Talk about thread jacking.
I probably did go a little OT talking about what is right or wrong to post with regards to DMP. Sorry, farmgirl. But a CCCS isn't bad advice. Hunker down and good luck.
What happens to people AFTER bk is how far they FELL before they filed. Your rebuild would be VERY hard because you are almost all the way down to the bottom now.
I had a friend that did not pay ANYTHING late and filed bk and carried his mortgage through and just got rid of a couple cars and couple credit cards, he dropped to just below 700 fico and today is right around a 720, granted before bk he had 780-800 but 720 gets him ANYTHING he wants.
Me for example have filed both ch 7 and ch 13, my EQ today is a 632, not good, but not bad for 2 bk's.
the cleaner you go into bk, the cleaner you come out of bk, going in to a bk clean is the hard part though. (meaning not late and delinquent on everything in your file.
You are fighting BK because your worried about getting credit afterwards but yet you can't get any credit right now, is there other reasons you don't want the courts help to keep stuff you deserve like your house if that's what you want?
I completely agree with Creditaddict. Even if your situation suddenly turned around to where you were suddenly comfortable paying your current bills and paying off your debt, you'd have a lot of time and work ahead of you to get your credit back up to where it was. The BK will only leave you in the same situation, and if I was in this situation myself I know the leg up would do as much for my mental state as my financial state.
farmgirl, I am very sorry to hear of your situation, and I hope that your health has improved
However, as others stated, you are going to be years in the making regardless of what you do at this point. The damage is done. At some point you have to stop worrying about credit and start working on getting your life financially back in order.
You need housing, utilities, food, clothing and basic medical. You do not need credit. Right now credit is the last thing you need....you can't handle the credit you have, so stop worrying about getting credit in the future.
You need to treat this like alcoholism....swear off credit for now....don't take a drink, it is not a part of the solution. However, over time as you pick up the pieces, your credit will improve. But it will take years....that's just the facts and nothing you do is going to change that.
CCCS can only help if you have enough money to pay your bills. When you get so far under water that the likelihood of you reasonably getting back to just the surface is minimal or non-existant, it is time to look at the alternatives.....and yes, this includes BK.
Many of us had to swallow our pride and take that plunge. I did in 1998, and I hated every aspect of doing it....and not just because of credit, that was injured all ready....it was my pride. I guess i have a little "Tim Allen" man-complex, but I hated not taking care of business.
However, in the end, it was the best decision and I bit the bullet. Now, 11 years later I have recovered and gained my credit back. But the first priority is to gain your life back.
I feel your frustration....but read your own posts. You are suffering and don't see any light at the end of the tunnel. And no quick fix is available as a treatment.
While the facts are uncomfortable, you need to at least talk to an attorney. Get the information. Talk to a reputable CCCS too, if you like. Then make an informed, logical decision. Leave the emotions home that day.
We're here, and we're with you. Just start today as the day you put your life back on track
Thanks for the feed back everyone. And in reply to some of the questions.......I'm not avoiding BK so I can keep lines open. As a matter of fact they are closed. I do not abuse my cc and always turned down limit increases. My fear is that once I am able to work again and can pay my bills that I will not be able to get any credit. For a car for example since I sold mine to save on insurance and maintance.
As far as CCCS..I did talk to them and they negotiated a plan with my mortgage lender and said once the plan was underway they would start negotiating the credit cards. However, I found out yesterday that the plan they negotiated was denied and I ended up negotiating a new plan which has a payment at approx. 700 less then CCCS negotiated. They have also not yet started negotiating the credit cards which have now all canc. and are threatening to sue.
I did get a call from HSBC/Discover who said to pay the min. for 3 months and they would report as current. Now that I have the wiggle room because of the new mtg. pyment should I shoot for the new terms or let CCCS continue doing nothing and get sued?
Congratulations! If I understood correctly, you negotiated yourself a deal $700 better than CCCS who didn't get it approved anyway.
That goes to show what a motivated 'farmgirl' can do where CCCS cannot! I am so please to hear this.
If HSBC & Discover offered a 3 payments for GW removal of lates, that is great too...providing you can afford the payments.
You really need a budget....know what money is coming in and where it is going. Once you have this on paper, you are in a much better position to continue to negotiate. The creditors don't want BK, they want to get paid back. And you can negotiate the same deals that CCCS does (or BETTER as you proved), you just have to do the work.
Don't negotiate a deal that you can't keep up with. That is why the budget is important....know where you are and what you can manage. Let the creditors know this. Request a freeze on late fees and reduction in interest. Just explain you want to honor your obligations and are trying desparatly to stay out of BK. Then once you make a deal....do NOT fail to live up to it. Or you may not get another chance.
I often suggest, especially this time of year....SPRING CLEANING TIME and have a great big garage sale, ebay listing fest and CraigsList sale. Sell off anything you don't need, don't want, don't use, is a luxury you can live without...is stored in the attic forever or you may have even forgotten about. Many people raise hundreds and sometimes thousands of dollars this way that you can really kick some debt butt with.
On the budget, just stay lean, don't spend on any non-essentials and you keep your eye on the prize.....no more debt and no more debt collectors/bill collectors calls!
I do not suggest allowing yourself to be sued. It would be far better to negotiate some type of arrangement, settlement, deferment or other arrangements. Once you are sued you have much less ability to control the situation.
Also, try to keep things with the OC and out of CA.
Yes, could you please move my message. My situation is now even worse if you can believe it.