If someone out there could PLEASE HELP ME....
I have come to a point where I cannot pay for any of my debts. I have sold my business and stopped paying for the mortgages on (2) homes. This All caused by STOCKS! What was a good investment 7 years ago has now become a BIG BLACK HOLE. Obviously the reasoning, ECONOMY. I have pretty much put newarly EVERYTHING into the market and have lost toooo much. Now I cannot pay for anything but day to day neccesaties.
MY QUESTIONS ARE...

ISSUE #1
My home which is through BANK OF AMERICA has let a "ReNegotiation Dept" send me a letter saying they can RENEGOTIATE my loan. "reduce payments by 30%-60%" Is this a good idea, or SCAM? Positives & Negatives on this?

ISSUE #2
More than one collection agency has written me letter. One stating... the amt. I owe, my acct #, and telling me B]I need to notify them within 30 days of receiving the notice, this office will: obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such a judgment or verification. If you request this offie in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor. [/B]
Please let me know what that mean in "understandable terms" and what happens if I DO NOT write them back. Does a COLLECTION AGENCY have a right to sue you and take you to court. What are the steps in this downward spiral?

ISSUE #3
I have another credit card company (CHASE) that has written me a letter stating... "They will be HAPPY to help me enter a BLP (balance liquidation program) Reducing interests, paying off balance within 60 days, fixes monthly payments and interest rate."
That sounds great and dandy but I don't have $$$$$$ right now to fork out and pay them. What will happen if I don't take this option that they have presented to me?

ISSUE #4
NATIONAL CITY... has written me about my 2nd house. "Your delinquent account is schueduled to e charged off as bad debt. At that time, we will notify the three major credit card bureau organizations of the charge off."
I'm assuming that this means my credit is "shot". At this point that is not my concern, my credit or my house. If the bank wants it back, they can take it. What other stipulations come with this situation besides that?

ISSUE #5
DISCOVER... has written me a letter with big huge letters stating "ATTORNEY PLACEMENT PENDING""We have been authorized to proceed with legal action to secure the balance you currently owe us. If we do not hear from you by 8:00pm Eastern time on May 4, 2009 your acct will be forwarded to an attorney to obtain a judgment agaist you. To stop this action call us immedietly to make acceptable payment arrangements. CALL NOW BEFORE YOUR TIME EXPIRES"
So... pretty self explanatory here, my question is "JUDGEMENT AGAINST ME?" what does this mean? What will happen with this situation if I tell them I have no $$ to make payment plans? TAke me to court? What will the judge say to me since I don't have ANYTHING ANYMORE! NO CAR NO HOMES NO BUSINESS NO BANK ACCTS?

********I JUST WANT TO PRE-THANK WHOEVER WILL BE ABLE TO ANSWER THESE ISSUES FOR ME*****************

You can consider bankruptcy or a debt management service.

"You can consider bankruptcy or a debt management service."

I've heard that not everyone is allowed to file BANCRUPTCY. What happens then?

How long does the debt management companies allow you to pay them... Can I make the call or state the $. Or are they like collection agencies where they set everything up and tell you what you have to pay monthly.

What would be the better option... CONSOLIDATING or CALLING EACH C.C. BUREAU and ask if a % settlement will be accepted?

While its been made harder to get a bankruptcy its still possible. You can get a consult, usually for free, to determine whether you qualify,

Debt mgmt companies work in a variety of ways, shop around for one that works for you.