it is just too much monay i owe on cards and i wont EVER be willing and able to pay them off!!

 

  • Classy chick 1:01 am on February 10, 2010 Permalink |

    I hear you and a bankruptcy seems so easy but trust me when you go up against the judge they do not favor you so well. Go seek a credit council. They can help you to absolve a great deal of debt and make it manageable for you I know they will try to take off like 60% or more of the debt. It is worth a try. It takes 7 long years to start over and even then most creditors will not lend you a dime.
    Think twice and exhaust all your resources.

  • Bedford S 1:01 am on February 10, 2010 Permalink |

    You didn’t indicate whether chapter 7 or chapter 13. If chapter 13, when payment plan set up by judge is satisfied. On chapter 7 debts are cleared as soon as bankruptcy is discharged. Of course record of your debts will remain on your credit report for 10 years.

  • Austin Semiconductor 1:01 am on February 10, 2010 Permalink |

    Advantage Credit Counseling Service.
    http://www.advantageccs.org/

    This is a legitimate, non profit service.

    Here is what they can do for you.

    They can help you avoid bankruptcy, and get you out of debt.
    $30k ?, $60k, $80k, $150k in debt, they have seen it all.
    Don’t worry about talking to them about your problem.
    That is what they are there for.

    If most of your debt is in credit cards:
    They can set you up in a plan to pay off all of your debts in 3 to 5 years. This is done by reducing your credit card interest rate with the card companies, shutting off all of your open card accounts. You will pay ACCS directly, a significantly reduced amount when compared to your current credit card minimum payments example $620 /mo vs $1000 etc.
    This will give you extra money per month to cover expenses, that normally you would just charge back to your cards. You can build up a small savings to cover unexpected problems.

    Basically, they work with your card companies on your behalf to reduce the interest payments. Then you send ACCS one payment per month ( or setup direct withdraw payment once per month).
    All of this money will be then paid to your card companies evenly by ACCS. With your credit accounts closed, you will pay off your debt in a few years, rather than a life time.

    You can call them at any time, and ask as many questions about debt, the plan, card companies, bankruptcy etc. They are there to help, and do not charge for this service.

    The amount that you pay, remains the same for the entire time you are in the program, which allows the snowball effect to get you out of debt in a reasonable time.

    Interest:
    Your interest rate will be negotiated/reduced on each card, and often will drop from 30% to 7%, to %12 etc depending on each different card company.

    Why would the credit card companies want to reduce my interest rate? Because they want to get paid. If you remain in the plan and not use any new credit, then you are likely to be able to stay out of bankruptcy, and pay off the loan. So it is in their best interest to help you to do that. All the big card companies will roll over when contacted by ACCS, don’t worry about that.

    ACCS will put you in a plan, so that you can pay off your credit card debt with in a certain amount of time.
    Usually 3 to 5 years.

    What do you have to do?
    First you will discuss your income, and all credit cards with balance, interest rate, other expenses ( calculated per month), such as rent, car loans, water bill, electric bill, cell phone, cable, parking, food, medical bils, medicine, expenses for eating at restaurants, cigarettes, beer … everything. They need to know what is your budget.

    They are not going to question you about these, but usually just write them down, so they can be sure that you can make your reduced payments.

    You can find a list to prepare on their web site.
    The purpose of this information is to determine if you CAN be in the program. If you are meeting your bills now, but are struggling then you are a excellent candidate for this type of program.
    They need to find out that if they reduce your credit card debt , can you make your payments. For example, if you cant make your payments even if they are reduced, then you may consider bankruptcy, and they can help you with that. There is a class you must take first, which is largely to make sure that it is really the right option for you, then they can help you.
    But I strongly advise simply working with them to pay off your debt in a few years, and you credit history will be in a much better position. Besides, in bankruptcy, with the new laws passed a few years ago, you will still have to pay off most of your debt anyway, so why have that on your record.

    Get started:
    Talk with a counselor, and setup an appointment to go over all of your expenses we discussed above, calculated as an average per month.

    You sign up for their service, which is almost free.
    Remember, they are non profit, so you will only pay them a small nominal fee with your first payment for your debts.
    A ? $35 one time setup fee, and then $5 per month for each credit card in the plan ( maximum of $45 ? of you have too many).

    Your regular utilities and other expenses will not be in the program, and you have to pay them yourself, such as electric, internet, cable etc. Only credit cards, and debt.

    After you discuss this with a counselor and decide on a payment date, you will have to contact all of your card companies, and move the payment date to at least 7 days after your payment date to ACCS. For example if you choose a payment date to ACCS of April 18, then all of your card payments must be moved to after April 26 so they are not late each month.
    This is one of the things you need to do.

    You will get letters in the mail from each card company indicating that they have accepted you into their program and will tell you the new min payment, and interest rate. This is provided that they receive their payments from ACCS ( from you) on time, and you remain in good standing, etc. Otherwise, they will put you back up at the higher rate again etc.
    So don’t miss a payment to ACCS, and get the payment dates setup.

    If you get paid twice per month, and you have to pay rent the first of the month, then paying ACCS 2nd half on the 18th makes sense.

    Try to avoid bankruptcy, call them today 866-699-2227.

    Email me for questions.

  • Dixie Darlin' 1:01 am on February 10, 2010 Permalink |

    Even if you meet the qualifications to file Chapter 7 bankruptcy, with the new BK laws you will still be required to repay a portion of the unsecured credit card debts.

    Discharges take at least 3 months, however you will be under protection once you file. Your credit will be ruined for 10 years.

  • Maggie G 1:01 am on February 10, 2010 Permalink |

    How much is too much?

  • SPIFIMAN1 1:01 am on February 10, 2010 Permalink |

    For most chapter 7 bankruptcy’s it takes from 90 to 120 days start to finish and your debts are discharged.

    The debts will still show on your report for 7-years as "Included in bankruptcy" and the BK itself will show for 10-years, but if your smart you can reestablish your credit back to better then it was in as little as 24-months.