CC Counseling Service instead of bankrupty?

[TheBajan]

I don't have anything new to add but I certainly want to say ditto to the advice you are getting. Very seldom will you come across someone that actually wanted to file BK. Most of us have tried everything and drained everything before filing and I can personally say I wish I had filed a lot sooner. I do understand the emotional struggle but if you are here it's because you are at least at a point you recognize BK may be an option. Read the stickies, read the stories, and go get your fresh start. You will find yourself among friends here. There are no judges. We've all been exactly where you are.

Welcome to the forum!
The Bajan

[Wowzers]

Thank you all for the candid feedback. BK does in fact sound like the wisest option in terms of a clean slate. I am a slow learner and honestly it's so early in the game I'm still in shock how the debt crept up on me. One day I did the calculations on what it would cost to pay them off at just above minimum and the floor dropped out from under me along with my jaw.

We'd be fine were it not for poor health insurance and very high deductibles. I've probably paid close to $20k in deductibles in the past four years for my family. Plus my brother got seriously injured a year ago and I spent a lot of money traveling and trying to rebuild his life. Then two months ago one of my children got injured in a freak accident. That was $2,500 right there, and now she needs orthodonics ($2,700 for phase one).

For more than 14 years before that I had two American Express cards I paid off, in full, every month. My credit was excellent. We did not abuse our credit. Our TV is only 27" and the last gadget I got was a smartphone two years ago. When I realize that the CC companies could care less about who we are or why it happened, it does help make the BK pill a little easier to swallow.

We still rent and I'm really worried about having to move and get another place. I suppose I could use my landlord as a referral since we never are late there. These concerns, and the fact that I need to find a way to avoid this happening again, make for light sleep as I'm sure many of you know well. I can't even look at the numbers without first downing a healthy dose of liquid courage.

[mwr1ght2002]

I consulted Greenpath! They are vampires!! They only wanted to leave me with $50 disposable cash each month! And they only really work for unsecured debt. No money for a emergency fund of any kind really! Plus their fee of 40/ month! They are mostly funded through the credit card companies! It was not for me and my situation! Best of luck to anyone that goes that route~~

[Freddy03]

We joined CCCS years before we filed Ch 7. It hurt our credit a lot because they weren't paying the cards on time. And my payments were just as much as the CC's payment prior. I do not recommend CCCS!! We ended up paying them off when we refinanced the house (another stupid move) which ultimately lead to us filing Ch.7.

If you qualify for Ch 7 just file and get it over with. Don't drag it out.

Good Luck!

[BKAttyMI]

Ditto all that has been said here. The big mistake I see most clients making is considering their lenders as "people". They aren't people. They don't care what happened or why you can't make a payment this month. I can't count how many times I've heard, "we don't want to file bankruptcy against so and so, they've been so nice to us". Yes, of course they're nice to you if you're willing to keep sending them payments! They know you're on the verge of bankruptcy! They want to milk you for all you're worth while they still have you in their grasp! Don't get me started on "debt settlement companies" either, yikes. File a bankruptcy case and move on, you'll be glad you did.

[tobee43]

one needs to remember that all these places that claim they can help reduce your debt and make you nice budget you send them monthly and they will pay all your bills is doing nothing other than ripping you off. first, most always, the payments you are making are delinquent and that's exactly how they are showing up on your credit report whether they have sworn to you or not they work with boa, chase, citi, wells...all of them no way does it work like that.

they make you think they have contacted the creditor reduced your balance and turned your $300 payment into a $50 payment you can now afford, but they forget to tell you, the creditors still report you as late and it does nothing other than hurt you more...PLUS now you have paid them a fee on top of all the payment you THOUGHT was paying down your principal debt which it wasn't since the creditor most likely has continued to add fees and late charges. those charges continue to be reported month after month to the reporting agencies for your credit and if you have paid them for a few years you credit is gone every time they send in another payment for you. it just perpetuates your low scores and never digging out of that deep dark hole.

this idea was big back in the early 90's when there really were some agencies that helped people with there debt. but those have long been gone. don't delay the inevitable, save yourself pain and money and just file bk...because the sooner you do, the quicker you can really get a TRUE new start for yourself and family.

best of luck to you!

[catlfuzzy]

I explored that option very briefly. They told me I would basically need to DOUBLE my income in order to make their minimum payment.

Their process also hits your credit hard; CCCS wasn't a viable option for me.

[Slingerland]

I know this is bucking the trend, but earlier this year I was able to work with my local CCCS office and get my out-of-control debt spiral under control. In my case, I wasn't very far behind in CC payments (just 30s) so my credit was already shot but not badly. The local CCCS was able to negotiate reduced rates (6%) and a 60 month payment I can afford. After three months on-time, the CCs re-aged the accounts and everything on my credit is reporting "OK".

A C-13 would have been cleaner, but my wife was adamant against me filing solo. During an attorney consult she refused to provide him some info he needed... her body language was openly hostile... at which point he told me bluntly that a C-13 would be a waste of time unless my wife cooperated.

So my last option was using CCCS. And so far it's working. That is... assuming my wife doesn't screw me over again with her hyper-spending and assuming my rental hosues don't need any major repairs.