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Guest

Hi, here's my bad situation. I am drowning in debt, can't pay it, can't make the monthly payments anymore. I have a low-income job, but own my house free and clear (inherited it). BK is not an option for me because I would not be allowed to keep the house under Ch. 7, and am not making enough money to pay the debt off in 5 years in a Ch. 13.

I tried to get a HELOC, but was turned down by 2 banks.

I don't have any savings or anything else I can use to settle the debts, and it would take too long to save enough money on my low retail wages. I am 3 months behind on most CCs (it's all unsecured credit card debt), and one is threatening to sue me.

I talked to a lawyer, and he advised me to sell the house, and it's a bad time to sell a house.

Any hope here? Any ideas?

Thanks for reading this.

Posted: Mon Mar 24, 2008 3:48 pm Subject:

Can you go to a credit counseling office and try to get help there? See if there are some options for low-income consumers in your area to obtain credit counseling. They might be able to set up payment arrangements with your creditors that you can afford, with no cost to you due to your income level.

Posted: Mon Mar 24, 2008 8:40 pm Subject:

Look up your state's laws concerning debt.

Guest · Posted: Tue Mar 25, 2008 11:26 pm Subject:

Hi, pls do not sell your house. I shoud keep it since it is the only valuable u might have and u might not be able to buy one in the future.
How much is your debt?? is it a lot?? if u have nothing left to pay for the CC then U might want to go for bk lawyer usually they have first free consulatation. Call a few fr the phonebook ask abt the fee. Usually the lawyer will get on the case once u pay them in full. U can make a payment for the fee. Ask them !!
Try to cut back on some expenses if possible and find PT job until u have more income.
Good luck !

Guest · Posted: Wed Mar 26, 2008 4:10 am Subject:

Try to get a home loan from a different type of lender. Banks are typically very tight and have very few programs - you need to go to a large mortgage company that has FHA financing or subprime lending so you can be forgiven for late credit card payments - don't give up with one or two local banks. is there someone personally that would take a lien against you house and lend you enough money to settle your credit cards. If you got about 50% of what you owed you could probably offer settlements to the credit card companies at about 120 days late (that would be five payments late).

Posted: Wed Mar 26, 2008 9:46 am Subject:

You sound like a perfect candidate for debt settlement. Debt settlement will damage your credit but it sounds like that's the least of your worries right now. Most debt settlement companies offer a free consultation so that's a good place to start. You could also try a "Do-It-Yourself Debt Settlement Kit" option. You'll learn a lot, keep your house, and pay off your creditors one by one.

If you do decide to pursue debt settlement, find a company that has a good standing with the BBB and don't get pressured into a program you don't understand. Good luck.

Phillip Maresca · Posted: Wed Apr 09, 2008 10:26 am Subject: debt help

Hi my name is phillip Maresca....I work for Atlas Settlement..I can help you get out of your debt so you dont have to sell your house. Call me and I can go over options with you.

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Drowning in debt - low income, but own house. Any hope?

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