Capitol One called again last night

Capitol One called again last night and we were able to agree on a settlement but he refuses to put it in writing and mail it to me. He says once I pay the amount, the account will close and I’ll get a letter in 5-8 days saying the account has closed.

I don’t believe him.

DAve Ramsey says to get everything in writing before paying anything.

I found it while I was trying to find a group to help with decisions my hubby and I have to make in order to get out of the dark hole of debt we are in.

We found ourselves in a rut when my hubby broke his leg and ankle and was out of work for over a month after two surgeries to fix them. We were already on our way in the hole before the accident and it only made things worse. We were unable to make the minimum payments and the amounts sky rocketed. Then he was unable to go back to his previous line of employment and took about a 1/3 off of his income. So once we got behind we were not able to catch up on the income that he is on now. Going back to the previous line of work is not an option.

We are debating on bankruptcy (the one where we make payments) or trying to get a company to consolidate the credit card and medical bills into one payment. We are trying to find the pros and cons of the two. We now have bad credit and are unsure whether we can even get someone to consolidate. Our minimum payments on our credit cards are unrealistic because of charges that were added. Some of the credit cards were only $500 limits and are now over $1000 because of fees. They will not work with us to get them lowered, we have tried.

Can anyone give any suggestions or opinions on how we can get this figured out?

Right now I am trying to focus on our medical bills, about 18 different bills. We do not have insurance, because we cannot afford it and do not qualify for any assistance because we make $100 too much a month. We have had 4 broken bones in about a year and a half and are trying to get them all paid down. It is such a slow process.

This sounds like a sob story and I don’t mean for it to be. I am just trying to get it all figured out so we can get everyone paid. We really want to pay everyone, we just cannot seem to find a way past all of the built up fees.

My daughter is unable to work due to emotional problems

Thanks for all of the advice. My daughter is unable to work due to emotional problems. She has had them since teen years. No one seems to understand that she will not get better. She has applied for disability (Social Security, etc.) and can’t qualify because she has never worked. What does that tell you? I can’t figure these agencies out.

I know she and the grandkids are not legally my responsibility, but I don’t know how to let go of my feelings of guilt if they don’t have a place to live, etc.

We talked to Consumer Credit Counseling Service and an attorney. Both said that Chapter 7 BK is the only way. I don’t see it that way. I told my husband that if we cut down on cable, internet service, and a few other items, we could work out a budget. We now only have 1 car, so that is saving some money there.

I would like to know if it is possible to stop late fees, over limit fees, etc without filing BK13 or going through an agency. Do any companies ever listen and actually take into account someones financial situation?

Again, thanks for advice. I really do appreciate it. Maybe I could email a few members and have them assist me with a budget if that’s possible.

Watch this video related to emotional problems:

Unfortunately, the banks could really careless about your financial woes. Hell they actually perfer them as they then can charge more in interest and other penalty fees when you go behind.

Chapter 7 BK (bankruptcy) is a solution if you absolutely cannot find the cash to handle the bills. Do not do Chapter 13 BK. There are alternatives that would better and charge less.

You should look at debt settlement at this point to handle your debts. There are some good companies out there that handle you.

I recommend NationalDebtRelief as a performance based company.

I recommend Credit Solutions as a front-fee based company.

If you wish to settle the accounts on your own then I suggest www.edebtfree.org as a company to guide you hand n hand through the steps.

Settlement is not the best but at least you will pay the creditors something back rather than just dumping your debt. It does show that you made an effort.

If your daughter is truly mentally incapacitated then what the hell is she doing raising children. If she can responsibile enough to raise children then she is responsibile to work and make a buck.

Raising children is a lot more stressful than working…and you should know that.

If you are buying into this then It is my opinion that you are just as negilent as your daughter.

Tough thoughts I know…but lets be realistic.

I don’t wish to come off condescending ( and I know that I am) But some has to pull the blinders off at some point here.

Stop being reasonable with this situation and do something that is really effective here.

I apologize for being offensive, but I had to get that off my chest.

Anyone heard of ARS/Ameriquest Recovery Services?

I had an account with Chase Bank with a balance of abut 6,000. I got WAY behind and this ARS starts calling me…The first call to me, the guy tells me that I had to pay at least 1,000 by 3:00p.m. that afternoon or I was going to receive a judgement letter(i think thats what he called it)…to appear in court. The thing that worried me is that my mother is also on the account. I explained that i could pay a reasonable amount each month but not large amounts. They start reading me my mothers credit bureau report and advising me that it looked to them that she could qualify for a loan or another credit card through some company called Beneficial. When I said “absolutely not, thats not reasonable”..they started telling me that I was not an honorable person and they would just call my mom. I don’t want that. My mom is in very bad health and even though her name is on the account, i want to pay it myself. So, they scared me enough to go to H&R Block and get my tax refund overnight and Western Union the bullies 1,000 so that hopefully they would realize I had good intentions to pay.

They accepted that of course but 2 days later start the harassment again. They are telling me they are NOT a collection agency. I just wonder if anyone else has dealt with these folks. Are they a collection agency or not? They tell me the “creditor” will only give me one more week to pay the balance in full. So, I asked if I could contact the creditor myself since and of course they said no. If they are not attorney’s or a collection agency, who are they?

They are relentless bullies! Also, I don’t think they had any business reading my mothers entire credit report…just because she is on the account..can they give me all of her info? Sorry for the long, rambling post. I would appreciate any advice as these people are scaring me to death!

ARS is a collection agency since they are not the original creditor. So you need to research the FDCPA and make sure they abide by it. They can tell you what they did to scare you into paying which you did. So lets learn real quick here that lesson one is to NEVER speak to a collection agency and never without a recorder for any reason.

Now for your mom – if she is on the cc then she is just as responsible as you and they can call her, pull her credit report, report negative information to the CRAs and even sue her. Doesn’t matter who used the cc. So you hopefully told your mom you re in a tight spot and fell behind but are making arrangements to pay this. Better to hear it from you than the CA.

Send a letter CMRRR from both you and your mom telling them to cease all phone calls to you at home and/or work and anywhere else and to only contact you by mail at such and such address. Also give notice that should they fail to stop calling you in violation that you are notifying them in advance that ALL calls to such and such numbers will be recorded for any future use in any federal and/or state court cases. This will at least stop the calls

Here is what I use:

You are not to communicate with my by phone at any number(s) you may have. You can communicate with me by mail at (address) only! Please also note my file that all calls to (phone numbers) are recorded for any future legal purposes.

This letter is intended to serve as legal notice and may provide a basis for complaints being filed in accordance with FDCPA, FCRA, attorneys general, Federal Trade Commission and other federal and/or state statutes.

Preparing to File Chapter 13

I have made the tough decision to file Chapter 13 and am in the process of getting my paperwork together and trying to find a lawyer.

I am in my early 30s, single with no kids and have suffered all my adult life with the build-up of debt from college – the typical horry story of student loans combined with easy credit that snowballed to $80,000 in debt at its height. My monthly net take home has hovered between $2500 to $2600 in recent years. I was on a debt management plan for two years with a monthly payment of $1,600 (this does not include $200+ per month in student loans that I have had placed in forbearance). I tightened up, but it is very difficult to pay rent, utilities, food, transportation, household goods, clothes and other stuff on just $900-$1000 per month. I may have been able to get by, even though it was rough, but then the car transmission went out and since I had already depleted my savings and could not get new credit, I could not pay the lump sum to fix the car. I found a cheap garage to rent a car, but I also had to pay to store the defective car. In a great perversity, I am paying almost double for a cheap car + car storage than I would with a new loan to get a car (but I don’t qualify for new credit) and my job does require reliable transportation. Of course, my monthly expenses shot up and I fell eventually fell behind.

In addition, last summer, I finally had to address personal and household issues that I had neglected. Even though I make a middle class income, I have been living like I was low-income, but I have a professional job where I do have to maintain my appearance and such. I went about 2 and half years without really buying any clothes other than worn out underclothes and shoes, but had to come to terms with the need to get some new clothes to replace parts of my wardrobe that had worn out or didn’t fit anymore. Last July, when I got a $500 bonus, I used it to buy new clothes, instead of trying to catch up on the debt payment. I was also recently made a manager and workers under me, some of whom make just over half of what I make and have kids, have better cars and stuff than me. If I am unable to maintain appropriate “trappings” that are commensurate with my job position, then I feel that my advancement is going to be limited.

I found a lot of info from this video:

Last December, I signed up for a new debt management plan, after the previous plan was terminated when I fell too far behind. To date, only half the 12 creditors have agreed to the new payment plan, but even some of the ones who agree to the plan are charging me off and one who rejected the plan is suing me to get a judgment, even though I have sent monthly payments the past 3 months.

When I got the notice about the lawsuit earlier this month, I first was thinking that I need to explain to that creditor that I was making a good faith effort to make payments and sent a letter to their lawyer to try to get them to dismissed the lawsuit. But I had a weekend to think about it and after reviewing the bankruptcy law and my personal situation, I determined that it doesn’t make sense for me to continue with the debt management plan anyways. The only way to avoid the judgment is to file bankruptcy, but that’s not the whole story.

I, of course, care about my credit rating and so I do approach the decision to file bankruptcy seriously. But my credit is already damaged, with the late or missed payments, charge offs, and participation in the CCCS debt management plans. There is not too much more damage that a bankruptcy can do to me at this point other than make part of the public record that which in private I already know, which is that I am insolvent. I have already been operating without new credit for 3 years and believe with the debt relief that I could live without credit.

The belt tightening that I’ve done has been so severe that I have neglected myself personally – I’ve really been on an austerity plan. I need to get glasses, I need to get my car fixed so I don’t have to pay car rental and storage fees, I have not paid annual fees to maintain an unrequired but nonetheless valuable professional certification, I need to get collision insurance for the car, I don’t have rental insurance for my apartment, even though I got medical/dental plan I don’t use it due to the copayment, and the list goes on. Meanwhile, my social and personal are impacted as I rarely go out and have never had a real vacation. Then, there is the nasty collection calls and letters that have my so frazzled that I don’t want to answer the phone, listen to my answering machine messages, or open the mailbox. They have also called me at work and called me at my parents home over Thanksgiving weekend! Meanwhile, I have no money to address other emergencies that may come up and I have disinvestment in other activities (continued education/training) that could end up making me more money in the future.

My concern about bankruptcy as a failure has also been mitigated.

First, I learned that successful people have been bankrupt. For example, Donald Trump has had business bankruptcies and Abraham Lincoln had business and personal bankruptcies. So with me in my early 30’s, I feel that in the long-term, I can restore my financial and personal credibility and still be successful. From the moral perspective, I don’t feel like I am leaving the creditors in the lurch. As I was going through one of my recent statements, I noticed that the balance had not changed from the previous month. Even though the creditor accepted my DMP Payment, they didn’t re-age my account and so the interest, late, and over limit fees equaled the DMP payment (the only reason I had an overlimit fee is due to penalties and interest – I never actually charged up the card over the limit). This fed stronger into my feeling that I need to do something drastic, or else I would continue to make movement but no progress, like a little mouse running on a wheel in a cage. I have paid the creditors the principal balance and a healthy profit already!

I know some people have denounced the new bankruptcy laws, but I don’t really have a problem with them. If I filed Chapter 13, I would likely be looking at payments of student loans at about $200 per month and the Chapter 13 Plan Payments of about $350 per month for a total of approximately $550 in debt payments. As I have been belt tightening over the past 3 years, my spending has been well below the allowable living expenses calculated by the IRS. I should have more than $2,000 per month to live on and resume having a normal life and build a savings.

PROFILE:

  • Gross Annual Income = $49,000
  • Unsecured Credit Card and Personal Loans = $52,000
  • Student Loan Debt = $13,000
  • Net Monthly Income = $2,600
  • Student Loan Monthly Payments = $200 (in forbearance)
  • Partially Approved Monthly DMP Payments = $1,200*
  • Transporation Related Expenses Per Month = $550
  • Rent & Utilities Per Month = $600
  • Food, Clothes, and Household Items Monthly = $200 or whatever is
    available (usually less)

*Some creditors have rejected the 2nd DMP plan, but take payments without further collection activity other than charge offs, though one creditor is suing for a judgment for about $5,000 which is a prelude to garnishing my wages.