Skip to main content

Debtconsolidationcare.com - the USA consumer forum

Debt Consolidation or Bankruptcy?

Date: Sat, 07/29/2006 - 22:08

Submitted by chelleybelly729
on Sat, 07/29/2006 - 22:08

Posts: 6 Credits: [Donate]

Total Replies: 5


Right now, i'm doing all I can to remove as many of my debts as I possibly can, either through disputes (I really have no idea what half the stuff on my report is from) or through paying off the balances (in the cases where I do know I owe the money). Certain debts I didn't feel the need to request validation for, because I knew I owed the money, but then I did also contact the actual companies I owed the money to, not the CA, and paid them off.

But when talking my financial situation over with a nonprofit debt counselling agency, they suggested i file for bankruptcy. When i asked what that would mean, or how it would look on my report to banks and such, they suggested I contact a lawyer to find out more.

Now, if I could afford a lawyer, I wouldn't need to file bankruptcy. The going rates in my area are roughly $500 for the consult, and then about $1500 for the retainer.

So I guess this post is more of a vent than a request for actual advise, though if it sparks conversation I can benefit from, awesome. :wink:


I have also been advised to look into Bankruptcy. I have been trying for three years now to get my debts paid off. I was in a consolidation company for 2 and a half years and not one thing was paid off. I am currently in a different program and I have so much debt my monthly payment to this program is so high I can't even afford to have all my creditors listed. I've talked to several different people and finally an attorney last week and the end results of the conversations suggested bankruptcy. My attorney is charging 1250, 650 up front for him to file papers and then two installments of 300. The thing is I have two pending court dates for two of my creditors trying to sue me. I can't afford to have my wages garnished and pay this consolidation program along with my other bills so I am starting to lean more towards the bankruptcy and if I do it, it's going to be a fast one so these cases can be dismissed.


lrhall41

Submitted by PinkLady on Mon, 07/31/2006 - 07:44

( Posts: 1720 | Credits: )


I thought the Bankruptcy law change. I am so much in debt as to where I can't even afford to pay my telephone Bill, I am in NJ what are the regarding bankruptcy here and what would the attorney's charge since I can't afford to pay them


lrhall41

Submitted by stephgenus on Wed, 08/16/2006 - 18:58

( Posts: | Credits: )


Bankruptcy laws have been revised. As per the state laws, you will have to undergo the credit counseling for a few months. Your financial status and income will evaluate whether you qualify for bankruptcy. There may be some local aid in your area offering free legal advice. Talk with an attorney to know your next step before filing bankruptcy. I believe you have to pay nominal charges for filing the papers.


lrhall41

Submitted by IncredibleHelp on Thu, 08/17/2006 - 14:01

( Posts: 492 | Credits: )


Attorney fees vary, some will require the full amount before they will file and some will require half the amount before they file. Most attorneys will give a free initial consultation and they will let you know about the fees. My attorney required I give him half the amount before he filed my bankruptcy and I just have to get the balance paid before the court date which could be another 2 months. In the meantime the creditors will leave me alone. My bankruptcy will end up costing me 1300 and that includes the filing fee. Now before my papers were filed I had to take a credit counseling course and the charge for that is usually 50, but I took it at a place that was non for profit and they don't require the 50 if you can't afford it. There is also another class that you have to take before your bankruptcy is discharged and that is another 30. It's pretty costly.


lrhall41

Submitted by PinkLady on Thu, 08/17/2006 - 14:43

( Posts: 1720 | Credits: )