PDA

View Full Version : Debt advice-off topic



Newcastle
01-12-2005, 12:16 AM
Sorry this is off topic, but I need some debt advice. A friend of mine owes quite a bit of money in credit card debt, etc. We're probly talking about 20k as of a year ago. Who knows what its at now. He didn't answer his phone when the companies called to collect and has had many late payments/fees assessed. All the companies have sold the loans away to collections. Anybody have advice or personal experience on bankruptcy vs. debt consolidation companies? Suggestions on who to call? Plz PM me if you can help or have knowledge about this. Thanks

jdogginla
01-12-2005, 12:27 AM
There's new laws regarding Bankruptcy.........it's not the quick solution it used to be, where u wipe the slate. If the bills have been sold to collection companies.........have him offer to pay pennies on the dollar. The only thing with that is you can't make payment arrangements. If one bill is 1000.00 offer to settle for 300.00 and pay immediatley. Just my .02

essexjet
01-12-2005, 01:46 AM
Sorry this is off topic, but I need some debt advice. A friend of mine owes quite a bit of money in credit card debt, etc. We're probly talking about 20k as of a year ago. Who knows what its at now. He didn't answer his phone when the companies called to collect and has had many late payments/fees assessed. All the companies have sold the loans away to collections. Anybody have advice or personal experience on bankruptcy vs. debt consolidation companies? Suggestions on who to call? Plz PM me if you can help or have knowledge about this. Thanks
Just like Jdog said, Make offers to collection companies. Around 7 years ago I got into the exact same trouble. But working with them I got out of it within one year and I was close to 20K. They did let me make a big down payment and then to installments but you have to give them at least 6 months of cancelled checks.

Newcastle
01-12-2005, 02:06 AM
Cool, thanks...I think they've already gone to collections, so hopefully he can go that route and offer just a percentage. Hopefully they'll be satisfied with taking something rather than nothing.

superdave013
01-12-2005, 03:50 AM
bankruptcy is for Kerry voters. He dug himself in so now he needs to dig his self out.

RiverOtter
01-12-2005, 05:30 AM
There is an author called Dave Ramsey. A relative got into the same situation and those books helped.

HighRoller
01-12-2005, 07:53 AM
I concur with River Otter. Dave Ramsey's advice would help him a ton! I'll PM you some info about his books and other stuff.

C-2
01-12-2005, 07:58 AM
$20K is no walk in the park. He probably wouldn’t qualify for a Chapter 7; they would force him into a Chapter 13, where he would be required to payback 100% of the remaining debt over a 3-5 year period. Debt consolidation – waste of time, especially for one debt only.
As others have suggested, he needs to come up with a sizeable amount of money to offer a quick settlement. Not a ridiculous amount either – realistically and if the debt is fresh – he’s looking at about 2/3 of the amount to get them to bite. Probably more towards the $15K mark to settle, maybe $10-$15K if the debt is several years old.
Even if a junk debt buyer bought the debt – it costs them only $600 to send it out to a contract attorney to sue and get a judgment. If your friend has a job and is between 20-40 years of age – this is the option they are looking at, so be sure your friend doesn’t get cocky. A collection agency or junk debt buyer knows if they sue and get a judgment – then they really have the person by the balls. I work for numerous law firms in collection matters and can tell you from experience – a fresh debt, a young person and anything over $5K is going to suit.
Your friend needs to sell some stuff, borrow against an IRA, take a loan or get money from relatives to come up with a sizeable settlement offer. The quicker the better because they will continue to hammer his credit report with inquiries and obvious late payments, and what used to be one account, might be turn into two or three. Not legal, but they will do it and it’s a pain in the arse to clean up later.
Tell him to follow the link I sent you.
Good luck on it. :)

faster
01-12-2005, 08:14 AM
when dealing with the collection agencies and making your "pennies on the dollar" offer, tell them you will only pay that amount if they send or fax you a letter stating that they will completely delete the item from your tradeline. They work on commision so i've never seen it not work. Once you pay the agreed to amount you get a clean credit reoprt. if any one has any questions pm me and maybe I can help

SB
01-12-2005, 08:31 AM
I practice bankruptcy law in FL. Please tell your friend to spend a half hour talking to a real lawyer instead of having you get advice on an internet forum.