Debt questions

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Debt questions

Postby dadmisseskids » Mon Jan 30, 2012 4:31 pm

I haven't paid any house, car or credit card payments since July 2010. I still can't believe they haven't taken my house but it's currently under a short sale. I don't care about the house anymore as I live in an apartment closer towards my work. They can have it.

I also owe my lawyer $7500 who is awesome, not only because she did great in court and I now have primary custody, but also because she is letting me pay $100/wk on that balance.

My car was repossessed and now VW wants $7,800. I've been evading calls.

One of my two credit cards is a military cards has a balance of $1500 on it and I have to pay that off. Supposedly it works the same way as a government loan.

I had an AMEX as well and that balance is $5000. They sent me letters demanding payment. I ignored. Then they sent me a 40% off coupon if I pay 60% of the $5000. I ignored. Now I just received a 60% off coupon if I pay 40% of the $5000.

If it wasn't for the VW debt, I'd probably do the 60% off thing with AMEX. My thought is that if I end up needing to declare bankruptcy (my total debt is listed in this thread and it's about $22,000 between these four things, minus the house), I've just wasted money paying off the AMEX debt.

I should get about $4000 back in taxes this year. Should I pay off the AMEX or just wait until the very end to see if I do end up filing bankruptcy?
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Re: Debt questions

Postby Fatheroffour » Mon Jan 30, 2012 4:35 pm

Maybe they're working up to a 75% off coupon.

Have you looked at the BK criteria for your area? Qualify for 7 or 13?
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Re: Debt questions

Postby dadmisseskids » Mon Jan 30, 2012 4:45 pm

Fatheroffour wrote:Maybe they're working up to a 75% off coupon.
That's what I was thinking. They started off with wanting 100%, then 60% and now 40%. Maybe 20% is next?
Fatheroffour wrote:Have you looked at the BK criteria for your area? Qualify for 7 or 13?
I have and I wouldn't be able to do a straight chapter 7 with my income. However, the lawyer said with my debt and the kids, it SHOULD go through.

I'd rather not do it if I don't have to. Some of debtors have threatened legal action but none have followed through and it's coming up on two years now, except the VW which is just over a year old now.
"Success depends on your backbone, not your wishbone"

Mommy has Borderline Personality Disorder? She's very difficult to deal with? Buy this:

http://www.amazon.com/gp/product/B0056JX46W
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Re: Debt questions

Postby hoodshy » Mon Jan 30, 2012 7:02 pm

For what it's worth and your mileage may very. I too did the AMEX less than full amount settlement dance. They got down to 60% and no further. But as I said, you may experience something else.
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Re: Debt questions

Postby SadDad » Wed Feb 01, 2012 1:24 am

13 is a wage earners plan so expect to pay something back based on a detailed financial assessment -in most cases its 25-40% of outstanding debt over 3-5 years. If you really have no assets and dont expect to have substaintial salary increases in the future (3-5 years) then best bet is 7.

The sooner you file the sooner you sleep and can start you life over.

Once you get your tax return you would need to wait 3 months to file (check with local atty). The court will go back and claim it up to 3 months.

They havent started legal action but they will - no doubt about it. Credit card companies and lenders are BURIED right now. They can resell your debt 20 times before someone (a hack collector) finds you 10 years+ down the road and royally screws your new family and jRs college plan. You will also get smacked with income and taxed for any settlement you make with a credit card, and maybe even mortgage relief on a short sale. That is a future income hit.

Chap 7 vs 13 guidelines are very straight forward, unless you make fat coin you qualify for 7.

Think long and hard. If you have the resources or will in the future, and are serious about paying these debts off then try to avoid (your credit is Fd now anyway so that cant be a reason) filing. If you are setting yourself up for future failure for years and years to come...file and be done with it...just wait 3 months after that return.
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Re: Debt questions

Postby SadDad » Wed Feb 01, 2012 1:28 am

Oh..and if you are doing the dance... you can get most credit cards down to either:

1) 1% of balance paid monthly at zero interest indefinitely.
2) 20% payoff (usually in 3 consecutive lump sums)

They wont go there to start, but if you battle enough they will get there. Although it may end-up being a collection company and not your original creditor.
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Re: Debt questions

Postby MMF » Wed Feb 01, 2012 1:29 am

+1 SadDad

I just filed a chapter 7 no asset. I was pretty damn painless, other than the paperwork and the classes you have to take. And like he said, you have to make a pretty good amount of money before you don't qualify to file. I'd look into it for sure if I were you.
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Re: Debt questions

Postby SadDad » Wed Feb 01, 2012 12:34 pm

From what I understand the main diff between 7 and 13 are:

1) If you want to keep your house file 13
2) Otherwise file 7 unless you make to much to qualify.
He didn't tell me how to live; he lived, and let me watch him do it. ~Clarence Budington Kelland
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Re: Debt questions

Postby dobradavid » Wed Feb 01, 2012 2:07 pm

You can actually get rid (legally) of a lot of bad credit history.

Visit creditboards (http://creditboards.com/forums/) and start learning how

I have no financial interest in this - and it's a free site anyway.

dadmisseskids wrote:I haven't paid any house, car or credit card payments since July 2010. I still can't believe they haven't taken my house but it's currently under a short sale. I don't care about the house anymore as I live in an apartment closer towards my work. They can have it.

I also owe my lawyer $7500 who is awesome, not only because she did great in court and I now have primary custody, but also because she is letting me pay $100/wk on that balance.

My car was repossessed and now VW wants $7,800. I've been evading calls.

One of my two credit cards is a military cards has a balance of $1500 on it and I have to pay that off. Supposedly it works the same way as a government loan.

I had an AMEX as well and that balance is $5000. They sent me letters demanding payment. I ignored. Then they sent me a 40% off coupon if I pay 60% of the $5000. I ignored. Now I just received a 60% off coupon if I pay 40% of the $5000.

If it wasn't for the VW debt, I'd probably do the 60% off thing with AMEX. My thought is that if I end up needing to declare bankruptcy (my total debt is listed in this thread and it's about $22,000 between these four things, minus the house), I've just wasted money paying off the AMEX debt.

I should get about $4000 back in taxes this year. Should I pay off the AMEX or just wait until the very end to see if I do end up filing bankruptcy?
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Re: Debt questions

Postby TransAm » Wed Feb 01, 2012 7:45 pm

I just did a 13 in PA. I would think the bankruptcy court would help you get the money owed to you by your ex.
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