Best Options CC debt (some gambling)
Date: Sat, 05/15/2010 - 19:49
As I understand it, I can either:
1) Negotiate consilidation for lower interest with the CCs
2) Allow my CC to go delinquent for 90 days, at which time they may offer me a settlement of 15-20% of total owed amount
3) Bankruptcy
My questions are:
a) Does the fact that a substantial portion of these debts was internet gambling related affect my ability to do any of these options? I took out a $10,000 cash advance last November and used some of that money in gambling. (And if this is an important factor, How far do they look back in your credit history?) I dont really understand this thing about internet credit car gambling money transfers being unenforceable––does this mean anything in my case?
b) It seems risky to me to let accounts go 90 days delinquent. What if the CC don`t offer to settle? What of they offer a lot less than expected? Is the account turned over to CA? What are consequences––can I still go for Bankruptcy?
c) Can I go for Chapter 7 bankruptcy with a monthly income of $1500 and no real assets? What is the difference in damage to credit score––bankruptcy vs. settlement?
Quote:Originally Posted by BillowI am more than a little confuse
Quote:
Originally Posted by Billow I am more than a little confused at this point. I have about $35,000 in debt. Maybe $20,000 of that was racked up in internet gambling. I planned on getting a nice job out of grad school and paying this off, but the economy sucks. As I understand it, I can either: 1) Negotiate consilidation for lower interest with the CCs 2) Allow my CC to go delinquent for 90 days, at which time they may offer me a settlement of 15-20% of total owed amount 3) Bankruptcy My questions are: a) Does the fact that a substantial portion of these debts was internet gambling related affect my ability to do any of these options? I took out a $10,000 cash advance last November and used some of that money in gambling. (And if this is an important factor, How far do they look back in your credit history?) I dont really understand this thing about internet credit car gambling money transfers being unenforceable??????does this mean anything in my case? b) It seems risky to me to let accounts go 90 days delinquent. What if the CC don`t offer to settle? What of they offer a lot less than expected? Is the account turned over to CA? What are consequences??????can I still go for Bankruptcy? c) Can I go for Chapter 7 bankruptcy with a monthly income of $1500 and no real assets? What is the difference in damage to credit score??????bankruptcy vs. settlement? |
just my .02 here:
1. yes you can try and consolidate but im sure you will have to be past due.
2. for settlement yes you will have to let your accounts go delinquent. BUT, good luck on getting them to talk settlement at 90 days, much less 15-20%. most don't get under 30% at 180+ days.
3. bankruptcy. how is your current income and other expenses like house and car?
a. a $10,000 cash advance 7 months ago? i would go out on a limb and say no CC company will talk settlement and more then likely sue you.
b. of course its risky to fall behind on accounts you owe money on. they know that and know that most people don't have the morals to do it even if they can make the minimums. at any point yes you can always file for BK even if they sue you.
c. anyone with any income can file BK regardless of debt or assets. settlement stays on report for 7 years as opposed to BK which is for 10. and yes your credit will take a significant hit both ways. just depends on which path you wanna take. pay nothing and file BK and start to rebuild your credit, or try and pony up $8,750 (and thats if you settle at 25% across the board which more then likely won't happen) and then try and rebuild your credit.
again these are just my points of view which im sure some won't agree with :D
If you are having problem with your credit card already. It is m
If you are having problem with your credit card already. It is much better if you will go to your credit card company and talk about having debt consolidation to help you on your problem.
You should definitely talk to them and see what options, avoidin
You should definitely talk to them and see what options, avoiding them is actually harder in the long run and I have found them to be nice if you.
I am just guessing but from saying you were getting out of grad school I think you are younger and you will read a lot on these forums about there being no rhyme or reason to some people getting offered settlement and some not but I have noticed that when I talk to them they say 'you have been with us and a good customer for many years which is why we are offereing settlement' so I am starting to think this is a factor.
If you have taken huge cash advances then yes you might have a problem.
I don't know anything about taking the money to gamble and how they would know it but I can certainly tell you that not paying your credit cards seems to me a lot less risky than gambling. Others might not agree and they might be right. :)