How to proceed
Date: Sat, 01/31/2009 - 12:16
I am self employed through my own company and income has declined. I owe about 120K in corporate credit lines where I am the guarantor personally, and another 120K in consumer debt inb my own name. All unsecured. I live in Massachusetts.
Question 1 is can they get a lien on my (jointly owned with spouse) house if I default
Question 2 is how do I deal with them? If I could sell some property I have I could pay them back but I cannot sell in this market and be able to pay them off. What I need is for them to cut interest rate and min payment for say a year but when I asked one of the CC companies about this they say I have to be 30 days late first or unemployed on a W2. So I guess I have to trash my credit rating (it is now about 690) before they take me seriously?!
Any suggestions? I CAN and WANT to pay back this debt but I need breathing room
Thanks
Bill
Debt settlement program may be suitable for you. This will decre
Debt settlement program may be suitable for you. This will decrease the payable amount. More over you're getting time to arrange funds for settlement. At that time you shall not be paying debts to the creditors. But these non- payments shall be recorded as missed or late payments with credit bureaus. This may temporarily lower the credit score. However regular repayments shall definitely repair you credit report.
A credit card company can't put a lien on your property if you owe them money on corporate creditlines. If a situation arises that you???re unable to pay off your debt, Credit Card Company can obtain judgment against you. Then they have the right to place lien on interest in your home. Liens can create bad impact on credit report.
Debt settlement is your best option in my opinion you are going
Debt settlement is your best option in my opinion you are going to need to find some relief here. But stop paying you can save up your money to settle them off (or use a settlement company is what i did) Alot of people worry about thier credit during this process and it does go down but after about a year of being out of a program or getting your accounts settled it will go back to normal. In the long term it is better than bankruptcy. Sadly its the only way to get them to really work with you. until you have missed about 3-4 months of payments they are ready to start wheeling and dealing. If you are still unsure of things let us know someone will surly be able to answer your questions.
Hi massman, I would say Debt Management would be best. This i
Hi massman,
I would say Debt Management would be best. This is where the Debt Management firm negotiates with those creditors to lower the interest rate so you can be paying more on principal, thus paying the debt down faster. Your debt is rather high for settlement, the creditors would sue before you had a decent settlement amount saved up, thus risking your property. Debt Management works best when you are on time with payments.
Hope this helps.
chrys
