Bankruptcy will stop harassing calls

Bankruptcy can be lifechanging in a good way or bad way. For one thing since the new laws passed in October 2005 it is harder to file. You have to pass a means test and go to credit counseling. It gives some people a fresh start but chapter 7 stays on you for 10 years. Chapter 13 seven years. If you have no other way out it is an option. I wish you the best of luck on your decision. KYSIDE38

Try to negotiate for reduced payments directly with the creditor. You get a break and the creditor gets more money than if you filed for personal bankruptcy. The advantages of debt settlement are many in comparison to bankruptcy. You get to save a big chunk of money. Say, if you have a debt of $40,000 a good negotiation can reduce the total debt to $20,000. If you hire a debt settlement company, they will charge you a fee. Same with a bankruptcy attorney who will charge you for their services and the filing cost. You get to handle your debt situation on your own terms with the creditors without depending on any outside professional help.

Before I even started with the debt company I tried talking to Chase. Their solution?? They "generously" agreed to drop the interest on 1 card(I have 4) by 5% for 6 months. I feel now that my back is against the wall & trying to deal with all them will just delay things.

Talk to all your credit card companies and calculate how much you will have to pay each month. Then speak to a reputed debt settlement company and compare the plan they work out for you. You will figure out where you will save more

Bankruptcy is really a life-altering and very expensive way to handle debt. If you have a job, you will most likely end up in a Chapter 13 if you want to keep some of your assets (like your home and car, though each state allows you an exemption depending on the equity in your home) - but anything else of value is up for grabs in a Chapter 7. And you can get in serious trouble if you try to hide assets from the Trustee, who is responsible for payment of your debts by sale of your assets under a Chapter 7, before you are allowed to be discharged.

Bankruptcy used to be the "easy" way out - it no longer is. It is a very long, expensive process, and it's not easy by any means.

Suebee is right. Take it from those of us who had to file bankruptcy. Chapter 13 is difficult, even under the old laws, now with the new laws, it is even more so with what they leave you with to live on after paying the trustee. People see filing bankruptcy as taking the easy way out, trust me, it is definately not taking the easy way out, it is most difficult and emotionally draining to the entire family, especially the kids.

I work in an HR department and can tell you from seeing some of the garnishment orders that you probably have more money now than you could possibly have left after filing bankruptcy. I have one girl that only makes 8 something an hour and they are garnishing her wages for 400 bi-weekly. What will her check look like after that????? Even at 8.00 X 36 (we are healthcare so you work 12hrs X 3 days)= 288.00 X 2 weeks (bi-weekly) = 576.00 (before taxes and 400.00 garnishment). If this girl wasn't married, what in the HEXX would she do to live each week and she has 4 children ?????

The reason they are taking so much out of her paycheck is that there is other income in the household. If it were just here providing the income for four dependants they would not be garnishing her check as much.

Steelers is correct on that fact. But either way, having your paycheck garnished by a chapter 13 plan is NO fun. Regardless of how much income you have in the household, it takes a significant amount of that income away when you file.

When you are a single parent, the effect is darn near devastating.

And you also have to keep in mind when you file Bankruptcy - especially Chapter 13, where you will be paying on the plan for 3-5 years - the new bills don't stop coming in. You will have new car and home repair bills, medical bills, vet bills, the price of gas will go up and down (in the case of this year, it will do some pretty violent fluctuations) - but you will not be allowed any break at all from the plan - that payment comes out of your paycheck regardless of what else is going on in your life. You're just expected to deal with it.

Or as in my case, you find ways to make extra money to make ends meet - you sell online part time, you clean houses, you work your regular full time job...and then you try to spend time with your kids and take care of your own household responsibilities.

Suebee and I know all too well the devastating effect Chapter 13 has on single parents. And be careful with the extra income because any additional income for the first 36 months is supposed to go directly towards the plan. Making it that much more difficult to make ends meet and prepare for an emergency. Should you have one, you must go through the process to get approval to have a refund of your payment sent to you. It is a horrible nightmare, and one I hope and pray I NEVER have to relive again in this life time. It is as bad as we say it is, only trying to give you a perspective of the consequences of those trying to survive a chapter 13 plan.

thanks for making that point about the extra income, Steelers - I mentioned it only because my attorney stated I need not report it because it was not a large amount, and because I was a single parent with only one job. I would think the Trustee would look at it differently if it were a married person with other income to fall back on.

You are right. From my understanding with the new laws that the trustee wants to look at people's tax return statements. Under the old law, which I filed, they never requested nor was it expected they get a copy of my tax returns, not that I was bringing in alot of money. LOL.

I am retired from the State of Michigan. I have a very small part time job. 2 hrs a day, 5 days a week. I am currently in a debt settlement & theya re doing nothing! They say I have to be in their program 38 months. Meanwhile the calls still come. My husband works & lives in Germany

In the end you have to do what is best for you and your situation. Sometimes, the situation calls for bankruptcy to be filed when other options have failed. My understanding about debt settlement programs is that the calls will still come in, and you have to save up enough in your savings with the company before settlements and payments are made.

My husband and I filed for bankruptcy a little over 2 years ago. It was the best decision i ever made.

The decision didn't effect me negatively, mainly because i haven't used credit or a credit card since. When i tell people i don't use credit, they say that i am being to impractical...and that in the real world, you need a credit card and a good credit score.

But i've learned the hard way, that you can live your life, living comfortable within your means, never needing to pull out fake money provided by visa or mastercard. It's nice waking up in the morning not owing them.

Now, the only outstanding debt i have is from student loans, which my bankruptcy didn't wipe away (thank you clinton administration), but anybody worried that bankruptcy will ruin their life and credit score has been brainwashed by the credit card guys...but that's my opinion :wink:

It's really all about what is best for your personal situation. BK may be the right choice, it may not. Just research all the alternatives and think hard before you file.

How do u know when will they garnish ur wages? Can online payday loan do that as well?

It would be very difficult for an online PDL to garnish your wages no matter what state you are in. I know in my state of KY they are flat out illegal loans. I think even the legal store fronts are not allowed to garnish wages.

I just had my 2nd meeting with the bankruptcy lawyer. I feel so relieved already. Tonilah, I'm glad to hear you say it was a relief once you got thru it. I am by myself as my husband & I are separated. He lives in Germany & facing this alone is difficult, but I get courage from reading this site

I am sorry that you and your husband are apart. Please know that we are always here for you on this forum should you need to talk.I am glad you feel better after talking with your lawyer. :)