Secured debts can be a
challenge but if you do some legwork, you can probably make some
progress.
I know you said you wanted options other than BK, so here are some
suggestions:
1. I personally am not aware of debt consolidators who work with
secured debts. If you haven't done so already, call the secured
creditors and ask if they have any hardship plans to get you back on
track.
2. You might want to search your local attorneys who specialize in debt
issues and ask them what you might be able to do to work with your
secured creditors (b/c you don't want to go the BK route). I would NOT
seek out a BK attorney for this task b/c they make their money when
people DO file so they probably are not objective enough.
3. If you file BK - like a Chapter 13, you can pay your arrears in the
plan but you must be able to pay both the secured regular payments plus
the plan. In a Chapter 7 all your debts are wiped out, but you can
reaffirm some debts such as mortgage and car in order to keep them.
4. Besides the standard suggestions such as borrow money from family,
get a second job, etc., I am at a loss for ideas. Perhaps someone else
here can help us.
I was able to get put into a
hardship program by my mortgage company. I had to fill out some forms
and fax them in. Then I had to follow up with a few phone calls, answer
some questions, and fax some more forms. They reduced my interest rate
for three years and reduced my payment amount for three years. I am
paying almost $600 per month less. However, at the end of that three
years, the loan get reamortized and I owe the remaining balance by the
normal payoff date. At that point, my payment will be about $100 per
month more than it was before I started the hardship
program.
Sub: #1 posted on Fri, 08/08/2008 - 11:01
(Posts: 3 | Credits: )
I know you said you wanted options other than BK, so here are some suggestions:
1. I personally am not aware of debt consolidators who work with secured debts. If you haven't done so already, call the secured creditors and ask if they have any hardship plans to get you back on track.
2. You might want to search your local attorneys who specialize in debt issues and ask them what you might be able to do to work with your secured creditors (b/c you don't want to go the BK route). I would NOT seek out a BK attorney for this task b/c they make their money when people DO file so they probably are not objective enough.
3. If you file BK - like a Chapter 13, you can pay your arrears in the plan but you must be able to pay both the secured regular payments plus the plan. In a Chapter 7 all your debts are wiped out, but you can reaffirm some debts such as mortgage and car in order to keep them.
4. Besides the standard suggestions such as borrow money from family, get a second job, etc., I am at a loss for ideas. Perhaps someone else here can help us.
Sub: #2 posted on Fri, 08/08/2008 - 11:26
(Posts: 1129 | Credits: )
Sub: #3 posted on Fri, 08/08/2008 - 13:19
(Posts: 1230 | Credits: )