Bankruptcy and Charge-offs

Several months ago I checked with an attorney regarding bankruptcy. He said I needed at least $32,000 in debt and several other factors. With over $40,000 in debt I met all the criteria. Unfortunately, I did not have the $1,300 I needed for the attorney and court costs in order to file, so I’ve been waiting, hoping to get a little ahead. Since then, a few (even the largest) of the accounts are showing up on my credit report as “Charged Off” or “Charged Off Bad Debt” and show a 0.00 balance. Now what shows on my credit report is below the $32,000 threshold for filing. I am afraid if I don’t file, someone like Capital One will come back and garnish my wages even though they charged off the debt. Can I still file?

The credit cards may get around to suing you, ( and they can), but if thats the case, then you may be forced into BK at that point. What I would do in your case would be to save up some money and call them up (one at a time) and offer them a settlement of 50 cents on the dollar or so. If they charged it off, it means you probably haven’t paid anything on it for a while and they would be happy to get something. But don’t call them until you can offer them 50 cents on the dollar, but offer them 40 cents first, then you have a little more that they can negotiate with.

With only about $40,000 in debt, you are not really bankrupt. Asking a bankruptcy attorney if you should file bankruptcy is like asking a dog if it’s hungry ( as a friend of mine says). The answer is “yes” of course.

They can’t simply garnishee your wages, unless it is the IRS or student loans. They have to sue you first; win the case, which they would cuz you owe the money; then they would file a garnishee. At that point, you may be bankrupt. A few years ago I filed bankruptcy. I did the forms myself. I remember there was a legal supply store of some sort where I bought a booklet about how to do it.

It’s not that hard. You need to compile all your creditors’ names, addresses, amount owed. These days you can get the forms online. Find out the court in your city where you will file. There is a fee for filing. In nyc it is $245. The first thing to do is the automatic stay which is an injunction which prohibits to make attempts to collects, garnishe your wages, foreclose on your property. Do some googling on bankruptcy, , how to go about it, and downloads the forms. Call your local court and ask what the filing fee is. Believe me, you can do that without a lawyer.

Turned in lease

Back in April or May last year we voluntarily turned in our truck that we were leasing from GMAC. They were to send us something showing the difference between the lease payoff and what they got for it. We have never received a call or one piece of paper. It now shows up as a collection on my credit!!!! I want to get this closed out as I am applying for a mortgage. What legal rights do I have??? THe amount seems high and I would like to offer them a settlement amount.

The amount probably will be high. Once you get an amount, they probably will settle for cash for about 60 cents on the dollar. You can try calling them and getting amount owed. Even if you pay it off today, it will still be a blemish on your report, but make sure they report it as a bad debt made good.

Removing a charge-off from a credit report

I have two charged-off credit cards. I made payments on them for years and got absolutely nowhere so I just up and quit paying last year. I have six kids, and we have to eat! Anyhoo, I will be coming into a bit of an inheritance later this year, and I am wondering if it would be worthwhile to contact the original creditors (not the collection agencies) and negotiate a deal at this late date and have the charge-offs removed. Does anyone know if this is even possible?

I honestly do not think that they will remove them from your credit report. My question is when did they charge them off? Also did they try and sue you and are the collection agencies still contacting you? It is possible make sure you know the original creditors address and phone number and your original account number with the account you would like to pay off! Then ask them how long it would take to have it removed from your credit report. Make sure you keep in touch with them every month and make copy of what you send to them for your records. I have some files i can post on here so you won’t have to figure out what to write. The files have prewritten agreements and checkup letters and some other ones that came in handy to me!! I have done this many times to pay off past debt and still do it till this day!!

I am finding that these companies are hurting so badly for cash that nothing is totally out of the question so I’d give it a try. Discover made us an awesome deal…dropped our interest rate, matching our payments for 5 months, brought our acct. current with the credit agencies…… give it a shot… the worst that could happen is a no.

I’m in the process of trying to clean up my credit report. I have a few charge offs. I wouild like to get any information on how I should approach this matter. (hotbabel21) if you still have your files could you post them . Thanks in advance to all.

Collections Calls

I received a call at my place of work today from NRC collections agency, and i was just hoping someone would have information about what she told me. She indicated that she was calling to confirm my employeement since the paperwork faxed to initite wage garnishment was never replied to. I spke with our pay roll and there was nothing every received. I called the local court and check if there was a judgement filled that i never received either. I told her that she was unable to call this number since it was a place of work. She insisted she had the right and would not release from my phone. Said if I hung up she would call back and speak with my supervisor.

So my questions is are they allowed to speak to a 3rd party being my supervisor about my debt, or can they call after they know calls can not be received. Can they file for wage garshisment without any court actions. And is it against policy for them to say that have when they havent? Are they just trying to bully me in to paying it at this moment. btw the 1st document i receive from this group was mailed yesturday, so its not like they have had this account for along time. Any insite would be appreciated.

I would suggest ignoring it. It is not your responsibility from this point. A collections agency cannot just garnishee you. They have to sue you first. They cannot talk to your employer about your debt. They can only contact them regarding the garnishee, and then, only if they have won a law suit against you and won a judgement.

She can only talk to your boss and/or payroll department and then only about collecting the garnishment. and they would have to furnish your employer with proof of the garnishment also, not just verbally over the phone. If you supervisor has no authority regarding payroll, then the caller would be in violation of federal law.

Also you need to research ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf the governments put out which explains what they can and cannot do. Next time, ask for their name and be sure to write it down. Then ask them what court the papers were filed with and the name and contact information of their lawyer. If they refuse any of these questions, tell them they are violating the law and they can answer to the judge when you sue them.

The low-life you spoke to gets paid based on how much and how soon the recover money from you. So, if they are speaking, they are lying. If they call back at your place of employment after you have told them not to, do not hesitate to file a complaint against the company with the federal government.

I’ve read Total Money Makeover

Well, I’ve read Total Money Makeover and the Financial Peace books by Ramsey and have read/watched Orman for almost 10 years as well. I think they offer sound advice, but I am not one to follow any program to the letter; I use the concepts that work for my situation and cast the rest aside (for example, paying off debts using Ramsey’s snowball method doesn’t appeal to me because it doesn’t take into account interest rates–I am close to completely out of unsecured debt now, nearly 6 months earlier than I would have been had I not snowballed by order of interest).

Ramsey and Orman want you to be completely debt free as well (including mortgage), so I’m not sure what you mean when you say TDIW is a total debt elimination program–wouldn’t Ramsey’s and Orman’s programs fall into that category as well? I hope I don’t sound obnoxious, I’m simply confused. I went to the TDIW site, but didn’t glean much info from it (I understand it’s a program that needs to be purchased and that’s probably why, I was just looking for a bit more info than what they give you before purchasing).

I’m glad you’ve found something that’s working for you–that’s what we’re all here for, right? :) I’d love to learn more about TDIW, but I really don’t see how any program would help me get debt-free any faster than what I’m on track for at this point. Thanks for the info!

Debt Verification Asked for Twice and have not received

I have asked for on two seperate occasions for a validation of debt on a credit card. Once was by telephone which I now know was the wrong thing to do. So I have since written them a letter and asked for a verification of debt. Tis was 3 weeks ago and I have still not received anything. What course of action do I have now? anything or am I still at their mercy? Thanks you!

It is my understanding that they have 30 days from the receipt of your letter to validate the debt. If they don’t, the debt is considered null and void. I’m not 100% sure on that, but I think that’s the way the law is written. Was that letter sent registered / certified, return receipt requested? If you can confirm they got it and what date (the little green postcard you get back from the post office with their signature) and you receive nothing within 30 days of that card, you should be home free!!!! Keep the green card, the receipt from the post office, and the online confirmation all in one place FOREVER.

Always refer to the Fair Debt Collection Act (link) when it comes to issues like these. And of course, the state statutes that apply; you may want to contact your state’s attorney general’s office.

The comments below are from the Susie Orman website, “Understanding your debt collection rights.”

Website:
http://apps.suzeorman.com/igsbase/igstemplate.cfm?SRC=SP&SRCN=layout_uydcr&GnavID=109#9

Excerpt from above website:

“What if you think you don’t owe money to the Creditor? If you think you don’t owe the Creditor money, you must send the Collector a letter stating that you do not owe the money to the Creditor. You must send this letter to the Collector within 30 days of the date you receive the written notification of the Debt. (See What should a Debt Collector tell you about the Debt?) (15 U.S.C. § 1692g(b).)

You may tell the Collector not to contact you until you receive proof of the Debt. If you decide to do this, you must do it in writing.

Once you dispute the Debt in writing, the Collector must stop trying to collect money from you until you receive written proof that you really owe the Debt from the Collector. Proof should include a written document with your name, and the name of the Creditor and the amount you owe.

NOTE: This will NOT make the Debt go away. The thirty day period is NOT a grace period – it is just a period of time during which the Creditor must prove that you owe the Debt to the Creditor. (15 U.S.C. § 1692g(b).)

TIP: It may take the Collector a long time to get back to you with the proof you request. There is no time limit for the Collector to provide proof. If the Collector cannot provide the proof you request, it may sell the Debt to another company to try to collect from you. If this happens, repeat the above steps again until you get actual proof of the Debt.”

Washington Mutual Question

I have a problem that I know I have handled all wrong but I don’t know what to do now.

Approx 3 years ago, I stopped paying on a WM credit card which had been sold to them by Providian (now WaMu). I had had 4 surgeries within a year and a half and was barely making my bills. I had called each of my creditors and most had tried to get me to keep up to date which I did. The problem with WM was that with interest charges I went overlimit and then the fun began. I called them many times. Finally they agreed to stop charging me overlimit fees until I could catch up. I paid that month feeling good. Unfortuntely, they didn’t stop and every time I called, I talked to someone in India who refused to work with me at all. I got mad and didn’t pay anything.

I have paid my other bills current during this time. About a year and a half ago, I called and offered to make payment arrangements but was told it was sold to collections. I couldn’t find out WHICH collections if you can believe it. Finally I did and called them. They offered me a settlement for $3000 (of the $4000 of which $1000 was overlimit and continuing interest). I could not do that. They sold me to another collections.

My question now: Though all my other credit is fine, the WM bill ruins me. I want to pay them off and never intended to do this, it just snowballed. What can I do? I am 2 years short of retirement and do not have a large income.

I would recommend calling them too see who has your account as well as order a current copy of your credit report. Also to get money quickly you can apply for no teletrack payday loans from WithNoTeletrack. This company has helped me a few times. They do not run credit checks and can approve youк application really fast.

Good luck!

During June I have been working here or there on July’s budget

tweaking where I can. I have been allotting a certain amount for food from the grocery store and household stuff from Walmart ….. paper goods, health and beauty, etc. I have always just worked with the monthly amount. I have deiced to do this ….

(monthly grocery amount) x 12 divided by 52. This gives me a weekly amount to work with. I will still take it out of the checking on a monthly basis but shoot to come out as low as possible (within reason) under the weekly amount. I am doing this for the Walmart envelope as well. I am trying to decide what to do with any leftover at the end of the month. I am thinking …. FFEF, savings for a special family occasion, or ? If I can consistently come under budget for a few months I will probably cut back on those envelopes and move the money permanently some where else. I know in certain month I need extra food $$ like November and December. I may stash some back from the months I under spend for those months I need it at the end of the year. I know this is kinda nerdy but I see it as a new challenge for me! LOL

We had a craft show this weekend and I am working on getting a deposit ready and looking over all the numbers. So far our initial take on it is that we did well. they had someone there from the parish and the state collecting the tax at the end of the day. At first I was like … Ugh, taxes, don’t wanna deal with it at the end of a long day and right before packing to leave. However after the whole thing is said and done, I think I like it because, wham bam thank you ma’am I am done with the tax man for that event. No paper work to file or anything. However, I am holding to both receipts for a very long time to make sure I have proof I paid in case the state comes back and says different.

About this festival …. It was the Louisiana Peach Festival and we were in the indoor arts and crafts show which was juried. We did well enough, though it is a 5 hour trip one way, that we will go again next year. We are thankful we were indoors due to the heat and humidity outside. Then an monsoon came in the afternoon with thunder and lightening. Some thought there was a tornado but thankfully it was only a bad thunderstorm with some wind kicking up.

We are having friends over for July 4th so we have plenty to keep us busy around the house. Dh will probably do yard work today or tomorrow due to commitments on Wednesday and Thursday. I will be making a list shortly of things to do each day so I don’t get too worn out. Plus I need to print July’s budget out so I can cash out when pay checks hit the bank.

One summer

I stayed on campus all summer long to take some classes I couldn’t get in otherwise. The residence halls administration hired a few of us to be on call to remove bats that got into the dorms over the summer. They were relatively easy to remove; there were a few techniques we learned to ensure neither us nor the bats were injured in the process. But it kept us pretty busy. We joked that the campus needed one of the Bat signals to shine in the sky at night to let us know another bat needed rescuing. And yes, that summer my family called me Bat Girl. Those of you old enough will know exactly what I’m talking about.

So yesterday when I got home from work

the guy I hired to clear the bushes in my backyard was still working. So as I walk in the door, I’m thinking about getting my checkbook to pay him. As I did so, I noticed there were spots all over my vestibule floor, and trying to think about what I may have spilled. As I’m doing so, I hear flapping behind me and see a bird trying to get into my house. So I try to keep the front door closed enough so he doesn’t get in, but still open the storm door enough for him to fly away. So after I accomplish that, I close the door and look around. I realize that the bird was NOT trying to get in – he was trying to get OUT. The spots I saw were bird crap all over the floor, and some on the walls.
I’m wondering, how the hell did he get IN here?!? I can’t imagine him flying in when I left in the morning…unnoticed. The only thing I can figure out is he came in through my mail slot(I only have a piece of cardboard covering the slot on the inside), and once he got in the cardboard flap came back down trapping him there. That makes me SO glad that I closed the door leading to the rest of the house – that would have been a lot more mess, and a lot harder time evicting my accidental house guest without injuring him. It still sucked cleaning up the bird poop in the 3×3 foot area…

The good, the bad and the ugly

First the bad which was created by the ugly. I lost two of my geese this week, one of them being my beloved Magellan I’ve written so much over the last 12 years or so about. The ugly bobcat took him and I saw the bobcat after him and couldn’t stop it. I’ll admit I’m a silly goose, I cried buckets over that goose being lost.

I also kicked the side out of the barn with both my menfolk, because I partially blame them for the loss. They had let the grass/weeds get totally out of control and therefore the bobcat got almost on top of Magellan before he saw it, by then he couldn’t run fast enough and neither could Jolie who tried valiantly to save my goose for me. Him, the goose’s name, was taken much the same way earlier in the week. We are now down to 10 PENNED geese until every weed within 5 acres of this house is knocked down and all wood piles are removed. I doubt dh will make the mistake of letting them out twice over my ruling, because it was him who let Gel-gel out.

Enough on that, on to the good.

The company the guys work for stood good on their promise to ds and got his refund check for tuition back to him as soon as he put in for it. I love they didn’t give him any hassle, of course it didn’t hurt he got an A in the class I am certain.

I managed to make another sizable payment on BOA, by cutting back on our grocery bill.

We got our first small engine repair item, a weed whacker, back from the shop.

the guy did an overall tune-up, changed out the spark plug and another small part for $20 and he did it on a holiday weekend in less than an hour (shortly after my fit throwing about them not getting the weeds knocked down dh rushed the machine over there) This week dh is suppose to take the weed whacker with the blade on it over to see if the guy can get it running. It will take more work for certain.