.00 per month, less than 10 percent of his income (forget about that 41 percent nonsense) and he would still have his silver bullet BK to use years from now for something substantial.

You know, saying oops I made a mistake is ok!!! peace NIA

[lrprn]

No it all, how many people do you know well that make $17,000 a year? I do know a few - they are in my family. To find affordable housing, maintain a car to get to work, and pay bottom-line living expenses on $17K a year is a daily challenge. All it takes is one set-back - a medical bill, car repair, a job loss, even a small reduction in regular income - to push you down under financially to the point you can never climb out of the hole. To me, owing $7K when you make $17K is a lot different than owing $30K when making $75K. I wouldn't recommend filing in the second situation, but I still believe that filing when you have no financial safety net at $17K makes sense *IF* that's what madmac and a good bk lawyer thinks is the best option in his case.

And, by the way, if you carry over a part of your credit card balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year. It depends on what methods a credit card uses to calculate the monthly payment and what other fees may be associated with keeping a balance month to month or the fees assessed when paying late. See http://www.federalreserve.gov/Pubs/shop/

I've already said that we have a difference of opinion here, likely due to our different perceptions of what living on $17K a year means while trying to pay off a debt that is the majority of a borderline subsistence income. When I'm wrong, I've said so before in other postings, so I am trainable . However, in this case, I again politely request that we agree to disagree and move on. I have.

[no_it_all]

However, in this case, I again politely request that we agree to disagree and move on. I have.

Agreed...

[mike2006]

some question about not settle the debt..

hi,

if i don' settle the debt with cc and some collection agencies, other than garnish mine pay, what else can they do?

i heard they can close all mine bank account and empty mine account, is it true?

how about stocks, can they take away all mine penny stocks too?

i don't have a property yet so file bk chapter 13 should be the good choice for me is it ? the only problem is credit will be screw up for 5 year right?


thanks


mike

[HHM]

hi,

if i don' settle the debt with cc and some collection agencies, other than garnish mine pay, what else can they do?

i heard they can close all mine bank account and empty mine account, is it true?

how about stocks, can they take away all mine penny stocks too?

i don't have a property yet so file bk chapter 13 should be the good choice for me is it ? the only problem is credit will be screw up for 5 year right?


thanks
mike

Assuming they sue you and get a judgment, then yes, they could conceivably
1. Garnish your wages (in most states they can only garnish up to 25%)
2. The can't close your bank accounts, but they can force the bank to turnover any funds held in that account...note, if the money in your bank account is directly traceable as wages (i.e. all the deposits are from paychecks), some state wage exemption laws allow you to exempt that money up to the exemption amount.
3. Legally, they could take the penny stocks, but unless their worth anything, they won't. And short of them asking you about it, they won't find out you have them.
4. If at all possible, chapter 7 is the way to go.

If your already behind on payments, don't bother with debt settlement, your credit is already dinged.

[mike2006]

hi hmm, thanks


after i file bk, if it success, what will happen to mine ilfe after this? can i still open new act,have a new credit file ?