How long before they take me to court?

[nsupanda]

I have two options: file chapter 13 or figure out a different option... well, my different option is paying my creditors back in full but it's going to take me 5 years to do it.

My plan is this:

I make a monthly deposit into my savings account each month. I pay off my debts one-by-one as the balance in my savings gains enough to cover each one. This means that one debt is paid off, while the others are not getting paid at all over several months time. Basically, it's the same as if I would be working with a debt settlement company only I will be doing my own debt settlement. I figure that (worst case scenario, none of my creditors settle with me) it will take about 5 years to pay off EVERYTHING. Now, of course some will be paid off before then as my savings account allows... but you see what I'm doing?

I've never ever had one collection call in my life. I've been current on everything, I'm just at the point where I cannot make my monthly payments now.

Therefore, I would like advice from those of you who DO receive these calls. My most ultimate fear is to be taken to court and them garnishing my wages. Someone once told me that as long as I talk to the collectors (don't hang up) and promise to pay eventually that they won't take me to court. Any other advice is certainly welcomed.

Also, if you think my plan is stupid and that I should just file Chapter 13, please say that too... I'm weighing all my options here.

Thanks!

[tigergem]

Either way, your credit is going to be trashed and you are committing yourself to a three to five year plan. Your own private way, yes you could be sued and nothing will stop the calls or protect you from suit. So my question to you would be why NOT file Ch 13? From what I hear 7 is better, but that depends on your circumstances. I wish I could have filed a 7 but that would have upset my personal apple cart.

[nsupanda]

Also, what if I were to pay each creditor say, $10 a month in the meantime? Do you think that would possibly stop legal action?

[nsupanda]

Either way, your credit is going to be trashed and you are committing yourself to a three to five year plan. Your own private way, yes you could be sued and nothing will stop the calls or protect you from suit. So my question to you would be why NOT file Ch 13? From what I hear 7 is better, but that depends on your circumstances. I wish I could have filed a 7 but that would have upset my personal apple cart.

I don't qualify for Ch. 7. And I would have already been said and done with Ch. 13 if it weren't for my husband. He refuses to go see an attorney with me. He thinks bankruptcy is basically welfare and he is against it 100%... believe me, I can't do anything to change his mind.

I know I can file Ch. 13 without him, but what's the use? All of our debts are joint so he'd have to pay it all back anyway so that wouldn't help our finances. And, by the way, divorce is not at all an option so don't even mention it. I don't really want to get into my personal relationship information.

I also realize that going with my own little plan here will severely ruin our credit, I just don't really care anymore to be honest with you.

[tigergem]

I don't know but I kinda doubt it. Besides, they will continue to add late fees and interest to those accounts, so you would be throwing good money after bad. In a Ch 13 every penny counts toward something.

[optimistic1]

what state do you live in?

[nsupanda]

what state do you live in?

Oklahoma

I'm pretty much stuck between a rock and a hard place, I do realize that... I'm not trying to be optimistic about things, I'm just trying to figure out any alternative to bankruptcy.

[catleg]

Your best bet is some middle ground. If you stop paying for some time, many of the creditors will try to get you back on track so you don't become a charge off. Some (but not all) will waive lates, give you 0% or low interest, whatever it takes. So you need to be alert to what the best deals are and jump on them.
Otherwise it will spiral out of control at default rates, late and overlimit charges. Then after 6 missed payments it will be charged off and moved to "recovery" (like in the earthquake when they quit looking for living souls). That's when they think about suing you , it all depends on your money situation as well as the cost of bringing suit.

Alternatively, it will help if you can save up enough money to pay off accounts around 50-60 cts on the dollar when they offer.