Will debt consolidation companies re-consolidate?

[Deja Q]

Just curious. I won't rant my entire situation (it's a gigantic inequity with the people I work for, and as it's government what I do know would piss off everybody, especially people who live in my state... not for what I'm no longer getting, but what others are still getting despite the economy...)

But will debt consolidation companies renegotiate with creditors? As I'm not going to get even "cost of living" increases due to the upcoming negotiations' being quite in the favor of my employer this time around, plus an unexpected increase in health insurance premiums (for such shitty quality of health care service, I'd rather die anyway I suppose) I've got few options.

I'd love to do "debt arbitration", but the amount of debt "forgiven" would turn into taxable income (though the arbitration company, around since 1998, openly disputes this would happen...) I'd end up paying $4500 in taxes. Guess what, I don't have $4500 laying around.

I wouldn't get a chapter 7 approved (and I'd rather like to keep my posessions as, without them, I'd be happier dead), but likely a chapter 13. Which is worthless as I'm already doing debt consolidation and chapter 13 would notify my employer, and they can be vicious. And I'd have to pay something like $2500 up front. Guess what, I don't have $2500 laying around.

And as for death, that won't do any good regardless of how much time I could spend romanticizing it. I'd rather do the right thing.

I'd appreciate any advice, thank you!

[SoCalDem]

1. What state are you in??

It only cost my friend around $800 to file chapter 7 and she did not lose any of her possessions.. (of course she is now gonna lose her house, but she got rid of the asshole boyfriend who led her down the path of fiscal destruction )

You need to ask around and fins someone cheaper.. $2500 seems very expensive to me

[Deja Q]

2. MN - should I try to get a new car beforehand?

Or even a used car? Right now I can spend $150/mo for a car monthly payment, but that'll disappear come January, unless a miracle happens (like getting promoted, which probably won't.)

That might be hard because I did debt consolidation, but my car (1995 Toyota Corolla, 76000 miles - drive 13000+/yr).

The cost of bankruptcy to the lawyer is basically a percentage of what you owe, or so I thought. Sadly, I owe a lot. :cry: There's enough evidence to prove mental illness is a factor and not wanton greed (though that doesn't mean I'm still not responsible, and ashamed or anything. I am ashamed and I should have found other ways to prevent this from happening. And I sure as hell didn't expect anything after Shrub* stole office to happen...)

There's a chap, Curtis Walker, who I might call. Just for guidance right now. I'll try chapter 7, but I thought that was total liquidation in order to pay back the creditors. Especially since I'm trying to start a business on the side, which is stupid since big business (CompUSA, Best Buy, Comp Renaissance) ahve already beaten me to it...

Thank you for responding. I'm grateful you took the time to listen!

[notadmblnd]

3. when you file bankruptcy..

you only have to file on what you want to file bankruptcy on. You can keep your car and your house. But it is a must to have the payments up to date on your court date. I Think the bankruptcy laws are federal laws so I dont think you have to worry about state laws. As far as I know only creditors are notified, not employers. What will happen when you visit your lawyer is you will have to declare the fair market value (what you think you would get in a garage sale)of your possesions and your monthly expenses. The court even allows for entertainment pet clothing expenses and etc. Find a laywer that specializes in bankruptcys, they will have their procedures streamlined and they often charge $100.00 to retain them and $200.00 to file (with the court) then allow you to make payments on the rest. Average fee should be about $1000.00 bringing the total to around $1300.00 for the total bankruptcy. If you live in Mich I can put you in touch with someone I know.

Finincial issues can be the most stressfull situation to be involved in. don't waste your time with debt consolidators,,,imo they're a ripoff.

[Deja Q]

4. I'd keep the car but lose everything else?

Shoot me now then. :-(

It's still too early to tell, but the future is not promising.

If I did chap 13 now but lost my job in 2 years due to layoffs, would I be able to re-file as chapter 7?

Thx!

[notadmblnd]

7. I don't think

you could file again for 7-10 years. Filing chap 13 does as much damage as filing chapter 7 so imo you might as well file chap 7. If things improve for you you can always go back and pay your debts.

[ikojo]

5. You know life in Bush's America

sucks if you are a worker and this makes me mad....


HypnoToad...I am so sorry you are going through this nightmare.


:mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad:

Sometimes you just have to THROW something :argh: :argh: :argh: :argh: :argh: :argh: :argh: :argh:

[Deja Q]

6. Thanks

Part of it is definitely my fault, I can't escape that.

What I want to deal with is the present, especially if I can spill my guts without repercussion, like how all whistleblowers deserve to be treated. (I'll eventually spill it here, oh y'all will love what's going on)

I also need to learn, quite quickly, how to cope with losing everything. Keep in mind that I've always seen death as a legitimate option, so trying to live through this will not be easy. Any suggestions?

[notadmblnd]

8. Its terrible what we're all going through

financially because of Bush. If you do file bankruptcy dont get back in debt after. Keep what you can your home and car (I'm talking about debts here not possessions. They wont make you sell your possessions unless they are of substancial value. I have all my furniture, cloths and jewelry, even my 401k), because if will be difficult to find a place to live after filing. If you are going to get a new car do it at least 3 months before you file and stop using credit cards now. Once you retain an attorney all the creditor phone calls will stop. You can retain your attorney for about $100.00 and when they call you just tell creditors to call your attorney. They are not allowed to contact you once you have filed with the court. My saga began in April 2002 after my husband suffered a heart attack during surgery and got behind while he has been disabled. I retained my attorney in July and filed in December, I went to court in Janurary and my debt was discharged in March. It has been such a relief to have the bills off my mind. I can now focus on his health issues (waiting for a new heart). Bankruptcy is not as horrible as you think. I also felt like an failure and was ashamed. Its kinda funny though, when I walked into court that day, my spirits were lifted when I saw the number of people there (at least 100 people).
The bankrupty court spends about 10 minutes on each case and you don't have to explain how you got in your situation. They'll ask you some basic questions like how much you make and do you have $200.00 left over at the end of the month after paying your bills (the answer better be no)

In the end I justified it in my mind as a way to get back at the system. These large banks encouraged me daily for years to use their services, Its funny but they continue to do it today. But I have made a promise to myself never to purchase anything on credit again. If I lose my husband, my plan in the future is to use the insurance to pay off my house. Then if I do lose my job, I can flip burgers to feed my 10 yr old son.