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Thread: Hello, Dan here

  1. #1
    Danny
    Guest

    Default Hello, Dan here

    Dear Group:



    I’m Dan. I was hoping some of you might have some suggestions on how

    I can best deal with my debt. I am very confused, and am scared.



    I had $50k in credit card debt before becoming disabled a few years

    ago, drastically effecting my income. Long story short: My

    creditors, 9 of them, were not interested in helping make it easier

    for me to pay down the debt on terms I could afford, and today, that

    $50k is now over $91k with penalties, vicious interest rates, and

    attorney fees.



    A year ago, to avoid a nervous breakdown, I hired an attorney to

    handle this for me as I was really on the verge of losing my mind. He

    very quickly settled one $9k debt for $3500 (about 38% of the

    escalated debt, and closer to what I originally owed). Since then,

    we’ve had some contact, but I’ve come to realize that he has done

    nothing more than settling that one debt, and judgments and missed

    deadlines have been rolling in.



    In a panic, I had a consult with a bankruptcy attorney today, ready to

    file for bankruptcy just to have this misery over, but he advised I

    would not qualify due to a little more equity in my home than I am

    allowed. He agreed to take my case but advised that I could likely

    settle my debts directly with my creditors and achieve the same

    results that he or another attorney would. And so I guess this is

    what I’m going to try to do.



    Does anyone have any advice on how to deal with these creditors or

    their collection people. I am on permanent Social Security

    Disability; my income is and has been less than my expenses, and I do

    not intend to sell my home any time in the near future as I will

    likely not qualify for another mortgage given the circumstances and my

    now-poor credit. My only “cash” asset is a retirement account with

    around $10k in it. However, I do have a sister who is willing to lend

    me some cash if I can settle with these creditors, and 30-35% of the

    $91k is about what this loan will cover. Is it reasonable to expect

    any of them to settle for that?



    I also am considering using a debt consolidation service, despite that

    I have not heard positive things in general about them. The reason I

    am considering this is because I would rather take the loan from my

    sister and put it toward getting my ailing house into good repair, and

    use whatever is left over to invest and pay down the debt with the

    income it would produce.



    Thank for listening, and much Gratitude in advance for your help,



    Dan



    PS: One more question: My original attorney had told me that the

    creditors who have liens on my home will not be willing to make

    settlements, but the attorney today told me this is not true. Does

    anyone have experience with this? Thanks again..Dan.










  2. #2
    Donna Shad
    Guest

    Default Hello, Dan here

    Dan,

    If you call and speak to someone at the credit agency

    and explain to them your situation you will probably

    get somewhere. REmember that something is better than

    nothing. Maybe you could say something in the lines of

    "I can afford to pay you $xx.xx per month or $xxx.xx

    in total but that is all I can do. I will have to

    borrow that as well. But in return no more interst and

    this is in full settlement."

    Get everything in writting. Filing bankrupcy could

    cost you your house. The laws have changed

    drastically. It is harder for people to file for

    bankrupcy.

    Try getting a consolidation loan (if possible) to

    cover your settlement amounts. That would be better

    than borrowing from your sister. Trust me. My brother

    borrowed money from me and hasn't paid it back. It has

    put strain on our relationship. I won't help him

    again.

    There are free credit councing centers that you might

    want to check out as well. Also if any are in

    collection (I am sure there are since some have

    attorneys involved) contact the collection agency and

    see what it would take to settle. They can sometimes

    get what you can't get approved.

    This is a deep hole you have doug yourself into it

    will take a lot of hard work and time to get it

    straightend out. In about 10 years (after all is paid)

    your credit will be getting better. The first thing to

    do is to make sure that your house is not getting a

    lein on it. Have the attorney do an abstract to make

    sure there is no lein.

    Unfortunatly you may have to borrow some money from

    your sister as you may need some research done that

    could cost some money but keep it limited and make

    sure that you pay her back. (even if it's ten dollars

    a month)

    Also have you been paying your creditors? Even a

    couple dollars a month shows good faith. They would be

    more willing to work with you if there is some form of

    good faith.

    take care

    Donna









    __________________________________________________ ______________________________\

    ____

    Be a better friend, newshound, and

    know-it-all with Yahoo! Mobile. Try it now.










  3. #3
    Dan N.
    Guest

    Default Hello, Dan here

    Thanks for your reply, Donna. In response:

    <span style="font-style: italic;">>> you could say something in the lines of "I can afford to pay you $xx.xx per month or $xxx.xx in total but that is all I can do. I will have to borrow that as well. But in return no more interst and this is in full settlement." <<

    This is on the lines of what I had in mind. Thanks for concurring.


    <span style="font-style: italic;">>> Filing bankrupcy could cost you your house. <<

    After a consult with a bankruptcy attorney, I am not going for bankruptcy. Although according to him that might have been an option had my previous attorney advised me correctly. You live, you learn.


    <span style="font-style: italic;">>> There are free credit councing centers that you might want to check out as well. <<

    I certainly will do that when I locate them. Thanks.

    <br style="font-style: italic;"><span style="font-style: italic;">>> In about 10 years (after all is paid) your credit will be getting better. <<

    Wow, 10 years, huh? That's mind-boggling. I had perfect credit prior to this financial disaster. Amazing how fast things can deteriorate, and how long it can take to recover. Sobering.


    <span style="font-style: italic;">>> first thing to do is to make sure that your house is not getting a lein on it. <<

    It already has several. This is why I'm so upset with this lawyer. He said they could be reversed and then the accounts settled, and while I thought he was working on this for the past several months, he apparently did absolutely nothing. Another lesson learned, you've got to stay on top of your attorneys.


    <span style="font-style: italic;">>> Also have you been paying your creditors?
    <<

    The two accounts I <span style="font-style: italic;">had been paying on, I stopped when I hired the lawyer, at his advice. He said if I continued paying, they would never cut a deal with him.


    Thanks again for your advice. I can only move forward at this point and try to make up for my mistakes and the mistakes of my lousy attorney.

    Best,

    Dan



    &#32;



  4. #4
    lisa griffeth
    Guest

    Default Hello, Dan here

    Dan, If I remember correctly you mentioned your sister could help you witha loan...couldshe purchase your house instead? If you could get the liens off the house, she might be able to secure your home by purchasing it on paper. Don't know the particulars of how it would work (or if it would work in yourcircumstances) but a friend of mine bought/took over her brother's house to keep him from losing it- it's in her name until he can get a job and "buy" it back from her, but he's still living in it for now. Just a thought- Lisa G.



    &#32;
    Be a better friend, newshound, and know-it-all with Yahoo! Mobile. [/url] "] Try it now.[/url]


  5. #5
    Donna Shad
    Guest

    Default Hello, Dan here

    Dan,

    It is hard to come back after finaciall difficulties. After

    getting all the accounts settled you might want to take a break

    for about a year and then start the long climb uphill to

    resestablish credit. The sooner you do this the better it will

    be for you in the long run. Leins and judgements stay on the

    credit report for 10 years (as I understand it) even though they

    are paid off. Defaulted student loans also will haunt you the

    rest of your days. Can't get them off. If you are paying an

    attorney expect him to give you at least a bi-weekly update even

    if he just calls and says I'm waiting for returned calles but in

    truth you'll get just as far as he will.

    The only reason to have an attorney to handle this is to keep

    you from doing the work. But believe me most times you can get

    further than the attorney. It is hard to tell the customer (even

    one that owes them money) that they won't settle it. Collections

    cost money to the company. It's better to get something than to

    get nothing.

    Now the important part is to learn something from all this. It's

    hard to get out of debt so if it is not life essential don't use

    credit to buy. We bought our son a car at an auction (I have

    bought 1 new car in my 42 years of life and won't do that

    again). I pay cash for 95 percent of my purchases. The only time

    I use a credit card is on the internet (when I order a part or

    some specialty item) then a check goes out the next day. Or

    college tuition which get's paid back before the next symester.

    (the school charges more for financing than American Express) I

    am assuming that the majority of your creditor that you are in

    default with are credit card companies. They are the easiest to

    work with. They will have a special department for you to speak

    with all you have to do is call the number on the card and ask

    to speak with the default department.

    If it is student loans it could be even worse (they will

    attached all your property and they will seize the property.

    They can force you into bankrupcy which their debt will not be

    removed. You can't get out of that one. But you could set up a

    new schedule of payment that better fits your current budge.

    If it is places like phone companies, cable companies ect you

    will just have to dwindle down the amounts. Cell phone companies

    will usually settle for half of the bill plus a cancellation fee

    but it will depend on how you paid before.

    Make a list of all the creditors you need to contact. Get phone

    numbers and account numbers and start making the phone calls. It

    will be uncomfortable but it can be done. If you find resistance

    that is when I would involve a credit counciling service or an

    attorney.

    Take care

    Good Luck

    Donna







    __________________________________________________ ______________________________\

    ____












  6. #6
    Dan N.
    Guest

    Default Hello, Dan here

    Hi Lisa,

    I've thought about something like this. The thing is that I already have liens on the house, and I don't know how I'd get them off in order to "sell" the house to my sister. Neither lawyer I've seen has mentioned this is possible, other than actually paying the debt that created the lien.

    Thanks,

    Dan


    lisa griffeth <apiamama@yahoo.com> wrote: Dan, If I remember correctly you mentioned your sister could help you witha loan...couldshe purchase your
    house instead? If you could get the liens off the house, she might be able to secure your home by purchasing it on paper. Don't know the particulars of how it would work (or if it would work in yourcircumstances) but a friend of mine bought/took over her brother's house to keep him from losing it- it's in her name until he can get a job and "buy" it back from her, but he's still living in it for now. Just a thought- Lisa G.

    Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now. [/quote]


    &#32;
    Be a better friend, newshound, and know-it-all with Yahoo! Mobile. [/url] "] Try it now.[/url]


  7. #7
    Dan N.
    Guest

    Default Hello, Dan here

    Thanks for all the good advice Donna.

    Yes, it's ALL credit card debt. But some of the accounts have been "sold" so I wouldn't even be dealing with the original creditor. I'm going to see how far I can get on my own. Wish me luck.

    Best,

    Dan


    Donna Shad <sdbmshad@yahoo.com> wrote: Dan,
    It is hard to come back after finaciall difficulties. After
    getting all the accounts settled you might want to take a break
    for about a year and then start the long climb uphill to
    resestablish credit. The
    sooner you do this the better it will
    be for you in the long run. Leins and judgements stay on the
    credit report for 10 years (as I understand it) even though they
    are paid off. Defaulted student loans also will haunt you the
    rest of your days. Can't get them off. If you are paying an
    attorney expect him to give you at least a bi-weekly update even
    if he just calls and says I'm waiting for returned calles but in
    truth you'll get just as far as he will.
    The only reason to have an attorney to handle this is to keep
    you from doing the work. But believe me most times you can get
    further than the attorney. It is hard to tell the customer (even
    one that owes them money) that they won't settle it. Collections
    cost money to the company. It's better to get something than to
    get nothing.
    Now the important part is to learn something from all this. It's
    hard to get out of debt so if it is not life essential don't use

    credit to buy. We bought our son a car at an auction (I have
    bought 1 new car in my 42 years of life and won't do that
    again). I pay cash for 95 percent of my purchases. The only time
    I use a credit card is on the internet (when I order a part or
    some specialty item) then a check goes out the next day. Or
    college tuition which get's paid back before the next symester.
    (the school charges more for financing than American Express) I
    am assuming that the majority of your creditor that you are in
    default with are credit card companies. They are the easiest to
    work with. They will have a special department for you to speak
    with all you have to do is call the number on the card and ask
    to speak with the default department.
    If it is student loans it could be even worse (they will
    attached all your property and they will seize the property.
    They can force you into bankrupcy which their debt will not be
    removed. You can't
    get out of that one. But you could set up a
    new schedule of payment that better fits your current budge.
    If it is places like phone companies, cable companies ect you
    will just have to dwindle down the amounts. Cell phone companies
    will usually settle for half of the bill plus a cancellation fee
    but it will depend on how you paid before.
    Make a list of all the creditors you need to contact. Get phone
    numbers and account numbers and start making the phone calls. It
    will be uncomfortable but it can be done. If you find resistance
    that is when I would involve a credit counciling service or an
    attorney.
    Take care
    Good Luck
    Donna

    __________________________________________________ ________


    [/quote]


    &#32;



  8. #8
    Donna Shad
    Guest

    Default Hello, Dan here

    Dan,

    You call the company that has the Lein on the house and find out

    what they will settle for. If they are not willing to settle

    then you will have to pay them off. They can force you to sell

    they house to settle the debt. Take care of those with leins

    first.

    Donna

    --- "Dan N." <furyinmysoul@yahoo.com> wrote:



    > Hi Lisa,

    >

    > I've thought about something like this. The thing is that I

    > already have liens on the house, and I don't know how I'd get

    > them off in order to "sell" the house to my sister. Neither

    > lawyer I've seen has mentioned this is possible, other than

    > actually paying the debt that created the lien.

    >

    > Thanks,

    >

    > Dan

    >

    >

    > lisa griffeth <apiamama@yahoo.com> wrote:

    >

    > Dan,

    >

    > If I remember correctly you mentioned your sister could help

    > you with a loan...could she purchase your house instead? If

    > you could get the liens off the house, she might be able to

    > secure your home by purchasing it on paper. Don't know the

    > particulars of how it would work (or if it would work in your

    > circumstances) but a friend of mine bought/took over her

    > brother's house to keep him from losing it- it's in her name

    > until he can get a job and "buy" it back from her, but he's

    > still living in it for now.

    >

    > Just a thought-

    > Lisa G.

    >

    >

    >

    >

    > ---------------------------------

    > Be a better friend, newshound, and know-it-all with Yahoo!

    > Mobile. Try it now.

    >

    >

    >

    >

    > ---------------------------------

    > Be a better friend, newshound, and know-it-all with Yahoo!

    > Mobile. Try it now.









    __________________________________________________ ______________________________\

    ____

    Be a better friend, newshound, and

    know-it-all with Yahoo! Mobile. Try it now.








 

 
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