- How can I dig myself out of this credit card hole?
Given the current economy, would doing a "charge-off" on my credit cards be a reasonable option, and how would I go about doing it for my biggest benefit? Many years ago I had a college credit card that I couldn't afford to pay off. I finally asked about a charge-off on it; about 80% of the card's balance is as low as the company would go. Given that the balance was about $2000 I don't feel the charge-off was really worth it, so I didn't do it.
Soon after that, I bought my first house.
Now however I find myself in much worse credit card debt, nearing $30,000 over a span of 6 cards. The two highest cards have $8,000 balances, and then a few thousand on various other cards. Most of these cards are charging me 30% interest. I have taken a second job, well paying, just to pay off these cards but the interest rates are so high that I just can't seem to make a big dent. Working all of 08 putting all my 2nd job's money to the cards, not using the cards and I'm only in 3k less debt than I was.
I know of some people who told me that they were able to get cards charged off for pennies on the dollar without declaring bankruptcy. I told them it probably hurt their credit, but they were just happy to have the debt gone and credit scores recycle every 7 years anyway...
So I'm reminded of my charge-off experience and that they'd only go t 80%...if I could get even 50% on one of the $8k cards, I could pay that now and save myself so much in interest and use the snowball method to pay down the others...but when I tried last time they just wouldn't go that low.
Complication: My wife and I DO plan to move before the next 7 years, which would involve selling our current house and buying another, so I really DON'T want to nuke my credit where I can't move for 7 years.
Any suggestions on what to do here?
- Are No-Credit Auto Loans No Problem?
Online auto loans; too good to be true? My credit is non-existant, but I need to get a new(er) car. I have a good amount of money for a down payment, but no reputable bank will touch me. However, I just found a number of online auto loan lenders who specialize in bad/no credit/bankruptcy loans.
Obviously, there's no such thing as a free lunch. Just as obviously, I'll likely be hit with a usurious interest rate. I'm OK with that for the time being, but I feel like there's something I'm overlooking.
Any MeFites have experience in this area? Are they a scam or a godsend? Any hidden weirdness I should look out for? Any specific recommendations?
Hard facts and anecdotes are equally welcome.
- Garnished wages can we still settle the debt?
My Mom’s wages are being garnished by a collection agency. Can we still settle the debt? How much do we offer and where do we get the money? My mother’s Ford Fiesta bit the dust a month ago and she needed to get a new car. Her hours have recently been cut at her old job and she has just taken a second job for significantly less money ($7.50/hr versus $10.50/hr). After talking with her I came to the realization that she couldn’t afford to even purchase a reasonable beater for a few grand. I decided that I would help her out with a few hundred bucks and an interest free loan on the condition that I could look at her finances and make sure everything checked out. Here is what I found:
Her monthly income is variable but appears to average about $1000/month +/- $200 (her rent is $480/month).
She has one credit card with a balance of about $1100
She owes a collection agency about $13,000 and they have begun garnishing 25% of her wages at her primary job. The debt comes from a credit card where the original balance was about $6000. She settled with the credit card company but then failed to make the payments and the account sat in collections for a couple of years.
Here are my questions:
Now that the collection agency is garnishing her wages is it too late to settle with them?
If we can settle with the collection agency how much should we offer?
If we do offer to settle, how should we raise the money to pay them off? Will banks make loans to me or my Mom for this purpose?
Should my Mom just file for chapter seven bankruptcy?
We are both located in Michigan. My Mom does not have any significant savings or assets other than a 401k. I have only been out of school for a couple of years so I am still trying to get on my feet. I have good credit and some savings, but not enough to pay for this endeavor unless I borrow against my 401k.
- Is my debt going to ruin my parents' credit?
How will a line of credit that my parents cosigned affect my ability to enter into a debt repayment plan through credit counseling? I've reached a breaking point and I need some help figuring out how I'm going to deal with my debt. I already plan to speak to a credit counseling service and possibly a trustee in bankruptcy next week, but your advice is greatly appreciated. In general, I understand what's going to happen in terms of setting up a repayment plan or a consumer proposal. I'm concerned because part of my debt is an $8000 line of credit that my parents cosigned for me when I was a student.
Is there a way for me to address my debt woes without screwing up my parents' credit? Secondary question: how do you talk to your parents about stuff like this? They're going to be horrified and disappointed in me and it's making me sick thinking about it.
Supporting details: I'm in Canada, I'm 35 and I owe about $45K total ($36K credit cards, 8K line of credit and 3K overdraft). I have no assets and I'm just getting back to work after losing my job a couple of months ago. My parents could almost certainly pay off the line of credit easily... they're pretty well-off, but a little sensitive about money right now because my dad is retiring next year. Our relationship is OK but not fantastic.
Throwaway gmail account is canadiandebtor@gmail.com.
- My bankruptcy dismissed, but so was my debt.
I filed for Chapter 7 bankruptcy(mostly credit card debt) a couple of years ago, and it was dismissed on a technicality (missed a credit counseling class). I was going to refile as soon as I got a call from a creditor, but none of them has ever called me, and it's been 2 years now, and I'm wondering what to do. I just checked my credit score and it shows 0 delinquencies, and the only debt I have is my car payment, which is almost paid off. It also shows a bankcruptcy that was dismissed. What should I do? Just let it ride? What happens if I apply for another credit card, will they see that my bankruptcy was dismissed and hit me with a $20,000 bill? I did everything through a lawyer (who wasn't very good, apparently.)
- Is Alitalia Dead?
What's the latest news on Alitalia? I know they've been struggling badly over the past few years, and there appears to be some new developments in the past day or two. My interest in this is that my parents are currently in Italy, flying back to the US next week. One of their flight segments is on Alitalia, so I'm wondering what the likelihood is that the airline will cease operations (or at least ground some flights). Any thoughts?
- Mortgage Renegotiation
Asking for a friend. She's financially naive, and got stuck with an absolutely terrible loan on her house. She is several months behind on her mortgage payments, and needs to renegotiate the terms of her mortgage. As a result of this and other problems, she has declared bankruptcy. She desperately wants to keep her house, and so far calling the mortgage company has been fruitless.
She's found a company that promises "loan renegotiation services" for the low, low, price of one month's house payment. I cannot find much information on them on the internet, and I'm not sure what a third party can do if the bank is intransigent.
Does anybody have any experience with this type of service? Are they scams, or can they do some good? I'm suspicious because although my friend says that the person that she talked to promised her money back if they weren't able to do the renegotiation, the contract language was so garbled that I told her to get them to rewrite it before she'd sign.
What she wants out of this is to have the amount that she is arrears on her payments added to the principal of the loan. She says that if they do this, she'll be able to make the monthly payments from now on.
This is in California.
- How can I get money I am owed from a UK based employer going bust?
The UK based company I have been working for is going under (I am in the US... I was hired as their Los Angeles based Art Director last November.) They never got the US corporation together so I was always payed as a contractor, month to month, for which I had to invoice them, always with the promise that as soon as they got the US corporation established I would get my pay as a salary with benefits like health insurance. The only binding agreement I had with them was a signed offer letter which set my yearly salary, bonus terms and equity. Without any warning last week they told all their employees (and contract workers like me) that they were out of funding, after they had assured us that the company was fine financially until the end of March, so no one has been paid for February or any of March. So they owe me a lot of money for work I've already done. There is talk now of restructuring the company with an "insolvency practitioner" and doing a CVA (Company Voluntary Arrangement,) all British terms that I am unfamiliar with. I know it is something like bankruptcy. Does anybody know anything about this? Is there any way I can stake my claim so that if this does happen, I am at least in line to get some or all of what is owed to me? Is there something I should be filing, and if so with whom? I am still officially working for them (even though I haven't been doing any work since this whole debacle began about a week ago... there is nothing to do) because I haven't quit and I haven't been officially let go. Can anybody help?
- Gift card and Chapter 7
I have a nontrivial balance on a gift card for a local retailer that has gone out of business and is filing Chapter 7. What are my options? I received a gift card for several hundred dollars to a local bike shop a few months ago and have been slowly using it -- too slowly as it turns out. Over the last few weeks I stopped by a few times trying to make a purchase but the shop was closed even though it was during normal business hours. I didn't think much about it because all the inventory was still there and I assumed it was probably a personal situation or something.
I finally tried calling and found that their phone was disconnected, and then I found their web site dead too. Through Google and archive.org I was able to find the owners' names and email addresses. I sent a polite inquiry about how to liquidate my balance and received no reply. After further research I found one owner's phone number and spoke to her this afternoon. She told me that they were going through Chapter 7 (it wasn't clear to me if they've filed yet) and that she had forwarded my email to their attorney.
I got their attorney's contact information and am waiting for him to return my call, but I would like to know what my prospects are for recovering the balance and if anyone can recommend a strategy to improve them.
This is in Sonoma County, California. Thanks!
- It's not mine, I swear!
Creditors are starting to harass me again for old debt that I don't believe I'm responsible for. I divorced back in 2003. In the settlement, my ex-husband and I were each assigned a handful of credit accounts. I paid mine off, he filed a chapter 13 bankruptcy. Two credit agencies are now contacting me about (2 different) credit card debts, both of which are the responsibility of my ex-husband according to the divorce settlement.
I have a copy of the bankruptcy matrix which lists both of the credit accounts. I've faxed the matrix and copies of the divorce settlement to both credit agencies but both say that since I was the primacy cardholder, that I'm responsible for the account.
My ex-husband and I are no longer in contact, although I do have his cellphone number (but he refuses to discuss this issue). Creditors are not interested in contacting him. In the meantime, my credit rating continues to suffer with these 2 bad debts on my report.
I have the bankruptcy matrix, the case number, and the name of the lawyer that handled the bankruptcy (although he refuses to give me any information about the case). What do I do now? I live in Kansas, if that matters.
- How much will a bankruptcy cost?
How much should a personal bankruptcy cost in Michigan? I know that bankruptcy is not a good idea and believe me I have exhausted all other options. I am going to file a Chapter 13 bankruptcy which includes me and my wife. One attorney that does television advertising in my area told me over the phone that my only out of pocket cost would be $594.00. I have heard from a few other people that this type of thing should cost around $2000. Unfortunately, no other attorney will give me any type of price without an in person consultation. I just want to know what the ball park price for this is going to be and also if anyone has any experience with a reputable bankruptcy attorney in the Metro Detroit area.
- Looking for public companies that have turned the page after Chapter 11...
I'm looking for two reliable, often-updated list of publicly-traded companies that 1) have just filed for bankruptcy; or 2) are re-emerging from bankruptcy protection. Any clues? I'm sure there are some out there, but my google-fu has failed me. The NYTimes section on Bankruptcies has some information, but you have to sort through alot of noise to find anything useful.
Specifically, I am looking for either a US or Canadian list of either of the aforementioned, but I wouldn't frown on both. Thanks!
- What will happen if my bank goes bankrupt?
What will happen to my money if E*Trade declares bankruptcy? I have a few bank account elsewhere, but the majority of my money is help in various E*trade accounts. This includes checking, savings, brokerage, and CDs. I'm aware that the money in the banking arm is FDIC insured, but what does that really mean? Is all of my money insured? Will it all go away if E*Trade goes under?
Any sort of real world explanations and advice would be appreciated.
- Will bankruptcy absolve you of tax debt?
Will filing for bankruptcy absolve you of tax debt? I owe a lot of money in back taxes, in addition to some other extremely large financial burdens that I won't get into now. The debt is from 2003 and 2004. I set up a payment program with the IRS and have kept up with the payments for about a year now. Now I'm on the brink of other financial difficulties and wondering if Chapter 7 will get rid of my tax debts as well. Even a bankruptcy lawyer I spoke with wasn't sure! The laws changed in 2005 and nobody seems to know what's going on now!
- What to do about student loan payments misdirected during Chapter 13 bankruptcy?
I made $3,000 in payments on my student loan during my Chapter 13 bankruptcy, but they were not applied to my loan balance. What should I do? I just had a chapter 13 bankruptcy discharged successfully after 3 years. When I filed chapter 13, the trustee told me to continue making payments on my student loan. I had been paying about $100/month to Sallie Mae. On finding I could no longer access my Sallie Mae account online, I called them to find out what they wanted me to do. The representative told me they couldn't bill me since I was in bankruptcy, but gave me the address where I could send my payments, and told me to write my SS# on the checks so they'd know where to apply the payments. I made the payments every month by check, and they cashed them.
Last February I checked my credit reports and found they showed the loans had zero balance, with a claim filed with the government. I called Sallie Mae again to find out what my balance was. I spoke to a rep in India, and he told me it was paid in full. I sent a letter to Sallie Mae requesting an accounting of the activity on my account since the bankruptcy was filed, and stated that per their rep saying the loan was paid in full I would send no more payments until I received such documentation. I never received anything in return.
Last week I got a letter from Sallie Mae stating my payments were to resume now that the bankruptcy was over, as of October 5th. The total balance on the loan did not reflect any of the approximately $3,000 I had sent them during the bankruptcy! I called them, and after going through a guy in India, a rep in the US, and her supervisor, I was told they sold the loan to the guarantor (Connecticut Student Loan Foundation) as soon as the Ch. 13 was filed, and that I had been supposed to pay CSLF the whole time. She said they'd been forwarding the money on to CSLF. Now that the bankruptcy was over, CSLF had sold the loan back to Sallie Mae, but without reflecting any of the $3,000+ in payments I'd made. She said if I wanted to dispute the loan amount I would have to document the bankruptcy, all my payments, etc, and that if I didn't make payment by Oct. 5 the payment would be reported to the CRAs as late.
I tried in good faith to make the payments I owed, I contacted Sallie Mae twice via phone and once via letter and they never mentioned that I shouldn't be paying them, and I never received any communication from CSLF the whole time. She is supposed to mail me a summary of all the payments they received during the bankruptcy.
I don't want to end up being charged interest on the amounts I already paid. I can't afford an attorney. Was it legal for Sallie Mae to cash my checks during that time? Should I call or write CSLF? What should I do?
- What happens to a mortgage if the lender goes bankrupt?
If my home mortgage holder is Countrywide (it is), what happens, in practical terms, if Countrywide were to go bankrupt? Would they call the loan, forcing us to get financing elsewhere to cover it? Or would another lender assume the debt without our having to take any action? Or what?
- which is worse?
Asking for a friend: what's worse on a credit check- unpaid debt or recent bankruptcy? A friend of mine is in the process of filing bankruptcy due to some oppressive credit card debt from high school, a long stretch of unemployment, and some personal issues. He's currently employed, but wants to look elsewhere.
He's wondering if it would be better to apply now, and deal with a credit check with bad debt, or wait until the bankruptcy is done and have that on his record.
So, anyone who does hiring and looks at such things, which would put you off more?
For the record, he's gainfully employed at a start-up, has been promoted twice within the year, but has basically reached as far as he can at the current company short of upper management.
- Should we declare bankruptcy?
Should we declare bankruptcy? My wife and I have been married for almost 1 year. We are currently $76,000 in debt, and it is the cause of all of our stress. We are also both going to be having surgery within the next couple of months, and despite having insurance through my work, we expect to take on another $4,000 - 6,000 in debt. In addition, my wife just lost her job on Friday, and with the upcoming surgery it is looking like it will be until August before she can find another job. Our debt breaks down like this:
$12,300 - Credit Cards
$21,000 - Student Loans
$9,500 - Auto Loan
$33,800 - Unsecured Personal Loans
The total monthly payments for all of this comes out to $1,700. Our basic living expenses (rent, insurance, utility bills) equal out to $875 a month. That means we are paying out $2,575 a month, and my income is only $2,200 a month (after taxes). That puts us at -$375 per month, and we haven't even included groceries and gas yet!
At this point we have not paid any bills late as my wife has just lost her job, but by the end of July we will definitely have to start paying things late, or maybe some things not at all. We could borrow a small amount of money from some of our relatives to help us out if things get really tight, but that will only get us by short term.
I'm sure if my wife gets a decent full-time job ASAP after her surgery we could get back on track and maybe even start paying above the minimum to get us out of debt quicker. The unsecured personal loans were all used to pay off previous credit cards, so we have made some attempts to improve things, and I'd say overall we are better off now than we were last year, but it's beginning to look hopeless to us, and we think we'll never be out of debt. I've posted this anonymously, so I'm not really looking for the moral lecture. If we do declare bankruptcy, we would use this as the fresh start that it was intended, and not make the same mistakes that got us to this point. Our primary concern is that we have a 2 year old, and we want the best life possible for her. It would seem that if we declare bankruptcy we could get back on track much quicker and relatively quickly purchase a decent family car (instead of the truck we have now) and even be on the path to home ownership.
The other thing is we're not even sure if we qualify for bankruptcy at this point. As I said, we haven't paid anything late, but we will be very shortly. We'd rather skip the whole debt collector process if possible and just go straight to bankruptcy.
- Help a friend avoid forclosure tomorrow.
Longshot filter: Need a NY attorney that can file a bankruptcy tomorrow morning due to impending sherrifs auction tomorrow-possible? I Just had someone over who confided in me that her house is scheduled for forclosure here in here in brooklyn ny tomorrow.
Its 10:37 PM here, but im concerned that perhaps the auction is at 9 AM? I am fairly certain i read somewhere (a long time ago) that people declare bankruptcy on the day of the auction?
If anyone knows of a NY attorney that can declare bankruptcy, or if she can file pro-se in the morning?
i looked at the (eastern district of NY) bankruptcy site, but it seems almost impossible for someone to do this themselves.
yeah I know... "why on earch did she wait so long" (usual mefi response:-) )? the answer is, she expected to let the house go- but never recieved notice of the auction (so maybe she should file an order to show cause for no proof)? and now this is where she is at. with her father having had a stroke and serious medical issues going on, i see no reason to rub it in.
anyway... anyone have a NYC lawyer practicing bankruptcy that is could still spoken to tonight.. or early tomorrow?
what time are property auctions on the courthouse steps, anyway? if its noontime or later, that sure would be better.. then they could contact an attorney in the morning to see of anything can be done.
i'll update the thread tomorrow with what happened...
- Lifestyles of the rich and stupid?
What are some of the stupid things rich and famous people have spent their money on? I know about Michael Jackson and his ten AIBOs, for example. What are some other examples? Actors, politicians, athletes, past and present — tell me about their excesses. [This is lazyweb research for a future article.]
- Can this happen in bankruptcy?
If 2nd Mortgage gets discharged in bankruptcy, can payment still be made to keep home? Asking for brother in law, and I know very little about these things. Can one can keep a home under these circumstances? I accept all legal disclaimers on the answers and of course they will consult a lawyer if this moves forward, just needed a general idea of this particular possibility.
- SGI: We're not dead yet!
What happens to the value of a company's stock when they declare banckruptcy and then exit bankruptcy? I used to work for Silicon Graphics. I bought a few shares of stock. The, last May, SGI declared bankruptcy. Now, they're exiting bankruptcy, whatever that means. What happens to my stock? Did it disappear when they declared bankruptcy? I have an Etrade account, but haven't accessed it in years, and don't remember when I last got any mail from them.
- Can I sell a body part?
I can't afford to repay my student loans, entirely my fault, what should I do?
Several years ago I took out education loans from Wells Fargo, loans that I have yet to pay on. I essentially disappeared for several years and now the debt collection agency has caught up with me and is attempting to collect. 3 separate loans, totaling about $55,000. They'll settle the accounts if pay half that amount within the next 30 days . I can't afford to pay this. I can't afford to pay the nearly $1,000 in monthly payments to either.
I also have about $30,000 in Federal student loans, which I pay about $200 a month on, which is also getting to be unaffordable, due to mortgage, car and child payments. Plus I got a notice saying the interest rates were supposed to go, which means more trouble.
My wife an I only make about $50,00 a year, bring home about $2000 total a month after taxes.
Yes, this mess is completely my making and yes I've been remiss in taking care of it. I accept that and realize that much of the rest of my life might be spent paying this off. I'm looking for practical advice on how I can straighten out this, please.
I'm not good with money and all of this is extremely overwhelming to the point I don't know what to do.
Is there someway I can consolidate these loans, either as a whole or partial?
Am I in danger of bankruptcy? The house and car are not in my name, they are in my wife's name, could we lose them? What would bankruptcy mean?
- Help me set Maw up for another 67 years of financial well-being
Forgiving or otherwise reducing Maw's debts?
As a followup to this question, I've arrived at an effective financial mechanism to help me provide for Maw, however while evaluating her overall financial health I learned that she's acquired alarming (given her previous state of relatively low income) debts.
Specifically, at 67 years of age she's never earned more than $18K, but somehow has managed to convince three lenders to front her some $20K in debt. I believe most of this is unsecured, but I haven't seen all the paperwork yet and as a further indication of Maw's lack of financial knowledge she has no idea herself. My current activities have been focused on migrating higher interest rate debt into lower rate facilities, but the final outcome is unsatisfactory even if I can get all of her debts into a secured vehicle.
Clearly it doesn't make any sense for me to be supporting Maw if over one third of her current source of income (Social Security) is absorbed by debt service. I work in banking and just by looking at her age (not to mention low income) consider this an example of irresponsible lending, so what are the options here for debt relief / forgiveness or outright bankruptcy?
Can I negotiate on her behalf? I suspect she'd have to appoint me her financial guardian (of sorts, not sure what this is really called in practise, I'm just aware of the term from BSchool), otherwise these folks won't talk to me. If I do undertake negotiations on her behalf, I'd want to know what my ultimate fall back is so I can play hardball, so does this strike any of you as a clear cut case for bankruptcy?
I've been living in the UK full time since 1998 and for about one year before that I divided my time between New York and London, so I'm more than a little in the dark on these matters back in the US. Any ideas on the path of least resistance? Are these debt counseling services really worthwhile engaging?
I'm not adverse to personally paying off her debts if we could get them reduced somewhat. If this negatively impacts her credit, all the better from my viewpoint as she can't hold onto money. Any suggestions for helping Maw weather another 67 years in improved financial help welcomed.
- Credit Counseling - No More Interest- How?
How do I get my debtors to allow me to pay them off on a payment plan and no further interest charges? I have approximately $400,000 in debt, not including several pieces of real estate.
I have no liquidiy due to family medical issues, but do not want to declare bankruptcy although I have no money "for the short term" (say, 6-9 months) even to make minimum payments.
I want to make a deal with the creditors that I am not running away, that they should close the accounts and not charge any more interst going forward, with low minimum payments to be made until it gets paid off (or for a one year period, lets say.)
I am not concerned about ruining my credit; its ruined itself over the last 3 months.
I do not want to declare bankruptcy either.
How would I do this? is it best to go to a place like BuCCs www.buccs.com? or to do it alone? (using a service would make me only need to pay one bill each month instead of 30?)
or to ignore them until it is 120 days past due and then settle?
or let the bills rise until they write them off?
Besides all other moral concerns about owing the money, I do not want my entire family getting phone calls and would not not particularly love process servers at my door.
Since I am posting this anonymously, let me generously beg y'all kind souls not to take this question off topic or discuss its (im)morality.
yes I am aware that just because a credit cousieling service is "nonprofit" that does not mean they are there to help you. (and yes I am aware that many of these agencies are sponsored by the CC comanies themselves.)
What is the best way to get on a payment plan, while stopping all accruing interest?
My health is being severly ruined by this (headache, stomachahes from stress) and I really want to do this tomorrow....
- How can I dig myself out of this credit card hole?
Given the current economy, would doing a "charge-off" on my credit cards be a reasonable option, and how would I go about doing it for my biggest benefit? Many years ago I had a college credit card that I couldn't afford to pay off. I finally asked about a charge-off on it; about 80% of the card's balance is as low as the company would go. Given that the balance was about $2000 I don't feel the charge-off was really worth it, so I didn't do it.
Soon after that, I bought my first house.
Now however I find myself in much worse credit card debt, nearing $30,000 over a span of 6 cards. The two highest cards have $8,000 balances, and then a few thousand on various other cards. Most of these cards are charging me 30% interest. I have taken a second job, well paying, just to pay off these cards but the interest rates are so high that I just can't seem to make a big dent. Working all of 08 putting all my 2nd job's money to the cards, not using the cards and I'm only in 3k less debt than I was.
I know of some people who told me that they were able to get cards charged off for pennies on the dollar without declaring bankruptcy. I told them it probably hurt their credit, but they were just happy to have the debt gone and credit scores recycle every 7 years anyway...
So I'm reminded of my charge-off experience and that they'd only go t 80%...if I could get even 50% on one of the $8k cards, I could pay that now and save myself so much in interest and use the snowball method to pay down the others...but when I tried last time they just wouldn't go that low.
Complication: My wife and I DO plan to move before the next 7 years, which would involve selling our current house and buying another, so I really DON'T want to nuke my credit where I can't move for 7 years.
Any suggestions on what to do here?
- Are No-Credit Auto Loans No Problem?
Online auto loans; too good to be true? My credit is non-existant, but I need to get a new(er) car. I have a good amount of money for a down payment, but no reputable bank will touch me. However, I just found a number of online auto loan lenders who specialize in bad/no credit/bankruptcy loans.
Obviously, there's no such thing as a free lunch. Just as obviously, I'll likely be hit with a usurious interest rate. I'm OK with that for the time being, but I feel like there's something I'm overlooking.
Any MeFites have experience in this area? Are they a scam or a godsend? Any hidden weirdness I should look out for? Any specific recommendations?
Hard facts and anecdotes are equally welcome.
- Garnished wages can we still settle the debt?
My Mom’s wages are being garnished by a collection agency. Can we still settle the debt? How much do we offer and where do we get the money? My mother’s Ford Fiesta bit the dust a month ago and she needed to get a new car. Her hours have recently been cut at her old job and she has just taken a second job for significantly less money ($7.50/hr versus $10.50/hr). After talking with her I came to the realization that she couldn’t afford to even purchase a reasonable beater for a few grand. I decided that I would help her out with a few hundred bucks and an interest free loan on the condition that I could look at her finances and make sure everything checked out. Here is what I found:
Her monthly income is variable but appears to average about $1000/month +/- $200 (her rent is $480/month).
She has one credit card with a balance of about $1100
She owes a collection agency about $13,000 and they have begun garnishing 25% of her wages at her primary job. The debt comes from a credit card where the original balance was about $6000. She settled with the credit card company but then failed to make the payments and the account sat in collections for a couple of years.
Here are my questions:
Now that the collection agency is garnishing her wages is it too late to settle with them?
If we can settle with the collection agency how much should we offer?
If we do offer to settle, how should we raise the money to pay them off? Will banks make loans to me or my Mom for this purpose?
Should my Mom just file for chapter seven bankruptcy?
We are both located in Michigan. My Mom does not have any significant savings or assets other than a 401k. I have only been out of school for a couple of years so I am still trying to get on my feet. I have good credit and some savings, but not enough to pay for this endeavor unless I borrow against my 401k.
- Is my debt going to ruin my parents' credit?
How will a line of credit that my parents cosigned affect my ability to enter into a debt repayment plan through credit counseling? I've reached a breaking point and I need some help figuring out how I'm going to deal with my debt. I already plan to speak to a credit counseling service and possibly a trustee in bankruptcy next week, but your advice is greatly appreciated. In general, I understand what's going to happen in terms of setting up a repayment plan or a consumer proposal. I'm concerned because part of my debt is an $8000 line of credit that my parents cosigned for me when I was a student.
Is there a way for me to address my debt woes without screwing up my parents' credit? Secondary question: how do you talk to your parents about stuff like this? They're going to be horrified and disappointed in me and it's making me sick thinking about it.
Supporting details: I'm in Canada, I'm 35 and I owe about $45K total ($36K credit cards, 8K line of credit and 3K overdraft). I have no assets and I'm just getting back to work after losing my job a couple of months ago. My parents could almost certainly pay off the line of credit easily... they're pretty well-off, but a little sensitive about money right now because my dad is retiring next year. Our relationship is OK but not fantastic.
Throwaway gmail account is canadiandebtor@gmail.com.
- My bankruptcy dismissed, but so was my debt.
I filed for Chapter 7 bankruptcy(mostly credit card debt) a couple of years ago, and it was dismissed on a technicality (missed a credit counseling class). I was going to refile as soon as I got a call from a creditor, but none of them has ever called me, and it's been 2 years now, and I'm wondering what to do. I just checked my credit score and it shows 0 delinquencies, and the only debt I have is my car payment, which is almost paid off. It also shows a bankcruptcy that was dismissed. What should I do? Just let it ride? What happens if I apply for another credit card, will they see that my bankruptcy was dismissed and hit me with a $20,000 bill? I did everything through a lawyer (who wasn't very good, apparently.)
- Is Alitalia Dead?
What's the latest news on Alitalia? I know they've been struggling badly over the past few years, and there appears to be some new developments in the past day or two. My interest in this is that my parents are currently in Italy, flying back to the US next week. One of their flight segments is on Alitalia, so I'm wondering what the likelihood is that the airline will cease operations (or at least ground some flights). Any thoughts?
- Mortgage Renegotiation
Asking for a friend. She's financially naive, and got stuck with an absolutely terrible loan on her house. She is several months behind on her mortgage payments, and needs to renegotiate the terms of her mortgage. As a result of this and other problems, she has declared bankruptcy. She desperately wants to keep her house, and so far calling the mortgage company has been fruitless.
She's found a company that promises "loan renegotiation services" for the low, low, price of one month's house payment. I cannot find much information on them on the internet, and I'm not sure what a third party can do if the bank is intransigent.
Does anybody have any experience with this type of service? Are they scams, or can they do some good? I'm suspicious because although my friend says that the person that she talked to promised her money back if they weren't able to do the renegotiation, the contract language was so garbled that I told her to get them to rewrite it before she'd sign.
What she wants out of this is to have the amount that she is arrears on her payments added to the principal of the loan. She says that if they do this, she'll be able to make the monthly payments from now on.
This is in California.
- How can I get money I am owed from a UK based employer going bust?
The UK based company I have been working for is going under (I am in the US... I was hired as their Los Angeles based Art Director last November.) They never got the US corporation together so I was always payed as a contractor, month to month, for which I had to invoice them, always with the promise that as soon as they got the US corporation established I would get my pay as a salary with benefits like health insurance. The only binding agreement I had with them was a signed offer letter which set my yearly salary, bonus terms and equity. Without any warning last week they told all their employees (and contract workers like me) that they were out of funding, after they had assured us that the company was fine financially until the end of March, so no one has been paid for February or any of March. So they owe me a lot of money for work I've already done. There is talk now of restructuring the company with an "insolvency practitioner" and doing a CVA (Company Voluntary Arrangement,) all British terms that I am unfamiliar with. I know it is something like bankruptcy. Does anybody know anything about this? Is there any way I can stake my claim so that if this does happen, I am at least in line to get some or all of what is owed to me? Is there something I should be filing, and if so with whom? I am still officially working for them (even though I haven't been doing any work since this whole debacle began about a week ago... there is nothing to do) because I haven't quit and I haven't been officially let go. Can anybody help?
- Gift card and Chapter 7
I have a nontrivial balance on a gift card for a local retailer that has gone out of business and is filing Chapter 7. What are my options? I received a gift card for several hundred dollars to a local bike shop a few months ago and have been slowly using it -- too slowly as it turns out. Over the last few weeks I stopped by a few times trying to make a purchase but the shop was closed even though it was during normal business hours. I didn't think much about it because all the inventory was still there and I assumed it was probably a personal situation or something.
I finally tried calling and found that their phone was disconnected, and then I found their web site dead too. Through Google and archive.org I was able to find the owners' names and email addresses. I sent a polite inquiry about how to liquidate my balance and received no reply. After further research I found one owner's phone number and spoke to her this afternoon. She told me that they were going through Chapter 7 (it wasn't clear to me if they've filed yet) and that she had forwarded my email to their attorney.
I got their attorney's contact information and am waiting for him to return my call, but I would like to know what my prospects are for recovering the balance and if anyone can recommend a strategy to improve them.
This is in Sonoma County, California. Thanks!
- It's not mine, I swear!
Creditors are starting to harass me again for old debt that I don't believe I'm responsible for. I divorced back in 2003. In the settlement, my ex-husband and I were each assigned a handful of credit accounts. I paid mine off, he filed a chapter 13 bankruptcy. Two credit agencies are now contacting me about (2 different) credit card debts, both of which are the responsibility of my ex-husband according to the divorce settlement.
I have a copy of the bankruptcy matrix which lists both of the credit accounts. I've faxed the matrix and copies of the divorce settlement to both credit agencies but both say that since I was the primacy cardholder, that I'm responsible for the account.
My ex-husband and I are no longer in contact, although I do have his cellphone number (but he refuses to discuss this issue). Creditors are not interested in contacting him. In the meantime, my credit rating continues to suffer with these 2 bad debts on my report.
I have the bankruptcy matrix, the case number, and the name of the lawyer that handled the bankruptcy (although he refuses to give me any information about the case). What do I do now? I live in Kansas, if that matters.
- How much will a bankruptcy cost?
How much should a personal bankruptcy cost in Michigan? I know that bankruptcy is not a good idea and believe me I have exhausted all other options. I am going to file a Chapter 13 bankruptcy which includes me and my wife. One attorney that does television advertising in my area told me over the phone that my only out of pocket cost would be $594.00. I have heard from a few other people that this type of thing should cost around $2000. Unfortunately, no other attorney will give me any type of price without an in person consultation. I just want to know what the ball park price for this is going to be and also if anyone has any experience with a reputable bankruptcy attorney in the Metro Detroit area.
- Looking for public companies that have turned the page after Chapter 11...
I'm looking for two reliable, often-updated list of publicly-traded companies that 1) have just filed for bankruptcy; or 2) are re-emerging from bankruptcy protection. Any clues? I'm sure there are some out there, but my google-fu has failed me. The NYTimes section on Bankruptcies has some information, but you have to sort through alot of noise to find anything useful.
Specifically, I am looking for either a US or Canadian list of either of the aforementioned, but I wouldn't frown on both. Thanks!
- What will happen if my bank goes bankrupt?
What will happen to my money if E*Trade declares bankruptcy? I have a few bank account elsewhere, but the majority of my money is help in various E*trade accounts. This includes checking, savings, brokerage, and CDs. I'm aware that the money in the banking arm is FDIC insured, but what does that really mean? Is all of my money insured? Will it all go away if E*Trade goes under?
Any sort of real world explanations and advice would be appreciated.
- Will bankruptcy absolve you of tax debt?
Will filing for bankruptcy absolve you of tax debt? I owe a lot of money in back taxes, in addition to some other extremely large financial burdens that I won't get into now. The debt is from 2003 and 2004. I set up a payment program with the IRS and have kept up with the payments for about a year now. Now I'm on the brink of other financial difficulties and wondering if Chapter 7 will get rid of my tax debts as well. Even a bankruptcy lawyer I spoke with wasn't sure! The laws changed in 2005 and nobody seems to know what's going on now!
- What to do about student loan payments misdirected during Chapter 13 bankruptcy?
I made $3,000 in payments on my student loan during my Chapter 13 bankruptcy, but they were not applied to my loan balance. What should I do? I just had a chapter 13 bankruptcy discharged successfully after 3 years. When I filed chapter 13, the trustee told me to continue making payments on my student loan. I had been paying about $100/month to Sallie Mae. On finding I could no longer access my Sallie Mae account online, I called them to find out what they wanted me to do. The representative told me they couldn't bill me since I was in bankruptcy, but gave me the address where I could send my payments, and told me to write my SS# on the checks so they'd know where to apply the payments. I made the payments every month by check, and they cashed them.
Last February I checked my credit reports and found they showed the loans had zero balance, with a claim filed with the government. I called Sallie Mae again to find out what my balance was. I spoke to a rep in India, and he told me it was paid in full. I sent a letter to Sallie Mae requesting an accounting of the activity on my account since the bankruptcy was filed, and stated that per their rep saying the loan was paid in full I would send no more payments until I received such documentation. I never received anything in return.
Last week I got a letter from Sallie Mae stating my payments were to resume now that the bankruptcy was over, as of October 5th. The total balance on the loan did not reflect any of the approximately $3,000 I had sent them during the bankruptcy! I called them, and after going through a guy in India, a rep in the US, and her supervisor, I was told they sold the loan to the guarantor (Connecticut Student Loan Foundation) as soon as the Ch. 13 was filed, and that I had been supposed to pay CSLF the whole time. She said they'd been forwarding the money on to CSLF. Now that the bankruptcy was over, CSLF had sold the loan back to Sallie Mae, but without reflecting any of the $3,000+ in payments I'd made. She said if I wanted to dispute the loan amount I would have to document the bankruptcy, all my payments, etc, and that if I didn't make payment by Oct. 5 the payment would be reported to the CRAs as late.
I tried in good faith to make the payments I owed, I contacted Sallie Mae twice via phone and once via letter and they never mentioned that I shouldn't be paying them, and I never received any communication from CSLF the whole time. She is supposed to mail me a summary of all the payments they received during the bankruptcy.
I don't want to end up being charged interest on the amounts I already paid. I can't afford an attorney. Was it legal for Sallie Mae to cash my checks during that time? Should I call or write CSLF? What should I do?
- What happens to a mortgage if the lender goes bankrupt?
If my home mortgage holder is Countrywide (it is), what happens, in practical terms, if Countrywide were to go bankrupt? Would they call the loan, forcing us to get financing elsewhere to cover it? Or would another lender assume the debt without our having to take any action? Or what?
- which is worse?
Asking for a friend: what's worse on a credit check- unpaid debt or recent bankruptcy? A friend of mine is in the process of filing bankruptcy due to some oppressive credit card debt from high school, a long stretch of unemployment, and some personal issues. He's currently employed, but wants to look elsewhere.
He's wondering if it would be better to apply now, and deal with a credit check with bad debt, or wait until the bankruptcy is done and have that on his record.
So, anyone who does hiring and looks at such things, which would put you off more?
For the record, he's gainfully employed at a start-up, has been promoted twice within the year, but has basically reached as far as he can at the current company short of upper management.
- Should we declare bankruptcy?
Should we declare bankruptcy? My wife and I have been married for almost 1 year. We are currently $76,000 in debt, and it is the cause of all of our stress. We are also both going to be having surgery within the next couple of months, and despite having insurance through my work, we expect to take on another $4,000 - 6,000 in debt. In addition, my wife just lost her job on Friday, and with the upcoming surgery it is looking like it will be until August before she can find another job. Our debt breaks down like this:
$12,300 - Credit Cards
$21,000 - Student Loans
$9,500 - Auto Loan
$33,800 - Unsecured Personal Loans
The total monthly payments for all of this comes out to $1,700. Our basic living expenses (rent, insurance, utility bills) equal out to $875 a month. That means we are paying out $2,575 a month, and my income is only $2,200 a month (after taxes). That puts us at -$375 per month, and we haven't even included groceries and gas yet!
At this point we have not paid any bills late as my wife has just lost her job, but by the end of July we will definitely have to start paying things late, or maybe some things not at all. We could borrow a small amount of money from some of our relatives to help us out if things get really tight, but that will only get us by short term.
I'm sure if my wife gets a decent full-time job ASAP after her surgery we could get back on track and maybe even start paying above the minimum to get us out of debt quicker. The unsecured personal loans were all used to pay off previous credit cards, so we have made some attempts to improve things, and I'd say overall we are better off now than we were last year, but it's beginning to look hopeless to us, and we think we'll never be out of debt. I've posted this anonymously, so I'm not really looking for the moral lecture. If we do declare bankruptcy, we would use this as the fresh start that it was intended, and not make the same mistakes that got us to this point. Our primary concern is that we have a 2 year old, and we want the best life possible for her. It would seem that if we declare bankruptcy we could get back on track much quicker and relatively quickly purchase a decent family car (instead of the truck we have now) and even be on the path to home ownership.
The other thing is we're not even sure if we qualify for bankruptcy at this point. As I said, we haven't paid anything late, but we will be very shortly. We'd rather skip the whole debt collector process if possible and just go straight to bankruptcy.
- Help a friend avoid forclosure tomorrow.
Longshot filter: Need a NY attorney that can file a bankruptcy tomorrow morning due to impending sherrifs auction tomorrow-possible? I Just had someone over who confided in me that her house is scheduled for forclosure here in here in brooklyn ny tomorrow.
Its 10:37 PM here, but im concerned that perhaps the auction is at 9 AM? I am fairly certain i read somewhere (a long time ago) that people declare bankruptcy on the day of the auction?
If anyone knows of a NY attorney that can declare bankruptcy, or if she can file pro-se in the morning?
i looked at the (eastern district of NY) bankruptcy site, but it seems almost impossible for someone to do this themselves.
yeah I know... "why on earch did she wait so long" (usual mefi response:-) )? the answer is, she expected to let the house go- but never recieved notice of the auction (so maybe she should file an order to show cause for no proof)? and now this is where she is at. with her father having had a stroke and serious medical issues going on, i see no reason to rub it in.
anyway... anyone have a NYC lawyer practicing bankruptcy that is could still spoken to tonight.. or early tomorrow?
what time are property auctions on the courthouse steps, anyway? if its noontime or later, that sure would be better.. then they could contact an attorney in the morning to see of anything can be done.
i'll update the thread tomorrow with what happened...
- Lifestyles of the rich and stupid?
What are some of the stupid things rich and famous people have spent their money on? I know about Michael Jackson and his ten AIBOs, for example. What are some other examples? Actors, politicians, athletes, past and present — tell me about their excesses. [This is lazyweb research for a future article.]
- Can this happen in bankruptcy?
If 2nd Mortgage gets discharged in bankruptcy, can payment still be made to keep home? Asking for brother in law, and I know very little about these things. Can one can keep a home under these circumstances? I accept all legal disclaimers on the answers and of course they will consult a lawyer if this moves forward, just needed a general idea of this particular possibility.
- SGI: We're not dead yet!
What happens to the value of a company's stock when they declare banckruptcy and then exit bankruptcy? I used to work for Silicon Graphics. I bought a few shares of stock. The, last May, SGI declared bankruptcy. Now, they're exiting bankruptcy, whatever that means. What happens to my stock? Did it disappear when they declared bankruptcy? I have an Etrade account, but haven't accessed it in years, and don't remember when I last got any mail from them.
- Can I sell a body part?
I can't afford to repay my student loans, entirely my fault, what should I do?
Several years ago I took out education loans from Wells Fargo, loans that I have yet to pay on. I essentially disappeared for several years and now the debt collection agency has caught up with me and is attempting to collect. 3 separate loans, totaling about $55,000. They'll settle the accounts if pay half that amount within the next 30 days . I can't afford to pay this. I can't afford to pay the nearly $1,000 in monthly payments to either.
I also have about $30,000 in Federal student loans, which I pay about $200 a month on, which is also getting to be unaffordable, due to mortgage, car and child payments. Plus I got a notice saying the interest rates were supposed to go, which means more trouble.
My wife an I only make about $50,00 a year, bring home about $2000 total a month after taxes.
Yes, this mess is completely my making and yes I've been remiss in taking care of it. I accept that and realize that much of the rest of my life might be spent paying this off. I'm looking for practical advice on how I can straighten out this, please.
I'm not good with money and all of this is extremely overwhelming to the point I don't know what to do.
Is there someway I can consolidate these loans, either as a whole or partial?
Am I in danger of bankruptcy? The house and car are not in my name, they are in my wife's name, could we lose them? What would bankruptcy mean?
- Help me set Maw up for another 67 years of financial well-being
Forgiving or otherwise reducing Maw's debts?
As a followup to this question, I've arrived at an effective financial mechanism to help me provide for Maw, however while evaluating her overall financial health I learned that she's acquired alarming (given her previous state of relatively low income) debts.
Specifically, at 67 years of age she's never earned more than $18K, but somehow has managed to convince three lenders to front her some $20K in debt. I believe most of this is unsecured, but I haven't seen all the paperwork yet and as a further indication of Maw's lack of financial knowledge she has no idea herself. My current activities have been focused on migrating higher interest rate debt into lower rate facilities, but the final outcome is unsatisfactory even if I can get all of her debts into a secured vehicle.
Clearly it doesn't make any sense for me to be supporting Maw if over one third of her current source of income (Social Security) is absorbed by debt service. I work in banking and just by looking at her age (not to mention low income) consider this an example of irresponsible lending, so what are the options here for debt relief / forgiveness or outright bankruptcy?
Can I negotiate on her behalf? I suspect she'd have to appoint me her financial guardian (of sorts, not sure what this is really called in practise, I'm just aware of the term from BSchool), otherwise these folks won't talk to me. If I do undertake negotiations on her behalf, I'd want to know what my ultimate fall back is so I can play hardball, so does this strike any of you as a clear cut case for bankruptcy?
I've been living in the UK full time since 1998 and for about one year before that I divided my time between New York and London, so I'm more than a little in the dark on these matters back in the US. Any ideas on the path of least resistance? Are these debt counseling services really worthwhile engaging?
I'm not adverse to personally paying off her debts if we could get them reduced somewhat. If this negatively impacts her credit, all the better from my viewpoint as she can't hold onto money. Any suggestions for helping Maw weather another 67 years in improved financial help welcomed.
- Credit Counseling - No More Interest- How?
How do I get my debtors to allow me to pay them off on a payment plan and no further interest charges? I have approximately $400,000 in debt, not including several pieces of real estate.
I have no liquidiy due to family medical issues, but do not want to declare bankruptcy although I have no money "for the short term" (say, 6-9 months) even to make minimum payments.
I want to make a deal with the creditors that I am not running away, that they should close the accounts and not charge any more interst going forward, with low minimum payments to be made until it gets paid off (or for a one year period, lets say.)
I am not concerned about ruining my credit; its ruined itself over the last 3 months.
I do not want to declare bankruptcy either.
How would I do this? is it best to go to a place like BuCCs www.buccs.com? or to do it alone? (using a service would make me only need to pay one bill each month instead of 30?)
or to ignore them until it is 120 days past due and then settle?
or let the bills rise until they write them off?
Besides all other moral concerns about owing the money, I do not want my entire family getting phone calls and would not not particularly love process servers at my door.
Since I am posting this anonymously, let me generously beg y'all kind souls not to take this question off topic or discuss its (im)morality.
yes I am aware that just because a credit cousieling service is "nonprofit" that does not mean they are there to help you. (and yes I am aware that many of these agencies are sponsored by the CC comanies themselves.)
What is the best way to get on a payment plan, while stopping all accruing interest?
My health is being severly ruined by this (headache, stomachahes from stress) and I really want to do this tomorrow....
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