Debt relief of BK?

[Nofilb]

Hi all!

My wife and I owe about $57K for credit card and personal loans (no student loans, vehicle loans). We are working with a debt relief agency in an effort to settle and stopped paying on the cards at the agency's advice about 5 months ago. We don't seem to be getting anywhere with the debt relief agency. The phones never stop ringing and now we are getting letters from collection agencies. The good news is I'm current on my mortgage payments.

I'm starting to think chap 13 is looking more and more like an option because I just want to get this started to get it over!

Any advice?

[tobee43]

welcome to the forum Nofilb.

it may be worth your while to set up a few if not more free consults with some bk atty's in your area. they can better help you assess whether you're 13 material or possibly chapter 7.

we know the collection calls can be so troubling and so annoying! unfortunately, they will continue until you either settle with them or actually file and have a docket number.

best of luck and keep your questions coming, there are many here to help with support and answers to your questions!

[karm43]

Debt relief is not a guarantee and you have to pay taxes on what you save, they will tell you there is a certain form to exempt them but you have to be in certain money guide lines. Don't let them fool you. The calls will never stop and you still can be sued they cannot protect you. Then there is there 15 percent charge. These people only want your money! RUN

[tobee43]

Debt relief is not a guarantee and you have to pay taxes on what you save, they will tell you there is a certain form to exempt them but you have to be in certain money guide lines. Don't let them fool you. The calls will never stop and you still can be sued they cannot protect you. Then there is there 15 percent charge. These people only want your money! RUN

one does not have to pay taxes on any amount that is agreed upon if you accept a settlement offer. they may send you a 1099C however, if you can prove you were insolvent it's not a tax problem.

you're right the calls will never stop until you either pay them or file for bk.

[AngelinaCat]

Hi Nofilb: Welcome to the forum. I moved your post from the 'BK and Credit News board, where you had put it, into the 'General Bankruptcy Talk' board, where it is more appropriate as you and your wife are in the early planning stages.

Schedule three or four consults with different bk attorneys, usually these are frees, and see what they recommend. I think you are throwing your money away trying to go through a 'debt relief' firm.

What I have learned in reading about these folks, indicates that many of them are little better than 'scammsters' out to separate you from your money, while doing nothing to repay your actual debt. Many people try everything they can, trying to avoid filing bankruptcy, including cashing in Retirement funds--which are exempt--debt relief agencies, etc., only to end of filing for bankruptcy after all. A common refrain from many of the members here is: "I wish I had filed sooner."

Good wishes to you and family!

[Nofilb]

Thanks all! We'll talk to a few BK attorneys and go from there. Although I made the mistake with ccards, ccard compaies kept raising my interest rate to where I was not gaining ground. I was paying so much money per month and just making the minimum payments. That will get you no where and the ccard companies would not work with me. Thanks again!

[tobee43]

Thanks all! We'll talk to a few BK attorneys and go from there. Although I made the mistake with ccards, ccard compaies kept raising my interest rate to where I was not gaining ground. I was paying so much money per month and just making the minimum payments. That will get you no where and the ccard companies would not work with me. Thanks again!

well just to let you know,you were in excellent company. the cc companies raised the rates and dropped lines on even their BEST customers. i really don't know anyone that was excluded that i personally know, although maybe someone wasn't affected. by doing what they did, they drove people into the ground, i know for us what was a i.e. $50 payment turned into a $200 and our income dropped 50%, not really, but you get the point. they did this to so many people it drove many down the tubes.