Equipment loans
Question
I presently have an unsecured debt of $25,000-30,000 to several credit card companies. My present situation do?
I presently have an unsecured debt of $25,000-30,000 to several credit card companies. My present situation does not allow me to put a dent into the debt balance. I believe filing for bankruptcy may be my only solution. I am called daily by the institutions I owe money to. I ignore them because at present there is no money to make any type of effort at re-payment. Other bills take priority over these unsecured loans. These include:child support, rent, utilities, and very basic living expenses. My question concerns what recourse these credit card companies have with regards to my business property. I am a sole proprietor. My truck and equipment is essential for me to make a living. So far I have received only idle threats from credit collection lawyers, but no legal summons from the court system. I have put off filing for bankruptcy with hopes of a better solution. What will be the consequences if I continue to ignore these credit institutions?
8 months ago - 2 answers
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Filing bankruptcy is NOT your only solution, and should not even be under consideration for such a small outstanding balance! Read the article at the first link below. You have several options: 1) Debt negotiation. This would allow for a renegotiation of all of your debts to try to lower your interest rates and payments to levels that you can handle. This has the same (or better) result than a Chapter 13 bankruptcy, but without destroying your credit. 2) Debt settlement. This would allow you to set a payment level that is comfortable for you, and then your debts would eventually be settled for about 50% of what you currently owe. This takes 12-36 months, but is faster and cheaper than a bankruptcy. 3) Run and hide. Doesn't work for everyone and won't solve your situation, but is a very common method. Get help! Contact National Consumer Rights Alliance (second link below). They can assist you with these options and others, and when it is all finished, they will help you fix your credit also. You don't have to ignore your creditors, and you can get them to stop calling you, but you have to know and enforce your rights. The experts at NCRA can help you will all of this. Good luck!
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8 months ago
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Priorities First Food, shelter, transportation. Contact the credit card companies and let them know the situation. Do not give them any access to your checking or savings.Start a budget now!!!!!!!! Stick to the budget, it will get you out of this. Go to www.daveramsey.com get some help. Dept settlement does not work. You have to pay for that. The only halfway decent company is Consumer Credit Counseling Service, but you don't need them. Eventually one of the credit cards will sue you if you do not pay. At that time you may consider bankruptcy, but not yet. Hopefully everything turns around and you can start getting your life back together and never use credit for anything again. I didn't believe in the idea of not using credit until I tried it. I was $80,000 in the hole with unsecured dept and have trimmed it down to $52000 in less than two years to focused commitment. You can do it too. Remember you are no bankrupt until you are forced to be. www.daveramsey.com
by mjghunter- 8 months ago