New to all of this - a few questions

[emiss]

We stopped paying CCs in July, our minimums were over $800 a month, and after the birth of our second child and daycare expenses we don't even come close to making ends meet. My income only covers mortgage and daycare and my husband is self employed (read: hardly ever gets work), so there's just no money left. We're going to file BK but we have to wait until May because we're doing a home loan modification right now and it will become null and void if we file during our trial period.

Today I got the first call from an outside collector; the rest are still with the credit cards until the end of the month (this will be the end of the 6th month and most are saying that at the end of the month they'll move to the "next step"). The question is, a few of them are offering to let me pay as little as $10 a month for the next six months while I "get on my feet". I'm thinking that may keep them at bay until we file, but I don't know if there are downsides to that. Does it make those that work with me "preferential payments"? Are there any downsides that I'm not seeing? I don't have a major problem with letting them go to collections, except that right now we're getting around 15 calls a day from just the one that went, and I can't imagine that times our other 5 cards.

Any advice? (Sorry if this has already been asked...I looked everywhere and didn't see anything)

[flyinbroke]

We stopped paying CCs in July, our minimums were over $800 a month, and after the birth of our second child and daycare expenses we don't even come close to making ends meet. My income only covers mortgage and daycare and my husband is self employed (read: hardly ever gets work), so there's just no money left. We're going to file BK but we have to wait until May because we're doing a home loan modification right now and it will become null and void if we file during our trial period.

Today I got the first call from an outside collector; the rest are still with the credit cards until the end of the month (this will be the end of the 6th month and most are saying that at the end of the month they'll move to the "next step"). The question is, a few of them are offering to let me pay as little as $10 a month for the next six months while I "get on my feet". I'm thinking that may keep them at bay until we file, but I don't know if there are downsides to that. Does it make those that work with me "preferential payments"? Are there any downsides that I'm not seeing? I don't have a major problem with letting them go to collections, except that right now we're getting around 15 calls a day from just the one that went, and I can't imagine that times our other 5 cards.

Any advice? (Sorry if this has already been asked...I looked everywhere and didn't see anything)

I have had some of those "reduced payments" offered but when I asked for the companies to put something in writing they pretty much went bats*** crazy. After reading around the interwebz, I think I understand why; they don't want to commit to anything because they will still hit you with late fees (you are not paying minimums) and hound you for nonpayment because you are refusing to pay as agreed.

I have told them I had 9 bucks in my account and they still call 15X a day; however I learned in my state that it is illegal for even the OC to fake out the caller ID so this may come to a screeching halt once I take their calls.

[optimistic1]

My advice is to just wait it out, do not pay them anything, not even the minimums. Dont give the third party collector any information whatsoever. Simply wait for them to send you a dunning letter, then return the favor with a cease and desisit letter. Shut your ringer off, or change your phone number. Once your accounts age, then they will start putting settlement offers in writing, lump sum offers, not reduced payments.

Then when its time to hit the BK button, do it with pride and a cheesy smile, atleast until your 341, thats when you put your sad face on, lol.