Just needing some opinions. I hope I am taking the correct route in paying my debts.

First off, I had a higher paying job when I acquired a lot of my debts. I no longer have that job. Anyway, I had acquired so much debt that I could not keep up. I saw a bankruptcy lawyer for a consultation last November. The lawyer told me to wait until I got married which I did this past summer so my husband and I could file together since he had a lot of medical bills and a few other things. The lawyer also told me to quit paying my bills since I would be filing bankruptcy. He told me there was no need to pay them anymore money. I did, and they repoed my car in march. We got married this past August, and after the wedding went back in to talk to the lawyers, and now since my husband has a higher paying job than when we last saw them in Nov, we make too much money to qualify for chapter 7. If we do chapter 13, we would still end up paying all of the money back because of our debt to income ratio.

Since we cannot file bankruptcy now, I decided to do a debt negotiation program with Herald and Shepley Law Office. Our total debt is 24k not counting my enormous student loan debt. The law office is going to settle so we can pay a little less than that. Also, the creditors cannot harrass us anymore. They have to deal with the lawyers. I am just wondering if this is the correct way to go about paying everything back, or are we somehow going to screw ourselves even more? With the money my husband is now making we could have this all paid back by summer. I know settlement is not good on your credit, but it is not nearly as bad as a bankruptcy. I also tried to negotiate with the creditors to settle the debts myself, but they really weren't interested in negotiating with me. Especially the creditor I had my auto loan with. They want me to pay 10k for a car I don't have! Any thoughts?

Sounds to me like it's the best way to go. I always think of bankruptcy as a last resort. Any bills I incur I do so with the intention of paying back. No matter how long it takes me or how much interest it costs me.

However, along with paying off your debts, you need to discipline yourself on the use of credit. Otherwise you will find yourself back in the same boat.

Sounds to me like its the best way to go. I always think of bankruptcy as a last resort. Any bills I incur I do so with the intention of paying back. No matter how long it takes me or how much interest it costs me.

However, along with paying off your debts, you need to discipline yourself on the use of credit. Otherwise you will find yourself back inthe same boat.

Yes, I agree. I really didn't want to file bankruptcy, but got myself in a little too deep. Along with my student loand debt, it was very overwhelming! I have definitely learned a thing or two about credit. I hate credit cards and will never get another one for the rest of my life. I am only 25, I have time to clean this up and still be OK. Thanks for the input!

Just wanted to add a little to this... If a creditor takes me to court to obtain a judgement, is it the judge's decision whether a judgement is granted? I am wondering if I went to court and showed that I am making an attempt to pay my debts (the debt negotiation program I am enrolled in) maybe the judge would not grant a judgement? Is it possible that since the creditors are aware that I am enrolled in this program and they know I am working on getting their money paid, maybe they won't want to bother with taking me to court??

Usually one of the advanatages of such a program is that the creditors agree to participate and that would preclude them taking any further action.

Yes, a judge does grant the judgement, but based on the law, not necessarily emotions. However, they will, sometimes, look for a solution that helps both parties.

Just received a call from the lawyers I am working with, and they said that Discover card sent a summons. What should I do now? Should I try and settle before I go to court so there is not a judgement on my credit (I am not sure where I will get the money) I have heard that if a judgement is put on your credit that it will stay on your report for 7 years even after you have paid. Is this correct?

You can try to neotiate a settlement and make sure you document the negotiations. If you have to go to court, show the court that documentation.

Thanks Scott! One last question (hopefully) I have heard horror stories on here about checking accounts being frozen. When does a creditor have the right to freeze your checking account? I believe they can do so as soon as they have a judgement, right? Also, I am required to have direct deposit where I work, so I do not have the option of closing my checking account and just dealing with cash to prevent this from happening while I am in the process of trying to pay everyone back. My question is, if I have my mother open an account for me, with just her name on the account, and have my check direct deposited into her account, would a creditor still be able to freeze that account?

Before a creditor can attach ANY asset, then need to obtain a judgement. This means suing you in a court and winning to the point where the court orders you to pay. If you don't pay the court ordered amount, then the creditor can seek to find and attach any assets you have. Generally, what assets can be attached may be limited depending on the nature of the debt. But case assets, like checking or savings accounts are almost always fair game.

I'm not sure if its possible to have your checks direct deposited into a 3rd party account. Even if it is, that might be considered fraud. You might be able to setup with your bank to automatically transfer the deposit into another account.