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Story about a debtor trying to get debt free

Date: Mon, 02/22/2010 - 22:30

Submitted by desiretobedebtfree
on Mon, 02/22/2010 - 22:30

Posts: 47 Credits: [Donate]

Total Replies: 21


I have been studying this forum and have decided to join you brave souls in your debt settlement processes. I would like to share my story as it develops in the hope that I will also be able to help others down the road.
I have a lot of business debt due to the real estate crash in Florida. I am no longer there, my business there was closed in 2006. I have recently opened a new business back home that is barely making it but I can at least afford to pay my utilities and basics. I have treaded water these last few years and made minumum payments on everything up until this Jan.
I have had perfect credit my whole life and am now not able to keep up with credit card payments. Also I still owe the same on them that I did 3 years ago without even using them. My husband got laid off over a year ago and we are now working together. Our deli is enough work for 3 people but so far is only providing a small income equal to one crappy paycheck.
I am at least fortunate to own the building that I am in and now operate strictly with cash and have no intention of ever using credit cards again. I intend to live the Dave Ramsey way after getting out of this.
Last year I made an attempt to work out a plan with Suntrust to consolidate my 3 accts. into 1 with a ten year fixed interest repayment plan so that I could actually make progress and pay something besides interest. I figured I would actually be able to pay it off much quicker once and if the economy improved. I even offered to set up an acct. at one of their banks for my current business credit card deposits but even though I could secure with real estate they would not work with me.
Last year also tried to get a consolidation loan from my local small bank that I have done business with for 20 yrs only to be turned down as well. I was stunned to be turned down. I could have honestly been able to make the payments with a consolidation.
Last month I met with a bk. atty who said that since I have equity I would have to do Chap 13 & repay 100% of my debt in 5 yrs. He would also charge my $3450 plus $274 filing fee plus court plus counseling plus plus plus but would be kind enough to add that to the monthly bk payment of appr $1100 a month.
Morally I would like to repay in full but cannot possibly committ to this kind of 5 yr. payment plan. There is absolutely no room for error, sickness, emergency etc., and it is way above my winter income and my summer income is not yet steady or determined.
I feel confident that once established we'll do okay but it will take us longer to get there due to the bad economy. I do not want to sell my building as it is both our home and our business plus a small rental income. This happens to be our only retirement nest egg and I don't want to lose it.
I do feel bad about try to settle because I have always paid my debts but have been forced into this corner and now must literally fight my way out.
I now vey much need a bailout so I guess I'll let the games begin!


Here is the breakdown of my appr $60k debt portfolio. I haven't been able to make most of my payments since Jan. A couple of them went unpaid in Dec. The next time they call I will get the amount of days I am late from them.
I was originally thinking that I would try to settle the 3 smaller personal accts. first and try to stagger and tackle the larger business portion around the beginning of next year so that I wouldn't have to pay taxes on all of the forgiven debt in the same tax year.

Suntrust Bank - $38k Business LOC (been paying int. only for 4.5 yrs)
Suntrust Bank - $6600 Business CC (min. payment for last 2.5 yrs.)

Suntrust Bank - $6500 Personal CC (min. pmt. for last 2.5 yrs)
Discover - $5800 Personal CC Only had this acct. for 1.5 yrs - was making min pmts
Lowes (GE Money Bank) - $3800 Personal CC 1 yr same as cash failure - original purchase $3105 been making $125 mo. payments for almost a year and now still owe $3800

See my next post for revised strategy.


lrhall41

Submitted by desiretobedebtfree on Mon, 02/22/2010 - 23:01

( Posts: 47 | Credits: )


I have revised my thinking of how to stagger the settlement. I want to take a moment to let you know that I was helped with this advise because of a phone call made to AKA Riot. The advise he gave me made a lot of sense, he was helpful and did not try to sell me anything & only tried to help point me in the right direction to successfully settle on my own. I just wanted to take a moment to thank him and to defend him.
Since he was in this business I have decided to listen to the free advise that he gave me which was:

Settle the larger Suntrust business debts first and hopefully they will also settle the personal Suntrust CC with it. This is 50k of my total 60k debt that could possibly get a very favorable settlement which leaves me with a lot less to tackle later.
The logic in this is that Suntrust is owned by Bank Of Am. and for unsecured business credit they will sometimes go as low as 10% but that I would most likely get 15%. I intend to try for a 10% settlement with them. He also told me that I should be able to break that settlement up into 3 or 4 payments if I have to, but to try to do all at once if in any way possible.
He also advised me that Discover is more difficult as well as GEMB. I have already found this to be true with the relentless phone calls from them. I accepted a 4 month $60 payment with Discover that will begin the 28th of this month. They lowered my int rate to 5.99%
GEMB offered the same sort of deal but I cannot make a payment to both of them this month and told them I could not committ to a payment right now so I will let them continue to age at this time. They should be calling me back soon.
Suntrust pers. CC called me today and told them I have no money and she asked me to call the hardship dept. I will call them tomorrow. I still have to take calls from the business accts. I have jsut recently got the courage to pick up the phone.
One other thing to plan is how we will pay for the settlements. Our plan: Temporarily renting out a portion of our home (We have a set up like a mother in law suite and the kids use it when they come home from college to visit) I hate the thought of losing privacy but you gotta do what you gotta do, hubby is going to get a third shift job starting this week plus still work with me. We expect a pretty good tax refund this year plus I have some big catering jobs scheduled for this summer and I hope to get more. We eliminated all excess spending long ago and I am looking forward to the day when I can afford to shop at a thrift shop again! Wish me luck!


lrhall41

Submitted by desiretobedebtfree on Mon, 02/22/2010 - 23:45

( Posts: 47 | Credits: )


Hello Desiretobedebtfree, and welcome to Debtcc.

Many of us haven't ever desired to default on our bills till we were forced to do so. You mustn't feel bad about settling your accounts. In fact, to me debt settlement sounds to be just the right option for you. Your score must have already been shot due to delinquency. So it wouldn't get worse further if you settle. Moreover, you would get your chance to repair your credit once you handle the debt burden effectively.

If you still want to know about your other available options, you can sign up with this site for a free credit counselling.


lrhall41

Submitted by SC on Tue, 02/23/2010 - 01:40

( Posts: 3937 | Credits: )


I have to second you on that one. I called him as well. Same experience (no sales pitch) and he took quite a bit of time running numbers and telling me some of his experiences. He gave me pretty much the same advice as more than half my total Debt Load is with BoA. It makes some sense when I thought about it that way. Get the biggest load off with a company that tends to be easier to settle with then go after the small(er) fish.

Even if some of them sue youre still looking at smaller suits on smaller amounts that you can probably settle more quickly.

He had to do none of this but he spent around 1hr of his time just giving me his view on my situation. Not once was there a sales pitch.


lrhall41

Submitted by on Tue, 02/23/2010 - 04:05

( Posts: | Credits: )


Ok, thanks Jason,
Wasn't quite sure how to do it. I didn't want my first overall posts to be too long and therefore broke them into 3. I've never joined a forum before and don't really know proper procedure. Some FAQ's that explain how to do things would be helpful for someone like me.
I did want my story to be easy to follow though. It was a little difficult to for me find someone elses similar story all in the same place but I am finding my way around pretty well now.
I am very glad to have found this forum. The wealth of information and encouragement of others is a great service.


lrhall41

Submitted by desiretobedebtfree on Tue, 02/23/2010 - 05:44

( Posts: 47 | Credits: )


[QUOTE=SC;657956]Hello Desiretobedebtfree, and welcome to Debtcc.

" Your score must have already been shot due to delinquency. So it wouldn't get worse further if you settle. Moreover, you would get your chance to repair your credit once you handle the debt burden effectively.

If you still want to know about your other available options, you can sign up with this site for a free credit counselling"


Hello SC,
Thanks but I no longer give a hoot about my credit score. A great credit score is what helped me get in this mess to begin with. My income has never substantiated the credit that I was allowed to have but a good score did.
Just a few years ago I had nearly $700k in debt and never even worried about it. The real estate business was good. I was one of the lucky ones that was able to sell all of the houses before the market totally crashed.
The majority of my debt is from the business that failed. I couldn't get out of an expensive commercial lease. (wasn't incorporated & had assets)
However with the way things are now in this current economy I am freaking out over $60k. I don't sleep anymore, have been depressed and have gained 25 lbs. For a while was even thinking that my $100k life ins. policy would solve all of the problems. I least I now feel hope for the future instead of doomsday.
As far as counseling goes I have already checked in to a debt consolidation plan and have found out that I can negiotiate a much better interest rate on my own just by missing one or two pmts. Disc. lowered to 5.99 and GEMB offered me 0% and no late fees until paid off if I could make $100 mo payment. DMP's are much higher interest than that plus fees
However due to bad weather and bad economy I can't even commit to that until things improve this spring. I plan to settle with them anyway since I have already paid them most of the original charges that I made in interest.
I now have learned to live within my means, pay with cash and haven't touched a credit card since late 2007. I have no intention of ever taking that road again. Kinda feel like I'm in rehab.


lrhall41

Submitted by desiretobedebtfree on Tue, 02/23/2010 - 06:11

( Posts: 47 | Credits: )


Quote:

Originally Posted by desiretobedebtfree
I have revised my thinking of how to stagger the settlement. I want to take a moment to let you know that I was helped with this advise because of a phone call made to AKA Riot. The advise he gave me made a lot of sense, he was helpful and did not try to sell me anything & only tried to help point me in the right direction to successfully settle on my own. I just wanted to take a moment to thank him and to defend him.
Since he was in this business I have decided to listen to the free advise that he gave me which was:

Settle the larger Suntrust business debts first and hopefully they will also settle the personal Suntrust CC with it. This is 50k of my total 60k debt that could possibly get a very favorable settlement which leaves me with a lot less to tackle later.
The logic in this is that Suntrust is owned by Bank Of Am. and for unsecured business credit they will sometimes go as low as 10% but that I would most likely get 15%. I intend to try for a 10% settlement with them. He also told me that I should be able to break that settlement up into 3 or 4 payments if I have to, but to try to do all at once if in any way possible.
He also advised me that Discover is more difficult as well as GEMB. I have already found this to be true with the relentless phone calls from them. I accepted a 4 month $60 payment with Discover that will begin the 28th of this month. They lowered my int rate to 5.99%
GEMB offered the same sort of deal but I cannot make a payment to both of them this month and told them I could not committ to a payment right now so I will let them continue to age at this time. They should be calling me back soon.
Suntrust pers. CC called me today and told them I have no money and she asked me to call the hardship dept. I will call them tomorrow. I still have to take calls from the business accts. I have jsut recently got the courage to pick up the phone.
One other thing to plan is how we will pay for the settlements. Our plan: Temporarily renting out a portion of our home (We have a set up like a mother in law suite and the kids use it when they come home from college to visit) I hate the thought of losing privacy but you gotta do what you gotta do, hubby is going to get a third shift job starting this week plus still work with me. We expect a pretty good tax refund this year plus I have some big catering jobs scheduled for this summer and I hope to get more. We eliminated all excess spending long ago and I am looking forward to the day when I can afford to shop at a thrift shop again! Wish me luck!

With the SunTrust accounts - remember, you went to them - they may know about the property (and equity) - BofA will usually settle business debts at .10ctd, this is true, but it is usually offered when the business is NO LONGER Active and when it has not been personally guaranteed by an individual. As you can also tell by your conversations with SunTrust - business and personal accounts are usually separate and dealt with that way (they don't usually communicate with each other). I just don't recommend you defaulting on the SunTrust payments until you have a solid game plan in place for settling the debts (funds available) and a fall back position if they won't budge because the business is still active or they review the equity in the property (if you were a guarantor on the debts).


lrhall41

Submitted by nole on Tue, 02/23/2010 - 06:24

( Posts: 58 | Credits: )


Quote:

Originally Posted by nole
With the SunTrust accounts - remember, you went to them - they may know about the property (and equity) - BofA will usually settle business debts at .10ctd, this is true, but it is usually offered when the business is NO LONGER Active and when it has not been personally guaranteed by an individual. As you can also tell by your conversations with SunTrust - business and personal accounts are usually separate and dealt with that way (they don't usually communicate with each other). I just don't recommend you defaulting on the SunTrust payments until you have a solid game plan in place for settling the debts (funds available) and a fall back position if they won't budge because the business is still active or they review the equity in the property (if you were a guarantor on the debts).



Have you personally dealt with a Suntrust bus acct? I'd appreciate further input. I haven't been able to find out much about dealing with them on this forum. My business is no longer active and was closed end of 06. I have a totally new business 1200 miles away in a property that I had owned. I can't help but default because I cannot pay it right now. I have no money. I explained my plan on being able to fund settlement above. What would you recommend that I do?


lrhall41

Submitted by desiretobedebtfree on Tue, 02/23/2010 - 10:11

( Posts: 47 | Credits: )


Quote:

Originally Posted by Shazzers
You must have been on the phone for weeks, you sure learned a lot from 1 (one) phone call. :roll:



Why so demeaning? FYI I have been studying what I can on this forum for a few weeks, have previously met with a BK atty, talked to a couple of debt settlement companies, tried working with my creditors. I thought I was making a pretty good decision about how to handle this, if it doesn't work out I will later be forced into bankruptcy. I thought this was a place for support and help not snide remarks.


lrhall41

Submitted by desiretobedebtfree on Tue, 02/23/2010 - 10:21

( Posts: 47 | Credits: )


I would have to agree...RIOT was great with me too. He spent alot of time with me on the phone and I ever forgot to ask something and called him back. No sales pitch..just free advice. I have kept his number in case I need to call him back. It is refreshing to see your story..very similiar to ours..not the same business..but same debt numbers a little more. We quit paying in Feb. Just starting to get calls. Some days I am feeling really great about things and then other days feel a little panicked..this board has helped a ton. I decided to start "talk it out" and relieve some of my anxiety about everything. I realize I can't post it here and I am not trying to make money on it, but I do hope that some day I will be able help someone else through this. It is also helping me document all that is happening. Anyways, I think your plan sound great! Just take care of yourself and keep posting!!


lrhall41

Submitted by luckin10 on Tue, 02/23/2010 - 10:27

( Posts: 181 | Credits: )


Quote:

Originally Posted by desiretobedebtfree
Why so demeaning? FYI I have been studying what I can on this forum for a few weeks, have previously met with a BK atty, talked to a couple of debt settlement companies, tried working with my creditors. I thought I was making a pretty good decision about how to handle this, if it doesn't work out I will later be forced into bankruptcy. I thought this was a place for support and help not snide remarks.

It wasn't meant to be snide, questionable perhaps, snide no.
Quite honestly, I am wondering if you and aka RIOT (who continually broke the forum rules by posting a cell phone number when asked not to do so) are the same person? Are you? Are you affiliated with aka RIOT?
I have NO problem with people advertising their companies IF they follow the rules and register as required by this forum, however, I do have a problem with unregistered guests coming to this website to advertise their business without following the rules. FYI, I am a volunteer here, I offer advice to help people get out of debt, I am required to follow the rules, and I do so! As a Mod, I am also required to edit posts which are NOT following the rules, which by the way is VERY time consuming, not to mention it takes my time away from other people I could be helping, but instead I am editing posts of people who aren't following the rules, does that make sense?


lrhall41

Submitted by Shazzers on Tue, 02/23/2010 - 10:28

( Posts: 17344 | Credits: )


[QUOTE=Shazzers;658161]It wasn't meant to be snide, questionable perhaps, snide no.
Quite honestly, I am wondering if you and aka RIOT (who continually broke the forum rules by posting a cell phone number when asked not to do so) are the same person? Are you? Are you affiliated with aka RIOT?
I have NO problem with people advertising their companies IF they follow the rules and register as required by this forum, however, I do have a problem with unregistered guests coming to this website to advertise their business without following the rules. FYI, I am a volunteer here, I offer advice to help people get out of debt, I am required to follow the rules, and I do so! As a Mod, I am also required to edit posts which are NOT following the rules, which by the way is VERY time consuming, not to mention it takes my time away from other people I could be helping, but instead I am editing posts of people who aren't following the rules, does that make sense?[/QUOTE]

Yes it makes sense but does not give you a reason to be so rude to me. I could clearly see that he violated the rule of posting his number and that he should have probably registered. With that being said I also believe that he was just trying to help in his own way and was leary of this forum for whatever reasons. I am not Riot nor am I affialiated with Riot but I did appreciate being able to speak to Riot and felt compelled to defend him. I can't say I'm feeling the same about you right now.


lrhall41

Submitted by desiretobedebtfree on Tue, 02/23/2010 - 10:50

( Posts: 47 | Credits: )


Hello Riot,
I didn't realize I would be attacked so fiercely for defending you. I have been accused of espionage in the forum. That's okay, even though I am scared as hell I am going to try your suggestions for my situation. Wish me luck and thanks again.


lrhall41

Submitted by desiretobedebtfree on Tue, 02/23/2010 - 11:17

( Posts: 47 | Credits: )


Riot's IP was banned for not following basic rules, the TOS of the forum. He did not register and continually had to be asked not to list his cell phone number. He made those choices. I am more convinced now that aka riot and desiretobedebtfree are truly one in the same. He cant follow the guidelines for a basic forum....how could he possibly run a business??

Closing this thread.


lrhall41

Submitted by SOAPLADY on Tue, 02/23/2010 - 11:26

( Posts: 17315 | Credits: )


Quote:

Originally Posted by desiretobedebtfree
Yes it makes sense but does not give you a reason to be so rude to me. I could clearly see that he violated the rule of posting his number and that he should have probably registered. With that being said I also believe that he was just trying to help in his own way and was leary of this forum for whatever reasons. I am not Riot nor am I affialiated with Riot but I did appreciate being able to speak to Riot and felt compelled to defend him. I can't say I'm feeling the same about you right now.

That is fine, you have a right to feel the way you wish, as do I. I wanted a direct answer from you and appreciate your response. I was suspicious that you were aka RIOT under a different user name, therefore I was skeptical about the fact that you were praising an unregistered guest who repeatedly broke the rules, even after he/she was asked not to.
Since you have answered my question, I will accept your answer and trust that what you have told me is the truth.


lrhall41

Submitted by Shazzers on Tue, 02/23/2010 - 12:45

( Posts: 17344 | Credits: )