What should I do with a settlement but it isn't enough to pay off everything

[Anonymous]

I came from a similar spot about a year ago.  We actually picked the phone to talk to BK attorneys.  We'd run out of money/savings and we didn't have enough income.

I took 8 credit card accounts to a debt settlement company.  I don't recommend that.  So far 4 have settlement agreements.  Now I have just learned that the FTC shut them down.  They treated me as agred, but still this was not smart.

I also took 2 very large bank lines over to a non-profit group called MMI (money management international) and they got me 2%-3% interest rates from the bank.  These are full pay outs, no settlements, but we were able to make the numbers work.  As part of the process they made us go through a major budgetting process, and this is never a bad thing.

What is good is that these large bank lines, although closed, are actually showing as current trade lines on my credit reports.  This helps offset the damage done by the settlements and charge offs.

I plan now to go back and see if I can get some more of those old CC accounts moved over to MMI.  Might be too late now.

But hang on to that money and see if you can get some non-profit like this MMI outfit to help you get these special hardship programs.  You can deploy some of that as needed, but keep some back as reserves to ensure you make make those payments during rainy day times.

Good luck.

[Anonymous]

Thank you again everyone.
I talked to my lawyer, he's charging $1200 and he said much of the things you all said.

I also contacted MMI and will see what they say. .but I got sick last week and couldn't work, I'm even farther behind now and just tired. I don't want to fight for a year and be here next year so I think I'm leaning towards the bankruptcy. He did suggest to pay AEX if I'm worried about burning them.

What do you all think about debt stoppers? My friend my lawyer is too expensive

[FireMedic1]

A few of us already gave our best options and you know what that is. These companies arent going to do anything really but make it worse. And what they charge to do anything could be the price to get a BK Lawyer. You could also look into legal aid in your area if you can prove you cant afford an attorney. I'll be frank. Do what you have to do and get the BK going soon and be done with it. If I could pass on what it feels like once BK is over I would. It cant get any worse now. Right? Jumping around to all these companies is a waste of time and money. Start the new year with a new life.

[Anonymous]

Talk to MMI.  Do the budgetting exercise.  It isn't just a quick gloss over, they want you to put some effort in.  All of that is free.  They will come up with some combined monthly payment that will resolve most of these debts - in full (at a very low rate).  Hopefully you can swing that.

If your income is simply not going to be adequate to cover a loan workout scenario that MMI proposes, then you do the BK chapter whatever.  It is very hard for anybody here to tell you which way to go without knowing the income.

[FireMedic1]

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@Anonymous wrote:
Thank you again everyone.
I talked to my lawyer, he's charging $1200 and he said much of the things you all said.

I also contacted MMI and will see what they say. .but I got sick last week and couldn't work, I'm even farther behind now and just tired. I don't want to fight for a year and be here next year so I think I'm leaning towards the bankruptcy. He did suggest to pay AEX if I'm worried about burning them.

What do you all think about debt stoppers? My friend my lawyer is too expensive

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Even if you pay back AMEX (if you could) you have to wait 5yrs 1 month to get in with a BK. I didnt burn them so Sept I'll be applying.

[Anonymous]

The income is about $500 a week

If I don't pay the Navy American Express will American Express still hold that against me forever?

[Brian_Earl_Spilner]

The NFCU amex is not centurion bank, NFCU will hold it against you.

Bottom line is you're tired of fighting. File the BK before you get so tired that you give up and make it worse.

[Anonymous]

I saw my lawyer and signed paperwork. 

I was going to look for someone else because I felt like he chuckled when he saw my credit score.  I'll just address it with him. 

SOOO we pulled my credit and I am PISSED.  There is a hospital judgment on there for $391, I never got ANY notification, or citation to come in. NOTHING. I can't even search it in the court system.  

Anyhoo, I said it will be ok to pay American Express the $1300 however, do you all think it is worth it?  Should I just burn them and never look back? 

He also said I should close all of my 0 accounts?  Is that the correct process?   

I was pretty bummed out when I left his office. Felt like a failure.  However, I saw a post in the bankruptcy board that I really resonate with.  He mentions how debt can destroy you and how much he likes cash now.  I couldn't agree more.  

[FireMedic1]

Congrats. As mentioned above. Its not a straight out AMEX card. If you pay back NFCU after BK. You can get back in with their secured card. Every open account has to be included in BK. No way around it. With the exception of home, car, ect loans. You reaffirm want you want to keep. They're secured. You mess up after BK and they forclose, repo, whatever. So your on youe way to financial freedom. No one wants to file or admit they did. The laws were created to have a fresh start. And in your particular case. You needed to. Its all good once its one.

[Anonymous]

You don't have to include zero balance credit cards in your BK -- you only report your debt and if you don't owe on a card, then that card is not a debt:

"If you have a credit card with a zero balance at the time of your bankruptcy, then you don’t have to list it among your debts.   While that also means that you don’t have to notify the credit card company of your bankruptcy filing, chances are it may still find out about your situation.   That could potentially lead to higher interest rates, so be aware of that possibility." 

https://www.thebankruptcysite.org/resources/bankruptcy/credit-card-debt/using-credit-cards-during-ba...

I had several AMEX cards that always had a zero balance -- I used them to equal out my UTIL -- and so my attorney did not include AMEX in my BK7 and AMEX let me keep the cards. I don't have to wait five years to get back in with AMEX post BK because they never kicked me out.

You can also choose to reaffirm your credit card debt -- if a card is super importatnt to you -- read more about that also in the link above, but keeping credit card debt is sort of against the whole idea of filing a BK7, but you should know your options.