How do I choose and begin?
Date: Wed, 01/17/2007 - 09:23
I own a home and small business. I have some equity in the home, and the book value of the company (S Corp, primarily contract computer work) is currently less than a thousand dollars. I have roughly $60k in unsecured debt, most of which is past due with some in collections. I have been employed only seven months out of the last three years (not through my corp., although I get a tiny odd-job here and there), and have been actively looking for work the rest of that time. Currently, every penny I can manage to scrounge is going to my mortgage, utilities, etc. I have a few nibbles on the line for work, but nothing solid yet. During the three years, I've drained my savings and IRA (paying the 10% penalty). I've faced the reality that I may need to put my home on the market soon, if I don't find work in the next month or two. There are several things I need to figure out:
1) Is my small business a factor at all if I have to resort to Chapter 7 or Chapter 13? My home?
2) What are some good guidelines to use when looking for a debt management/credit counseling service? I've heard some of them are ripoffs, while others will work more for my creditors than they do for me.
3) As I am currently unemployed, but would like to get a plan in place, so it's there when I do find work, is counseling/debt management something I can start the ball rolling now, or do I need to be able to commit to, and begin paying on a plan before I start? I'd like the calls to stop. I generally don't even answer them, as it is my experience that they believe everyone CAN pay their bills, they just don't, and treat me like a lying deadbeat. Even when I was current with all my bills, they began doubling and tripling my interest rates, and when I told them I needed them reduced, stated they could not, so I stopped trying.
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Any advice you can give me would go a long way toward getting me pointed in the right direction, and hopefully on my way to becoming debt free. Thanks.
Welcome to the Community :D Here is a link that has the benfit
Welcome to the Community :D Here is a link that has the benfits of consolidation, ranking chart for companies, as well as other good info for getting out of debt at http://www.debtconsolidationcare.com/help.html Always check one out with the BBB. You will be contacted soon for your free credit counseling..Good Luck..Karen
You will definitely find the help you need here. If nothing else
You will definitely find the help you need here. If nothing else you will find a great source of encouragement and much useful information. Take time and browse all of the forums, you won't be unhappy. Good luck.
If you are considering bankruptcy as the option, your mortgage p
If you are considering bankruptcy as the option, your mortgage payments will become easier because you will get rid of other debts. If there is substantial equity in your home, you might lose it when chapter 7 is filed. But if you go for chapter 13, you can keep your home and pay off any mortgage arrears through the repayment plan. If there are any missed payments in the past, your mortgage payments will get larger.
Per the new laws, credit counseling is a must before qualifying
Per the new laws, credit counseling is a must before qualifying in bankruptcy. debt consolidation can waive off most of the fees added on your total debt. The interest rate will also be brought down with your creditors. Basically, credit counseling is done to figure out if you can still manage payments with your creditors. Then you appear in a means test so that it becomes clear whether you qualify in filing bankruptcy.
Presently, your need is to find a good debt management company who can take care of your debts and negotiate with your creditors and arrange a lower pay off. This website offers free counseling. You can try the free quote from one of the consultants in your area and research them in the BBB.
What's considered "substantial equity"? Is there some limit in
What's considered "substantial equity"? Is there some limit in dollars that cannot be taken in a chapter 7? I can understand if I owned a $600k home with $200-300k equity, but my home is worth less than half that, with equity of around 50k.
Since there is not much equity in your home, chapter 13 will be
Since there is not much equity in your home, chapter 13 will be a better option if you are to file for bankruptcy. There are chances that Chapter 7 will leave you with nothing.
You will have a repayment plan fixed by the trustee and pay your creditors. This plan can usually be extended up to three to five years.
Bankruptcy is a very big decision and should not be taken lightl
Bankruptcy is a very big decision and should not be taken lightly.If you signed up on this site for the counseling and your still considering bankruptcy I would contact an attorney inyour area that offers free consultations .
If done by phone they will send you a complete package including everything you need to know.It will include all the exemptions you could take,state and federal included. In most cases federal is usually better.They will also include a list of government approved debt counselors.
I would talk with a counselor here first.I have high regard for the opinions of the people here and dont think they would steer you wrong.I have learned so much here.
