- This topic has 7 replies, 1 voice, and was last updated March 17, 2008 at 10:40 pm by .
- March 17, 2008 at 10:40 pm #256671
Iâ€™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
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,
weâ€™ve had some contact, but Iâ€™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 Iâ€™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 â€œcashâ€ 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,
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.
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