Credit card debt | Imamother

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Credit card debt

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amother

Sat, Jan 11 2020, 10:57 pm

Hi, I know this has been discussed before, but I really need some advice. I have a huge amount of cc debt, over six figures. I looked into debt settlements with the credit card companies. I even met with an agency that would help me settle. The problem is that I don't know how I will come up with the lump sum of money that I need when I make a deal with the credit card companies? My husband and I both work, but I don't think we could put away enough money when it's time to settle. I thought about taking out a loan from the gemach. But I don't have anyone that would co sign for me. Any ideas?

amother

Brunette

Sat, Jan 11 2020, 11:32 pm

amother [ OP ] wrote:

Did you speak to the agency about the option of defaulting? Once you default they'll settle for 10%-20% instead of 50%-60%, and give a nice payment plan. Do you own a house or have any assets they can come after if you declare bankruptcy? How much is your credit worth to you? (Charge offs and bankruptcies fall off after 7 years, although you may be burnt with any individual financial institution that you default on for life.) There are some gray area tactics you can utilize to generate the short term cash pre default and get a generous settlement plan - when you speak to the agencies that specialize in this, let them know that they should lay out all options on the table, and then speak to a Rav to find out what's ok.

ellacoe

Sat, Jan 11 2020, 11:45 pm

Also to add to the above comment, it is possible that you both don't have to go bankrupt. It may be possible for only of you to.

Is the debt all cc debt? Bankruptcy will not absolve money that you owe to the IRS or student debt.

chayamiriam

Sat, Jan 11 2020, 11:53 pm

Declare bankruptcy thats what its there for. Call a good attorney you won't have to put out tons of money that is just wasted!

amother

Ecru

Sun, Jan 12 2020, 12:19 am

I know someone who setting for about 20% recently and got a 12 month payment plan.

amother

Cerulean

Sun, Jan 12 2020, 12:37 am

amother [ Brunette ] wrote:

Not true. Amex has a policy of 80%.
Capital One as well.
The 10-20% was an old thing. Not done today.

OP, have you looked into BK?

amother

Cerulean

Sun, Jan 12 2020, 12:37 am

amother [ Ecru ] wrote:

I know someone who setting for about 20% recently and got a 12 month payment plan.

Depends on the card and the situation..

amother

Sun, Jan 12 2020, 9:06 am

Thanks for all your replies. I would try to settle, but again the issue is coming up with a lump sum of money to pay the credit card companies when I do settle. Do they let a payment plan? Does anyone know for sure?

amother

Sun, Jan 12 2020, 9:07 am

Also, I would think of bankruptcy, but I'm afraid of losing my house (I own) and cars. Does anyone know if the credit cards can come after me for those things?

amother

Sun, Jan 12 2020, 9:08 am

The debt is all Credit card related. Does anyone have a good lawyer who does bankruptcy?

happy12

Sun, Jan 12 2020, 9:10 am

Please be aware if you settle the debt, the write off amount may be taxable as income and you may then have an additional hefty bill with the IRS.

amother

Blue

Sun, Jan 12 2020, 9:13 am

amother [ OP ] wrote:

Also, I would think of bankruptcy, but I'm afraid of losing my house (I own) and cars. Does anyone know if the credit cards can come after me for those things?

Speak to a bankruptcy attorney. Your house may not be on the table depending on your jurisdiction and how it is titled.

amother

Sun, Jan 12 2020, 9:16 am

I know, I'm nervous about settling because of that. I'm leaning toward bankruptcy. Any downsides that I should know about?

chayamiriam

Sun, Jan 12 2020, 10:45 am

Google Jacob Silver has tons of experience

ellacoe

Sun, Jan 12 2020, 10:48 am

amother [ OP ] wrote:

The debt is all Credit card related. Does anyone have a good lawyer who does bankruptcy?

Wayne Greenwald.

amother

Goldenrod

Sun, Jan 12 2020, 10:56 am

amother [ OP ] wrote:

Also, I would think of bankruptcy, but I'm afraid of losing my house (I own) and cars. Does anyone know if the credit cards can come after me for those things?

One of my friends did this (she settled for less) and one of the credit card companies put a lien on her house. I think it was Discover. Please go into this with your eyes wide open and get the best advice as to how to do this.

33055

Sun, Jan 12 2020, 11:02 am

amother [ OP ] wrote:

I know, I'm nervous about settling because of that. I'm leaning toward bankruptcy. Any downsides that I should know about?

Larry Klein - smartest debtor creditor lawyer I ever met.

amother

Royalblue

Sun, Jan 12 2020, 11:31 am

Bankruptcy will affect you for 7 years, so will judgements.

We used a company called Greenpath, we did a payment plan, We paid over around 4 years. They negotiated interest rates and charged $50 a month.

We had no long term impact on our credit.

This was about 10 years ago, so no recent information.

galbis

Sun, Jan 12 2020, 1:13 pm

You can try calling American Consumer Credit Counseling. They negotiate better interest rates with the credit card companies and then set up a payment plan. 800 769 3571 or consumercredit.com

Sake

Sun, Jan 12 2020, 1:21 pm

amother [ OP ] wrote:

Also, I would think of bankruptcy, but I'm afraid of losing my house (I own) and cars. Does anyone know if the credit cards can come after me for those things?

. Why shouldn’t they? You took the money, you spent the money. Why should you not have to pay back the money? I’f you can’t afford a house and cars, don’t buy a house and cars.

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