Ok. Please give me feedback on this thought

[Tangelwood]

I'm about 70G plus in CC debt . My state allows for 10% garnishment of gross and that's assuming that one of my 6 CC will even sue. I am making payments on two but they r really reasonable and I only did those ( discover, wells Fargo) cause they were on the verge of lawsuit.
A chap 13 with cost me about 800.00 month and a garnishment would cost me about 640.00. It's a gamble but if only half sue me I'll still be ahead of the game cause don't they fall off after 7 years?

[tigergem]

Chapter 13 will cost you $800/month for a defined finite period of time, not to exceed 60 months. However, irrespective of credit reporting limits, the garnishment @$640/mo could go on... and on... and on...until the debt is paid. Also, I believe judgment reporting is 10 years on credit reports. Not positive about that, but then you will also have how many of those? As well, after the first one garnishing gets his FULL judgment amount, I think the next judgment creditor can then step up to the plate and take theirs.

[BobMango]

The other consideration is that judgments don't "drop off" after 7 years, they're good for 10 years and can be renewed.

[tay666]

And don't forget that the whole time you are paying those judgements, they still accrue interest.

$800 a month, for 5 years works out to $48,000.
It is possible that your payment could be lower, if all your creditors don't file claims.

$640 a month for god knows how long could easily end up costing you over $100,000.

[Tangelwood]

I'm just trying to avert bankruptcy. I arrainged a pretty sweet deal with discover with no interest for next seven years and perhaps I should just call the rest and get it over with. Or should I just wait until someone sues and then offer a payment araingment?

[pepperoncini]

Why are you avoiding BK?

Judgemenst and such are terrible for your credit so you're not really ahead there if that's your reason...

[Tangelwood]

I filled exactly 20 years ago and I don't want the stigma of that again. I feel if I'm at least attempting to pay my obligations I won't do worse. I'm 42 years old and lost my home and job last august due to the lame economy. Imnow back on my feet again and if it takes seven years to dig out on my own then I figure I'll be ok. Just not excited about giving 3,000.00 to a lawyer either

[LoadedGuns]

I filled exactly 20 years ago and I don't want the stigma of that again. I feel if I'm at least attempting to pay my obligations I won't do worse. I'm 42 years old and lost my home and job last august due to the lame economy. Imnow back on my feet again and if it takes seven years to dig out on my own then I figure I'll be ok. Just not excited about giving 3,000.00 to a lawyer either

Guess again. You make any payments on a delinquent account you reset the credit clock.

If you lost your home, that a lot worst than filing bankruptcy in most peoples books.

[VirginiaGuy]

Whether they fall off of your credit report in 7 or 10 years is really irrelevant as to whether or not they can sue you. What you really need to be looking at is the statute of limitations in your state. The SOL starts running on an account once you stop paying, and after the SOL has expired, the creditor in question can't get a judgment against you, because if the creditor sues, you get an attorney who then files a motion to dismiss based on the fact that the SOL has expired, and the suit will be dismissed and cannot be brought again. The SOL in some states is very short, maybe as short as 3 years, so you may want to look into that.

Also, I don't think bankruptcy has the stigma that it did 20 years ago. I've found that in my situation, very few people have been judgmental and most have been supportive. I think that we're entering a more dynamic economy with lots of ups and downs and lots of risk taking that goes bad and people are more understanding nowadays. Just like it used to be more of a stigma to lose your home, but now foreclosures are a dime a dozen.

[catleg]

Discover gave you 7 years to pay off the balance at 0%! Wow, that's a new record. Chase gave me 5 years at 0% to liquidate one account. Problem is you'll never get those same terms from everyone. But that's a good deal for starters, compared to being sued and/or chapter 13. I would bide my time and if you get the opportunity then file a chapter 7.

[pepperoncini]

I agree with catleg...

[flyinbroke]

$800 a month, for 5 years works out to $48,000.
It is possible that your payment could be lower, if all your creditors don't file claims.

.

Not true. Your payment remains the same because they take all of your disposable income regardless, but the creditors who file proof of claim get more of it. You may get a shorter plan if you do wind up paying 100 percent.

[catleg]

You should also consider whether you can max out your 401k contributions and get that 800 down to something more reasonable. And/or 401k loans to pay down a student loan, something like that.

If they sue you, and force your hand, that is.

[HHM]

I think you are over estimating the stigma, it is not the same as it was 20 years ago. If you really want to have credit again, get out of debt in a predictable manner, and maximize your control over the situation, then chapter 13 is the best option. Also, unless you had an attorney do a full case analysis (not just a consult), your "estimate" of an $800 per month is probably off.

[lovemybugs10]

Can you settle with them?

Discover just took 40% in payment over 6 months. I'm hoping to do the same with the other two cc's when I'm done with discover.

I'm in the same boat as you- filing would be more $ and take a ton more time than settling.