What to tell creditors when I stop paying?
Date: Wed, 07/15/2009 - 04:21
Since you have posted twice, I am locking this thread. Please reply to the other thread -Jason
Tell them you cant make payments and you need some sort of hards
Tell them you cant make payments and you need some sort of hardship plan. After that tell them you cant afford the hardship program. Then offer to settle for 25-30%. In the mean time save up money so you can settle. Or....file for BK.
what the person above said is accurate, however, if you are in a
what the person above said is accurate, however, if you are in a non debtor friendly state, you have a pretty high risk of getting sued if you do this on your own. Also, i don't know that they've ever offered an individual 25-30%. They offer companies that because they give them BULK settlements. 10's or hundreds of thousands per month, so can get pretty good rates.
If you enter into a program with a reputable company, then you can prove to the courts that you are being PRO-active instead of RE-active, and judges will more often than not, rule in your favor as long as you provide statements and proof that you're saving into that account monthly and working IN a plan.
If you are a W2 employee, you could be garnished, and they could put a lien on your house. If you are 1099, they can only put a lien on your house.
If you are in a program, you stand less likelihood of that happening, but it's still a possibility.
Also, entering a program will ENSURE that you are saving the correct amount at any given time. it's somewhat out of sight, and you can't just dip into it whenever you want to take your wife to dinner, or blow it on beer. I mean absolutely No offense by this but, you got yourself into a lot of debt. If you are going to do this yourself, you WILL have to REALLY change your perspective on spending and learn how to save successfully.
You may as well let someone else do it for you. it's easier, they know HOW to get you great rates, and you can still save at LEAST 50% overall. There are a lot of intricacies and nuances that not just anyone knows; like for example how to keep the creditors from selling the remaining unsettled debt to COLLECTIONS.
If you are in fact looking into BK, make sure you can qualify for a chapter 7..... chapter 13 will have you paying 80-100% of it back and is essentially like an extreme wage garnishment situation with all the added negatives of a bankruptcy - like completely ruining your credit for up to 15 years (They say 7-10, but government agencies can see it for 15)
Either way, i wish you luck. If you have any questions, feel free to PM me
