"non-profit"debt Management, Or Self-negotiation Is The Way To Go.Please Ask Me?
Q: For the past few days, I have been mulling over whether bankruptcy, "non-profit"debt management, or self-negotiation is the way to go. I am sure many have asked this same question here. My specific situation is $69,000 of unsecured debt with combined payments of around $2100 per month. The debt is a combination of personal loans and credit cards, some of which will be paid off in 18 months, and some minimum payments that would last almost forever. These payments represent 30% of gross income. My base income is $87,000, with unknown overtime potential. I do not want to factor in overtime, as this has tripped me up in the past. My only other debt is a $120,000 mortgage with $1300 payments and a car loan with six months to go and $375 payments. I am concerned about chapter 7, because a judge (and my conscience) would probably feel I could repay most of the debt. In fact, if only principle is considered, I could pay off all debts in three years for a little less than my current total of payments. IMHO chapter 13 and debt management plans seem very similar. My concern is what is considered "disposable income". I have three children approaching college age, and have not been able to set aside retirement savings, due in part to servicing all this debt. Would these needs be considered? As of now, I have "pefect" credit except for being over-entended. My wish is to use the "threat of bankruptcy" to negotiate better terms with creditors, which are Chase, MBNA, Bank One, and First US
A: What are the tendancies of each to "work with" an individual or counseling agency? Could an attorney assist in negotiations, ie, let a creditor know that his client is a bankruptcy candidate "if necessary"? If any readers are affiliated with Chase, MBNA, Bank One, or First USA, I invite your feedback.
A: -My wish is to use the "threat of bankruptcy" to negotiate better terms with creditors, which are Chase, MBNA, Bank One, and First US
A: What are the tendancies of each to "work with" an individual or counseling agency? Could an attorney assist in negotiations, ie, let a creditor know that his client is a bankruptcy candidate "if necessary"? You can't use the threat on your own. You need a attroney to do it for you. But a BK attroney will push the BK becaue it is eaiser and more proftiable for them. If you pay them a retainer to write a letter, then take wait and see what they say. See an attroney, I don't see a problem with a stright 7. Even with your income! It is the law they base this on. -You may be able to get addidional oppinions and you will find links to many bankruptcy related sites and other informantion at BankruptcyCourtNETwork.com A great resource for bankruptcy matters. From asset auctions and liquidation sales to consumer education. You can also research specific