Stop Paying on them All?

[Txgirl]

So I was doing a conference call with an attorney. I have a set of loans that I am unable to pay on, my other debt is all current.

They are wanting me to stop paying my other credit cards, put what I was paying in a savings type account. Basically, so if and when it was time to settle we would have the cash. I am able to afford those bills. (We do live paycheck to paycheck) So it wouldn't be more cash throughout the month, since it would go into a savings.

I am not sure I am comfortable to just stop paying on credit cards that are current. I understand they can see what I am doing to one creditor by not paying and then raise interest rates and cut credit limits.

We are not preparing for BK...these are private student loans and can't be discharged.

What are your thoughts?

[StartingOver08]

Did you saying you are NOT preparing to file for BK?

Is your attorney a BK attorney? Is he trying to work out a settlement with creditors?

I am confused about your situation. Can you clarify a little?

[Txgirl]

No BK. My credit debt is not unmanageable. Can't file BK due to these being private student loans.

The attorney was a consumer attorney. I guess use their violations against them or try to work out a settlement.

[BkinTX]

If you cut out the cc debt, wouldn't that make the loans easier to pay?

[StartingOver08]

Work out a settlement against the cc debt or the private student loans or both?

[Txgirl]

If you cut out the cc debt, wouldn't that make the loans easier to pay?

What I pay in monthly credit cards, is not even half of what I need to pay for the private student loans.

Work out a settlement against the cc debt or the private student loans or both?

Well the cc are current, so I am sure they won't work out a settlement.

As far as the private student loans. They have told me not to pay my other debt and pay them. Not pay my mortgage and pay them. Not sure I can pay what they want me to pay.

[StartingOver08]

If you don't mind, can you post a little about your situation? Amounts of cc debt balances & payments and student loan debt and payments and income.

[CompTweaker]

No BK. My credit debt is not unmanageable. Can't file BK due to these being private student loans. The attorney was a consumer attorney. I guess use their violations against them or try to work out a settlement.

Were these private student loans backed by government loans? If not, just because they are private doesnt mean you cant BK on them. Federally backed loans from places such as sallie mae (cant think of all the names) are the ones you may not be able to BK on.

[BKINAZ]

Okay seriously...are the student loans a code name for the mob? lol

Please do what was suggested, how much do you own on CC's...student loans, house, (upside down?) how much disposible income do you have (if any) after house and student loan payments.

Thanks!

[treehugger1]

The student loans can't stop you from filing BK. However, they are not discharged. I would at least get the other debt discharged. Just an opinion. Why not keep paying your student loans and let the other unsecured debt go?