What To Say Or Not To Say, Tis The Question?

[flyinbroke]

I got one Xmas eve, but was at friends' house. None on Christmas. One this morning; GE Money has started again, as the 30th approaches (was supposed to call them and reiterate their plan. Wanna take bets they forgot about it?)

[maxwellv8670]

No I wouldn't take a bet! Citi has called me as well. I answered but it was an automated call. I am on the verge of a nervous breakdown.

[JustFileSuit]

maxwellv8670;362432]

So my next question is this, if I take an offer in the next couple of months and decide not to file bankruptcy what happens if I default on what I agree with? Will this mean I have to stick by what I agree and won't be able to file bankruptcy?

Thanks again for any advice.

I would deep down like to be able to pay these 3 credit cards vs. filing bankruptcy but I don't know if I will be able to? I am so confused.

[/QUOTE] If you have a number of credit cards then your ability to form part-payment settlements on those cards diminishes. You are "probably" better off filing for bankruptcy, simply because if one creditor refuses to settle with you for a discount then you are going to be unable to make it work out - you will run out of cash. It is a numbers game. Personally, you start with the creditors by stating that you have lost your job and your meager revenues (unspecified and do not discuss it) are not going to be enough to allow you to discharge for full value, so you start with your "offer," which I would set at a hair above what they can sell the debt for. At this point, your wholesale value in the JDB marketplace is probably at 20 cents. Offering 30 cents is generous. Then, after you make the offer for the principal and it is accepted, then you start negotiations on the payment plan. And if they don't like it, then their only realistic alternative is to realize the write-down and sell it to the wholesalers. NOTE, however, that your chances of success in this are vastly better if you can offer a lump-sum payment, as there is nothing more appetizing than cash. But since you don't have any cash, that is not a realistic idea any more.

If you default on what you agree with then, at their option, they are also not bound by the agreement, and your write-down of principal (if there was one) disappears. HOWEVER, you are NOT barred from any statutory ability to file with the BK Court. that is your legal right, handed you by Congress. And nobody can take it away (except a bankruptcy judge, on a finding of BK abuse only).

You can ALWAYS file for bankruptcy protection. ALWAYS. The creditors cannot control that.

If you are not unclear (and you cannot get clear advice from a local atty) then come on back to the Forum and we will see what we can do to clarify. that is why we have the Forum!

[JustFileSuit]

Also if the CC people sue me how is that to their advantage if I file BK? Can I not file BK if they sue?

You can always file. It is a Statutory Right. I know of people who file after their house mortgage has gone to Judgment, and been sold, and literally the hours before the sheriff arrives (nothing he can do - you have automatic stay). And if you file before the Appeal Period on a Judgment runs, then your judgment can go out the window

the reason these bottom-feeders are quick to file suit is that the average Joe has no clue as to how the court system protocols work, so the feeders just roll over you and get a Default Judgment or a Summary Judgment and then they can go grab. You can stop them cold by simply filing for BK protection; they are instantly stopped. This is called the Automatic Stay, under 11 USC 362(a). At that point the BK Court becomes the Court of Original Jurisdiction, and creditors have to file a Proof of Claim )to which you can object and challenge) and then they get paid (maybe) from the surplus assets, after the exemptions, from your bankruptcy estate. So now you knw why they are so eager to get in ahead of all the other creditors; unsecured creditors typically get pennies if anything at all in a BK situation.

Lawsuits are an empty threat if you are savvy. They are devastating if you have no clue and do not ask.

[JustFileSuit]

No I wouldn't take a bet! Citi has called me as well. I answered but it was an automated call. I am on the verge of a nervous breakdown.

No need to be. It is Citi that should be on the verge of a nervous breakdown! that outfit is hopelessly insolvent.

relax; there is not much that the unsecured creditors can do about it. Offer them 25 cents on the dollar to settle the debt. Should be interesting.

[flyinbroke]

Oh I don't think they forgot that I haven't paid...but I bet they forgot the deal they were willing to cut me. We shall see. I may just call and say that insurance is due and I don't have the cash to pay their deal lol. However if they settle to make me go away....