Debt And Credit Counseling
How to Instantly Eliminate Credit Card Debt (Without Bankruptcy or Credit Counseling)
Michael G. Mack (Paperback) Microdebt 2006-08-30
Answers
I Owe roughly $30k in credit card debt and I'm not sure which path to take.
Like mpb says, bankruptcy will mess with your life in unexpected ways. And they recently changed the regulations on it, so it's a lot tougher than it was just a few years ago.
It is in NO WAY at all an easy way out, if you file you'll probably regret it and wish that you had just tried to get counseling, learned how to control your spending, and paid it off the old fashioned way.
www.DebtmericaFreedom.com Debt Settlement video series focuses on credit card debt relief using Debt Settlement as an alternative to Bankruptcy ...
out of hand. I am now in the position of either having to file Bkrpt, which I qualify for, or pay my creditors through a credit counseling service. After a divorce, my home was sold (no equity), and at the time I was unemployed. I am now employed and renting a tiny house but hoping in the not real distant future to purchase one. I am trying to get my financial affairs in order, but the payments to these creditors are far more than I can afford without going through credit counseling. If I pay them through counseling, it will take several years to pay off my debts. If I file bankruptcy, it will remain on my file for 10 years, but I'll be able to buy a home, albeit with an astronomical interest rate.
Any advice?
well, sounds to me like you are well aware of your options, however, i'd shave about 3 years off that bnkrpt on your report. my husband filed many years ago...7 to be exact and it JUST came off his report.
i went through a program through a law office and it's DMB financial. i was in about $15,000 with credit card debt out of college. looking back, i probably should have just applied for a loan through the bank and paid them off and owed the bank, however, working with DMB has taught me alot and after 3 years, my program is almost done. we are waiting to settle the last account, which should happen in the next few months.
with DMB, they take power of attorney over your accounts....just the ones that you owe. so, the collection calls go to them...not you! then, they work out a workable monthly payment with you and that goes into a trust. then, once there's enough there to settle on a card, they settle and move onto the next account.
meanwhile, all this is happening and your credit is going WAAAAY down the toilet. HOWEVER, when you are done the program they fix all of your credit. so, your report is sparkling when you're finished. the only catch is that IF you get back into the hole while they are working with you, then they will stop all efforts and the contract will be void.
so, if they settle this accoutn and see that i got another card and ran that one up and it's bad on my report, then they wash their hands of me.
SO, it's been a GREAT experience learning how to manage my money and live credit card free.
my husband had some when we married and we are in the process of getting the last one paid off. very nice.
the best part...when we get all of our credit woes under control we will have freed up $500+/month! that's a nice car payment!!!
so, i would check out DMB OR see if your bank would approve a loan for you...at least then it's just one payment per month.
take care:)
Price: $24.95
I am going to go to a debt management program/credit counseling, it was the best alternative to avoid bankruptcy.
What are the best companies that charge a low fee and that can get the best lower monthly payment?
consumer credit counseling, www.cccs.org
We have 3 credit cards, all maxed to and over the limit. I am consulting a credit counseling service but my husband doesn't want it to ruin our credit. I personally think it will get us out of debt A LOT quicker and we're not filing bankruptcy. It may give us a blemish on our credit. But I think it's worth it.
Be careful with so-called credit repair businesses. Many are a rip-off and charge you to virtually nothing. You can do better contacting the credit card company yourself and work out payment terms.
Don't give me a "debt management" of "consolidation" solution as I will report you as a SPAMMER.
I have already begun the paperwork for Chapter 7 bankruptcy and know it will be a long hard road to fix my credit.
This is for those who have already or are in the process of filing for BK or those who know the process well, ONLY.
Fed law requires pre-filing counseling and a "certificate". I can do the counseling class online which I prefer. What companies have people who filed BK used for pre-filing counseling and and post-discharge counseling?
AND if you think I can get around the BK with the amazing "debt consolidation company" you are about to mention, don't... it just shows you haven't read my question and have no idea what the process is all about. I have no other options but to file BK right now.
And please don't preach to me about the evils of credit or bankruptcy or how great your loan co or debt consolidation co is. I'm experiencing the evils and just want my life back
I just finished my bk chapter 7 and used Greenpath Debt solutions for my pre bk counseling. They were very good, and let me have the counseling without paying a fee due to my lack of funds. If you want, you can view my q&a page for details of my experience with this. Or feel free to email me with any questions at hansjill228@optonline.net. Good Luck.
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Changes in chapter 7 & 13 in the New Bankruptcy Law | Los Angeles ...
Bankruptcy is provided by Federal Law and all the cases related to bankruptcy are handled in Federal Court. Basically it is a legally declared by the court in which any individual or the organization is unable to pay their debts, expenses, bills to their creditors. Those who are bankrupt can file bankruptcy in a way to stop their creditor to collect debt from them.
Chapter 7: Liquidation Bankruptcy & the changes under the new law
It would be very harder for some people to file bankruptcy now. Especially with higher income level category they are now no longer allowed to use chapter 7. They need to pay partial amount of their debt under chapter 13. Before filing a bankruptcy case all the debtors have to undergo for the credit counseling, budgeting and the debt management. This law imposes on the lawyers too so it is very difficult to find an attorney to represent the bankruptcy case. Following are the changes in the Bankruptcy Law – • Under the old law many filers can choose the type of bankruptcy. Most of them were choosing Liquidation (Chapter 7 – Bankruptcy) over Repayment (Chapter 13 – Bankruptcy) because they proved beneficial for most of them. But under the new law, it would not be the case for the higher income group filers, the new law has prohibited from using chapter 7 bankruptcy for them. • Now the question arises about how you will define your income is high for filing under the bankruptcy. Under the new rules, the first step is to figure out your monthly income against the median income for a household for your size in your state to file in the chapter 7 bankruptcies. If it is less than that then you can file under chapter 7 and if it is not then you have to pass the means test. Another clause or the law in order to file for chapter 7. • The means test is to be done to calculate your disposable income and to see whether you have enough disposable income after deducting your expenses, debts, payments under chapter 13. If your income is high up to a certain limit after deducting your expenses, debts and all then you are not eligible for chapter 7 and if it is less than the certain amount then you can file under chapter 7 bankruptcy. • Now the next step is the counseling from the approved agencies by the United States Trustee’s Office about the credit & debt counseling. Purpose behind this counseling is to see and give an idea about your need to file for bankruptcy.
...News
Debt Settlement Backend Processing Affiliate Net Branch Debt Management Guys ...I-Newswire.com (press release) - Feb 24, 2010
As of October 17,2005 all Americans seeking bankruptcy must complete a credit counseling program. The problem with this is that so many people are unable to and more »nwitimes.com - Feb 23, 2010
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TMCnet - Feb 22, 2010
If you, like so a lot others, are tracing that the pressure caused via boosting credit card debt is pressing you towards allowing for filing for bankruptcy and more »Springfield Business Journal - Feb 23, 2010
Unemployment also is pushing up bankruptcy filings, said Mike Cherry, president and CEO at Consumer Credit Counseling Services. “There are a lot of people Bankruptcies up in central Illinoisall 3 news articles »BigNews.biz (press release) - Feb 21, 2010
There are some questions related to your debt and credit cards, which you need to answer and accordingly debt counseling is planned for you. Senior citizen debtCredit Card Debt Relief Options Explained by TotalDebtRelief.netDebt Consolidation Company Helps Thousands in US and Canadaall 79 news articles »
Motley Fool - Feb 23, 2010
If that's simply not possible, then you may have to resort to extreme measures like bankruptcy or credit counseling services to get back on your feet. and more »24-7PressRelease.com (press release) - Feb 22, 2010
All individuals must have received credit counseling from an approved agency within 180 days prior to filing in order to be eligible. and more »