Hey, I work at a bankruptcy firm, I file them everyday! If you have any questions, just let me know. It can be a great way to get a fresh start…
I’m trying debt settlement before going to bankruptcy. It is cheaper and easier if the creditors cooperate and you don’t have your life controlled by a bankruptcy trustee. In addition you probably don’t need an attorney. In addition if you are able to pay your secured debt you probably can keep that property. The downside is you got to be legally savvy enough to work with the settlement company or your creditors if you do it without a settlement company. If this doesn’t work and I get sued and can’t settle the lawsuit I will have file for Chapter 13 bankruptcy.
My husband and I filed bankruptcy in 1999. The laws have changed since then so our experience will be a little different but I didn’t find it to be horrible. We had nothing so maybe that was the difference.
My husband lost his job and I just couldn’t keep up with everything with my tiny paycheck. So, we filed. It was a last ditch effort but I really think it was our only option. I tried working with the companies but it got to the point where we couldn’t even pay rent and utilities. I sure didn’t have an extra $20 to send to anyone.
After our bankruptcy was discharged, we didn’t notice anything different. We had horrible credit before so that wasn’t anything new. We had no problems renting an apartment. I even bought a car two months after discharge.
We’re back on our feet now…bought our first house last summer. Hubby and I both have cars that are financed. That’s it though – no more credit cards And, I’m working on getting the cars paid off.
I think if you honestly can’t see a way out or have no money to send to these folks, bankruptcy is an option. I know we owed money to these people, but we just flat didn’t have it.
Good luck with whatever you decide!
I also filed bankruptcy a few years ago. I did it myself. I bought a book and followed the instructions. I think it included the forms you need to file too. Overall, it was pretty simple. Since you only have credit card debt, you may be able to do it yourself. Just be careful, not to charge anything else on your credit card. They look closely at your charges from the recent months.
As for harrassing collectors. I recently became unemployed and medical bill collectors are calling me every day. I do make very small payments compared to wehn I was working. With each payment I include a ‘form’ letter saying that I am unemployed at the moment. End- no further discussion. No need to need to talk to collectors on the phone.
I am also working with a Debt Settlement Company. I have been working with them since May 2007. I am still getting telephone calls from collections agencies. I have settled with 2 creditors but there are 4 more to go.
How long have you been with them? Are you still receiving phone calls?
I don’t get the collection calls, for a couple of
My debt settlement company makes you give them power
of attorney, and then whenever a creditor calls or
writes, you refer the call to the company, giving the
creditor the number.
I have also had to write certified letters to the creditors requesting that “Under the Fair Debt Collection Practices Act, I have the right to request that I not be called at my place of employment” (that phrase has to be in the letter.)
Also, I changed my longtime phone number at home (I would have 10-12 messages a day, and they called at 8 am until 9 pm.) I still have the same job, for 15 years, so some of them have that number .AND, they sell the debt to agencies, so sometimes you have to write a new certified letter to a new creditor.
Congratulations on your debt progress! I have about 8 cards, and only one as settled in a year and a half. I don’t have the budget to give the debt settlement company a lot, so that is why I haven’t accued that much to settle with.
Hope this helps. I get a little long winded explaining stuff!