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Revised plan for "strategic" default. Critique please

Date: Wed, 05/19/2010 - 06:21

Submitted by rown
on Wed, 05/19/2010 - 06:21

Posts: 70 Credits: [Donate]

Total Replies: 9


So I'm a lot closer to the start of my planned default I posted about a while back. I'd like to post a sketch of what I plan again for all to critique. Some particular questions I have in blue.

State: South Carolina- No garnishment, fairly hefty state exemptions for property/cash when not claiming homestead expts (me)

I've decided to default on all my unsecured loans and settle my debts out.

Steps Ive taken so far:

Consulted with consumer and bk attnys to check out my options for both.

Changed banks to 2 local credit unions. One of my banks is one of my largest creditors so I dont want right of offset problems. Also I'm sick to death of banks from the last 2 years of runaway cl decreases, rate jacking, etc despite my 30 year perfect payment history to this date.

Gotten a prepaid card not associated with any major ntwide bank that can be direct deposited in for when the situation gets litigious [Are these difficult for creditors to find short of a court ordered debtors exam?]

Set up a certified appraiser to appraise a few old vehicles I have I plan to sell to jump start my settlement acct. This is for purposes of fighting fraudelent conveyance issues for future if a creditor somehow gets wind I sold them and tries to cast suspicion on the amt (they are non running and thus KBB values are worthless) I want a real market value to show a future BK Trustee if I drop back to that option or a future magistrate if they instigate an action to have the sale avoided. Ive been told this is almost unheard of but I like all avenues explored.

Set up a bank acct to DD into if all other avenues fail that is NOT in my name, in a relatives name. I have heard this MIGHT cause problems even though my lawyer told me its perfectly ok to do but my stance is that since my wages can NOT be garnished in my state for civil debt and all my money is wages it is therefore exempt and I can legally withold it from my creditors (up to my states legal cash exemption value of 5k). I will NOT subject myself to bank levies and then having to go and prove to unfriendly magistrates, judgment creditors etc that my money is exempt when it is very clear in my states laws that it is.

With the exception of a nasty bank levy im pretty much judgment proof for the forseeable future.

I plan on taking calls about once a week and explaining hardship (drastic increase in fixed monthly expenses, its true by the way) and then talking settlement starting around 4-5 months and settle what I can before C/O. What I cant settle before then I'll try and work out settlements with CAs/JDBS or just ignore it till its out of statute (3yrs in my state).


It will begin soon and I want all possible weaknesses addressed. Any input appreciated.
[COLOR=black][/COLOR]


hi rown, you may have posted this before, but what are your CC debts looking like?

i am also in SC and almost 2 months into my settlement/bankruptcy plan so maybe we'll be able to help each other out when it comes time to state laws/limitations!

good thing you will have some money to jump start your settlement!

BOL to you and please keep us all posted.


lrhall41

Submitted by blackbeasst on Wed, 05/19/2010 - 06:57

( Posts: 196 | Credits: )


[QUOTE=blackbeasst;700750]hi rown, you may have posted this before, but what are your CC debts looking like?

I have but glad to again, amounts are approximations because you never knew whos watching and attempting to put 2 and 2 together...

Overall CC debt. Around 4-45k

Largest creditor: BoA with around half that on multiple accts.
Second- Wells
Third- The evil Cap1

Couple other creditors with negligible balances making up the rest.

Current on everything right now but will not be soon.

Plan on making really nice with OCs as long as they actually owning the accts.

Less nice with CAs who dont own the debt but still will be willing to negotiate.

If/When JDBS own the debts I cant settle out in time then its game on with very aggressive behavior, trackable validations, call recording, Tracking FDCPA/FCRA violations. Countersuing in federal, the whole nine yards as from what Ive seen being as hard nose and aggressive as they are is the only language they seem to understand.

I have a local lawyer lined up who says I an su them for such violations in state courts if I so choose.

Also SC has a law that lumps OCs in with "collectors" as far as FDCPA goes so that seems to put some reins on them here.

If love for you to PM me and we can get into serious details. Id love to have a local person to compare info with as some of the things my lawyer told me I found to be innacurate in checking with state laws on my own.
:(


lrhall41

Submitted by rown on Wed, 05/19/2010 - 07:19

( Posts: 70 | Credits: )


Quote:

Originally Posted by rown
Id love to have a local person to compare info with as some of the things my lawyer told me I found to be innacurate in checking with state laws on my own.
:(


ahh yes, the lawyers. you musta had one that got his law degree from a cracker jack box like the one i talked to last week!

check out my thread to give you an idea of what all i have and has been going on. on vaca now but when i get back i'll shoot you a PM so we can get some more info!


lrhall41

Submitted by blackbeasst on Wed, 05/19/2010 - 07:34

( Posts: 196 | Credits: )


Wow Rown, you have done your homework and I am envious of your organization.

I am not in your state but most other things I can relate to....I am a little further ahead than you in that I stopped paying Citi (2 cards) about 2 months ago and Chase 2 days ago and B of A I will stop with next pymt.

I take their calls once a week and so far all have been nice. But I have all my settlement funds that I have been saving still in my account, I really did not know I needed to hide it, will look into that.

I wish you the best of luck and the only thing I think I can add to your story is that like you I had 30 year perfect credit, always paid more than minimum and never late and also now have financial hardship which is true and I just keep repeating.
But for me, Citi (citing those exact reasons) offered me a settlement of 40% at 39 days. I am trying to get it lower but I was happy they did it via UPS letter without me even asking.

Kaylee


lrhall41

Submitted by kaylee on Wed, 05/19/2010 - 08:07

( Posts: 176 | Credits: )


Thanks for the compliment!! I was not always so organized and even once almost jumped in feet first with one of the settlement companies. While it COULD have worked out ok It was one of the "we take our fee up front in the first few payments" places and I have since learned that that is a large red flag. So I began researching DIY settlement and landed here first and read day and night. Then branched out to some of the other large boards and soaked up all I could.

Then came lawyers who all sand the "just go BK" song like its a total walk in the park.

So Ive now decided to settle on my own if I can and use BK as a fallback position if things get seriously nasty.

As for hiding it the only reason I say that is that I dont intend to hide it from a judge under oath but from anyone else who cant put me in jail for not answering truthfully they can go hang. I didnt want to save up a large settlement chunk in a bank only to have it levied away from me.

Basically from what ive found reading boards, stories, talking to lawyers, judges locally and to people at my new credit unions is the whole world is basically against a debtor.

Banks collude, happily share bad info on you (chexsystems for example), happily levy even funds that are known to be exempt,

Judges happily side with CA's because "well if they are suing you surely you must owe the money..."

collectors falsify affadavits, lie about service, re age accts, sue on out of stat debt etc etc

Bankruptcy is a decent alternative if you dont care about it being on your public record or about your credit rating (I care zero about either of thos issues anymore) but even then the system is working against you as the BK Trustees are essentially paid on commission getting a percentage of the estate they were able to liquidate for benefit of the creditor in asset ch7 cases.

Its like you with just a few laws on your side (FDCPA, FCRA, TCPA and whatever state laws you may have vs the entire world. Literally. So in my opinion if you stand a snowballs chance you never stop reading, never stop asking, never stop learning and above all, never stop fighting....


lrhall41

Submitted by rown on Wed, 05/19/2010 - 09:12

( Posts: 70 | Credits: )


You sound like you have a clear plan are very organized. I think that is essential to success in the debt settlement process.

I just finished settling my unsecured debt with Wells Fargo - $130,000 of unsecured debt for $40,000. I did it with the help of a great Do-It-Yourself program which included CDs, workbook and phone coaching with an expert. Total cost for the help was $1150, very cheap compared to most full-service programs - which are robbery IMHO.

Kudos to you for doing it yourself. If you do get in a pickle, I highly recommend calling the company I used. They are incredibly informed and true consumer advocates. The service I got from them was worth 5 times what I paid!

I am blogging about my experience and my latest post talks about how a small fee for coaching benefited me.
deleted...pm

Please keep in touch and let us all know how your settlement process unfolds.

Jonathan Grossman
deleted...pm i will keep deleting your links until told otherwise johnny...pm


[QUOTE=rown;700732]So I'm a lot closer to the start of my planned default I posted about a while back. I'd like to post a sketch of what I plan again for all to critique. Some particular questions I have in blue.

State: South Carolina- No garnishment, fairly hefty state exemptions for property/cash when not claiming homestead expts (me)

I've decided to default on all my unsecured loans and settle my debts out.

Steps Ive taken so far:

Consulted with consumer and bk attnys to check out my options for both.

Changed banks to 2 local credit unions. One of my banks is one of my largest creditors so I dont want right of offset problems. Also I'm sick to death of banks from the last 2 years of runaway cl decreases, rate jacking, etc despite my 30 year perfect payment history to this date.

Gotten a prepaid card not associated with any major ntwide bank that can be direct deposited in for when the situation gets litigious [Are these difficult for creditors to find short of a court ordered debtors exam?]

Set up a certified appraiser to appraise a few old vehicles I have I plan to sell to jump start my settlement acct. This is for purposes of fighting fraudelent conveyance issues for future if a creditor somehow gets wind I sold them and tries to cast suspicion on the amt (they are non running and thus KBB values are worthless) I want a real market value to show a future BK Trustee if I drop back to that option or a future magistrate if they instigate an action to have the sale avoided. Ive been told this is almost unheard of but I like all avenues explored.

Set up a bank acct to DD into if all other avenues fail that is NOT in my name, in a relatives name. I have heard this MIGHT cause problems even though my lawyer told me its perfectly ok to do but my stance is that since my wages can NOT be garnished in my state for civil debt and all my money is wages it is therefore exempt and I can legally withold it from my creditors (up to my states legal cash exemption value of 5k). I will NOT subject myself to bank levies and then having to go and prove to unfriendly magistrates, judgment creditors etc that my money is exempt when it is very clear in my states laws that it is.

With the exception of a nasty bank levy im pretty much judgment proof for the forseeable future.

I plan on taking calls about once a week and explaining hardship (drastic increase in fixed monthly expenses, its true by the way) and then talking settlement starting around 4-5 months and settle what I can before C/O. What I cant settle before then I'll try and work out settlements with CAs/JDBS or just ignore it till its out of statute (3yrs in my state).


It will begin soon and I want all possible weaknesses addressed. Any input appreciated.
[/QUOTE]


lrhall41

Submitted by jonathan1270225430 on Wed, 05/19/2010 - 10:00

( Posts: 20 | Credits: )


[LEFT]Oh yes anyone have any input on the blue question I posted as part of my "plan"?

the question was basically how difficult if at all is it for 'them" to find an acct that is basically a prepaid visa debit card through a basically online bank that is not affiliated with any national bank? I know they have lots of tools at their disposal because as I indicated above the whole creditor/debtor system is heavily skewed towards the creditor.

If you say its not that difficult to find please let me know by what mechanism they find it if you know, short of a debtors exam basically at the point of the judges gun.

Thanks. [/LEFT]


lrhall41

Submitted by rown on Wed, 05/19/2010 - 13:11

( Posts: 70 | Credits: )


Greetings,

Ah the A-Bomb technique appears once again.
Great thinking, a pre-emptive strike.

Just have a couple of comments;

1. Change the contact information to a cell phone.
That way you'll have a record of the cc call center.
There may be multiple call centers around the US for one cc company.

2. I created a spreedsheet and chronicled everthing from telephone
numbers, names, balance and past due column. Keeps your records in order.

You will be successful!

Respectfully yours,
King "Kash" Jabba Labba


lrhall41

Submitted by King Jabba Labba on Wed, 05/19/2010 - 14:47

( Posts: 507 | Credits: )