Debt called What to do

[theBorrower]

The bank called in my debt. Letter states a payment plan for 48 months. Impossible for me to pay. Called portfolio manager and she asked me what I can pay. Also in conversation a mention of interest increase, but started to give me doubletalk. Im afraid if I give them a smaller amount that I can pay, they will pull something else. Or I wont be able to make a future payment.
If Im looking to file in 3-4 months, why should I still consider bargaining w/them?
My debt to earnings is 150%. A bottom soon to be.

[relief13035]

If you are planning to file soon - stop paying.

[lrprn]

The bank called in my debt. Letter states a payment plan for 48 months. Impossible for me to pay.

What is the debt? Is it for a secured asset? If it is for an asset, do you hope to keep the asset after you file?

[theBorrower]

Unsecured business line of credit w/auto withdrawal on checking account which will happen next Thurs, approx $1000 debit. I need to make a decision of whether to close the account to avoid bank overdraft charges or call and "make a deal". I have a CC maxed out, w/interest doubling. Business hanging by a shoestring.
Inevitable default. Im starting to call for attorney consultations.

Hard to put this in writing.

[lrprn]

Hard to put this in writing.

You are at one of the very hardest markers along this journey - admitting to yourself and to others you are in debt beyond your ability to get out of it in a reasonable time frame. We've all been there and we feel your pain.

The good news is that admitting your financial reality is often the worst of this battle. Now you can move ahead and do what's necessary to find the best route out of this endless hole.

It doesn't feel that way right now, but better times are ahead for you....I promise.

[EricaCallaha]

Close your checking account immediately. Stop paying immediately. You have no way to pay this back and you are going to file. It would be like flushing $1K down the toilet. Beware that they may not close your account. Don't worry about it. Chase would not close our account as we had a credit card with them. They never overdrew the account to make payment. They knew that we were filing and just made a claim in our 13.

Interview many lawyers. Find one that is a good fit for you. Start gathering your numbers so you can make the most of your consultation.

Good luck. The first step is the hardest.

[StartingOver08]

Some of the banks will overdraft your account - BOA is notorius for that!

Quick, close your account. If the overdraft comes in you will have proof you closed the account prior - make an effort to cancel the automatic payment so you have a record of it.

I don't know your bank - but BOA is known for overdrafting accounts in these type of situations.

[theBorrower]

Ive spent hours on this forum. The consensus says to stop paying. However, the bank loan manager's last question "was how much can you pay?" The most I can pay is $275 out of $1000. I feel I need to make some willingness, whether she rejects it or not. I can buy time paying the min. CC and bank loan. Time is what I need now to gather paperwork, consultations and filling out 6yrs of tax returns.
But, my gut feeling is I dont trust them. And any agreement I make, may be turned against me.

[OhioFiler]

Ive spent hours on this forum. The consensus says to stop paying. However, the bank loan manager's last question "was how much can you pay?" The most I can pay is $275 out of $1000. I feel I need to make some willingness, whether she rejects it or not. I can buy time paying the min. CC and bank loan. Time is what I need now to gather paperwork, consultations and filling out 6yrs of tax returns.
But, my gut feeling is I dont trust them. And any agreement I make, may be turned against me.

They have no interest in helping you. The only thing they are doing is trying to collect by whatever means they can. Don't send them a dime.

[StartingOver08]

They have no interest in helping you. The only thing they are doing is trying to collect by whatever means they can. Don't send them a dime.

This is right. You can buy time by not paying too. Even if a creditor were to 'rush' to court, there is so many clogging the system it is months and months before anything can happen. Don't throw away $$$$ by paying your creditors that you are letting go in the BK.

[EricaCallaha]

I agree. Stop paying and start getting your paperwork together. You can use the money that you would be throwing at the cc's to getting a good attorney and filing fees. StartingOver is right. It is going to take months for them to even get you into court. They are so backlogged right now that you can take the time to file a bk correctly.

Good luck.

[theBorrower]

Maybe I should listen to people who have gone thru this, instead of my friend who suggested I take this loan out to begin with.
I figured even if I could pay $500/mo (half), it would take over 10yrs. I doubt they would even consider even this amount, let alone $275.
I feel alittle more confident w/your input and will close the account.
I want a happy dance someday.

[OhioFiler]

Maybe I should listen to people who have gone thru this, instead of my friend who suggested I take this loan out to begin with.
I figured even if I could pay $500/mo (half), it would take over 10yrs. I doubt they would even consider even this amount, let alone $275.
I feel alittle more confident w/your input and will close the account.
I want a happy dance someday.

Erica is the only one with a "Happy Dance". Everyone else gets a "Hamster Dance."

[EricaCallaha]

Only because I am allergic to hamsters. I haven't seen the hamster dance. I'll go with dancing like an idiot.

[theBorrower]

Tonite, Dateline had a report on the CC industry and collection tactics Part2. He somewhat said they (2nd tier collections) use mob tactics.

Sounds like he's never been to S. Philly.