In a Bind - Newbie - Needs Guidence

[burdich]

Greetings, I am writing for guidance in help with my current situation of mountains of debt. Here is my current situation of debt, and a letter I received as well:

 

 

KFCU: You are herby notified that KFCU intends to initiate repossession actions on the above vehicle. You have 10 days to bring your loan current, and provide proof of insurance on the above collateral. Your suspension date is set for 11/24/12 before we start our repossesion action. Therefore, all past due amounts must be received on or before 11/24/12 to avoid repossession. Contact 800-xxx-xxxx. Principal Bal: $5,768.74 and past due: $2,158.98. This amount includes all amounts owed. Yet when I look at my account online it states this:

 

2001 TOYOTA $5,768.74$0.0013.40%$232.91$897.66 Due 09/06/12

2006 DODGE STRATUS/IN D$4,952.14$0.005.70%$262.53$367.32 Due 10/15/12

 

KFCU: I also have a credit card with them. Balance $10,187. I spoke to them and asked to close per consumer, wants me to send $230 a month - 3 months in a row and then they can help me do something with the interest. The interest is currently at 13%.

 

NFCU: Credit card balance $10,000.00 last payment was 8/2012 of $208.00 They sent a letter dated 10/23/12 stating they had closed my credit card due to: improper handling of account - (I was in a bind and did a few cash advances at the casino - not to play but because of the location next to my home, and then I took the cash to pay living bills) and past or present obligations.

 

NFCU: sends another letter dated 11/6/12 stating your cc is past due 2 months. Therefore we are reporting delinquent status. To bring to current status, remit $10,283.07. If you are unable to remit, please contact us for options.

 

So I called, they said I needed to pay $200 Tuesday. I said I wont have that Tuesday, they said they cant work with me unless I promise to pay. I gave them my checking account information not thinking. So now, I've been advised by someone on this board to close that account and move my paycheck to another bank.

 

Chase: CC is 35 days past due 10/29/12. Balance $7500. I'm at 0% yet they want $320.

 

BOA: CC is 2 months past due 10/25/12. Balance $7500 I'm at 0% and they want $186

 

I guess my question is - do I default, try to make payment arrangements, get a bankruptcy lawyer, I am at a loss!

 

As for specifics you may need in helping me, I live in Mississippi near the coast, I do not own anythig nor have any assets. I live in a home my sister owns and she allows me to live here, I pay rent about $400 month plus household expenses. My paycheck is about $700 a week net now that my work hours have picked back up.

 

Thank you in advance.

Edited November 17, 2012 by burdich

[EarnIt]

1. Yes close the checking account now.

2. Seek advice on the BK forums.

3. Do not make a snap decision, explore all options.

4. Do you stand a chance at digging out of this?

5. Do not send payments or waste money you don't have if you are going to file BK.

 

Credit Unions are tricky, I never had to work with one. The problem with CU's is that everything is tied together, default on the cars or the CC's and they can shut it all down and will. And from what i've heard, are very aggressive at trying to collect the debt.

 

It's going to take some time to sort it all out and determine your best course of action. I can't stess enough exploring all options, BK, settlement, hiding in the basement ... ok, hiding in the basement is not a long terms solution but you get the idea. My main point is think before you act and educate yourself before you think and do not make snap decisions on sending anyone money until you know without a doubt absolutely what you can do and how to do it.

 

Best of Luck,

EarnIt

 

PS, while you are reading the BK forums, it would not hurt to schedule 2 or 3 consults with BK lawyers. You should talk with more than one. It will help with devising your plans. Even picking one and getting him/her on retainer will aford you some initial breathing room and peace of mind. That is how the wife and I started it moving. We talked with a BK lawyer, had every intent of filing then decided during the 6 months of making payments to the lawyer that there were other options we could seek out.

[burdich]

1. Yes close the checking account now.

2. Seek advice on the BK forums.

3. Do not make a snap decision, explore all options.

4. Do you stand a chance at digging out of this?

5. Do not send payments or waste money you don't have if you are going to file BK.

 

Credit Unions are tricky, I never had to work with one. The problem with CU's is that everything is tied together, default on the cars or the CC's and they can shut it all down and will. And from what i've heard, are very aggressive at trying to collect the debt.

 

It's going to take some time to sort it all out and determine your best course of action. I can't stess enough exploring all options, BK, settlement, hiding in the basement ... ok, hiding in the basement is not a long terms solution but you get the idea. My main point is think before you act and educate yourself before you think and do not make snap decisions on sending anyone money until you know without a doubt absolutely what you can do and how to do it.

 

Best of Luck,

EarnIt

 

PS, while you are reading the BK forums, it would not hurt to schedule 2 or 3 consults with BK lawyers. You should talk with more than one. It will help with devising your plans. Even picking one and getting him/her on retainer will aford you some initial breathing room and peace of mind. That is how the wife and I started it moving. We talked with a BK lawyer, had every intent of filing then decided during the 6 months of making payments to the lawyer that there were other options we could seek out.

 

 

Thank you so much for your reply. On my checking account, which is not linked with any loans, do I close that and reopen one somewhere else?

 

I also had a feeling about the car situation with the CU. Is there a way to determine if you make to much to file Chp 7?

[gogogophers]

Agreed with above, you would benefit greatly from talking with a couple of lawyers about a possible BK. Initial consultations are usually free and can help you get your arms around some of the things you'll want to be thinking about and planning. Even if you don't file BK you can still get a lot of info that will help you make a decision.

 

Be especially careful with that cash advance taken from NFCU. Cash advances have wider margins for presumption of abuse in BK. Plus, if you used the money to pay other debts you've also dipped into preferential payment territory. These issues can complicate a BK and/or drive a need to delay your filing.

 

Best of luck to you.

[burdich]

Agreed with above, you would benefit greatly from talking with a couple of lawyers about a possible BK. Initial consultations are usually free and can help you get your arms around some of the things you'll want to be thinking about and planning. Even if you don't file BK you can still get a lot of info that will help you make a decision.

 

Be especially careful with that cash advance taken from NFCU. Cash advances have wider margins for presumption of abuse in BK. Plus, if you used the money to pay other debts you've also dipped into preferential payment territory. These issues can complicate a BK and/or drive a need to delay your filing.

 

Best of luck to you.

 

 

Thank you. I appreciate your time and answers. Reading all of this can be so overwhelming. Some post state they laid low for 2 years and did nothing, some state they fixed their own debt problems, you just don't know what street to turn down.

 

I filed a BK with my exwife over 22 years ago - and never thought I'd be doing this again, or thinking of doing it. But here I am, I thought I could negotiate with these credit unions, but the amounts they want they don't want to even consider helping until I've shown consecutive payments for 3 months. I was under the impression they would settle for less and give me 6 months to a year to pay it off or something. Before that happens does it have to go into default? And my cars........ one is about to be repo'd and the other isn't past due yet. What if I allow the one to be repo'd - will I continue paying the one that isn't past due and be allowed to keep it? Even though they are both with the same credit union?

[burdich]

Agreed with above, you would benefit greatly from talking with a couple of lawyers about a possible BK. Initial consultations are usually free and can help you get your arms around some of the things you'll want to be thinking about and planning. Even if you don't file BK you can still get a lot of info that will help you make a decision.

 

Be especially careful with that cash advance taken from NFCU. Cash advances have wider margins for presumption of abuse in BK. Plus, if you used the money to pay other debts you've also dipped into preferential payment territory. These issues can complicate a BK and/or drive a need to delay your filing.

 

Best of luck to you.

 

 

Thank you. I appreciate your time and answers. Reading all of this can be so overwhelming. Some post state they laid low for 2 years and did nothing, some state they fixed their own debt problems, you just don't know what street to turn down.

 

I filed a BK with my exwife over 22 years ago - and never thought I'd be doing this again, or thinking of doing it. But here I am, I thought I could negotiate with these credit unions, but the amounts they want they don't want to even consider helping until I've shown consecutive payments for 3 months. I was under the impression they would settle for less and give me 6 months to a year to pay it off or something. Before that happens does it have to go into default? And my cars........ one is about to be repo'd and the other isn't past due yet. What if I allow the one to be repo'd - will I continue paying the one that isn't past due and be allowed to keep it? Even though they are both with the same credit union?

 

Oh and what did this mean? Plus, if you used the money to pay other debts you've also dipped into preferential payment territory.......

 

I helped my gf get her car fix; and helped her with some medical and bills she had with her children. Is that a problem?

[EarnIt]

I was under the impression they would settle for less and give me 6 months to a year to pay it off or something. Before that happens does it have to go into default?

 

Creditors won't negotiate until there's no choice. 3 months late, I would get 60% of full balance offers. 5 months late 45% of full balance offeres. 1 year post charge off, the creditors were happy to take 20% of the balance. There are many risks though, chief among them, being sued. There's a great deal to learn, State SOL, what can be taken by creditors in your state, how to live off of cash while you weather the storm ...

 

I recall being where you are, the panic, uncertainty, all the emotions that goes with the financial harship you are in ... More than one night i fell asleep at the computer reading these forums and 1 or 2 others. This is the start of your journey towards fixing the mistakes you've made, you can do it and there are thousands of good people here that will help guide you on the way. Read, ask questions, and then make the best decision that is right for you.

 

Oh and what did this mean? Plus, if you used the money to pay other debts you've also dipped into preferential payment territory.......

 

I helped my gf get her car fix; and helped her with some medical and bills she had with her children. Is that a problem?

 

Some behaviours can look less than favorable before a BK judge. Large cash advances just before filing, paying off one creditor in favor of another ... all can complicate the situation. The BK forum can help you sort that out.

[MarvBear]

If you successfully file for BK, you could stop the credit union's action against your automobiles.

[dabrian]

Sell one of the cars for starters.

[burdich]

Sell one of the cars for starters.

 

Easier said then done. I've already tried this.

[Imanevilpoptart]

Greetings, I am writing for guidance in help with my current situation of mountains of debt. Here is my current situation of debt, and a letter I received as well:

 

 

KFCU: You are herby notified that KFCU intends to initiate repossession actions on the above vehicle. You have 10 days to bring your loan current, and provide proof of insurance on the above collateral. Your suspension date is set for 11/24/12 before we start our repossesion action. Therefore, all past due amounts must be received on or before 11/24/12 to avoid repossession. Contact 800-xxx-xxxx. Principal Bal: $5,768.74 and past due: $2,158.98. This amount includes all amounts owed. Yet when I look at my account online it states this:

 

2001 TOYOTA $5,768.74$0.0013.40%$232.91$897.66 Due 09/06/12

2006 DODGE STRATUS/IN D$4,952.14$0.005.70%$262.53$367.32 Due 10/15/12

 

KFCU: I also have a credit card with them. Balance $10,187. I spoke to them and asked to close per consumer, wants me to send $230 a month - 3 months in a row and then they can help me do something with the interest. The interest is currently at 13%.

 

NFCU: Credit card balance $10,000.00 last payment was 8/2012 of $208.00 They sent a letter dated 10/23/12 stating they had closed my credit card due to: improper handling of account - (I was in a bind and did a few cash advances at the casino - not to play but because of the location next to my home, and then I took the cash to pay living bills) and past or present obligations.

 

NFCU: sends another letter dated 11/6/12 stating your cc is past due 2 months. Therefore we are reporting delinquent status. To bring to current status, remit $10,283.07. If you are unable to remit, please contact us for options.

 

So I called, they said I needed to pay $200 Tuesday. I said I wont have that Tuesday, they said they cant work with me unless I promise to pay. I gave them my checking account information not thinking. So now, I've been advised by someone on this board to close that account and move my paycheck to another bank.

 

Chase: CC is 35 days past due 10/29/12. Balance $7500. I'm at 0% yet they want $320.

 

BOA: CC is 2 months past due 10/25/12. Balance $7500 I'm at 0% and they want $186

 

I guess my question is - do I default, try to make payment arrangements, get a bankruptcy lawyer, I am at a loss!

 

As for specifics you may need in helping me, I live in Mississippi near the coast, I do not own anythig nor have any assets. I live in a home my sister owns and she allows me to live here, I pay rent about $400 month plus household expenses. My paycheck is about $700 a week net now that my work hours have picked back up.

 

Thank you in advance.