Desperate for financial and legal advice:

I’m a single parent “not only physically” but financially” meaning no child support. I incurred about $10k in credit card debt when I was on short term disability. When I returned to work at a lower salary, I soon became “In the Red”. I chose a Debt management company to assist with the outrageous interest rates I incurred due to past due/late payments. I finally brought my CC bills down to about $6k. Then I recently received a court order in November from a previous landlord. It stated I owe almost $4,500.00. The attorney for my landlord sent me a statement which I disagreed with. There was an extra $900.00 added in the “Other” expense column, as well as a $250.00 admin fee. They couldn’t give me a breakdown of these charges. I couldn't afford to go to court. I was in contact with their attorney’s collection department and explained that I agreed to owing partial payment and was willing to work out a payment plan, but their payment plans were out of my budget. “They would only settle with the amount I agreed I owed, if I came up with all the cash ($3,000.00) at once”. They don’t accept credit cards and declined my offer of $50.00 a month. They insisted on a $1k down payment, with monthly payments of $150.00. I was going to try to borrow the money, but to no avail. "Over the holiday’s everyone is broke".

I am really worried that they will garnish my wages and need to know if I should claim bankruptcy or if I could just send them $50.00 a month “even though they said no to that offer”. I only take home a Net of $1,850.00 monthly, and my expenses are already as much, if not more, than my take home pay. I had to sell my IRA to make ends meet this past year. I have zero in savings and zero left in stocks. If they garnish my wages I won't be able to pay my rent.

My other concern is that I am currently #10 on a waiting list to purchase an affordable housing condo and need to know if bankruptcy will ruin any chance of a mortgage. I've been on this waiting list for over 3 years. I’m 38 and my daughter is 8. We need a place of our own, so I can give her a chance in decent school and good future.

Any advice would be greatly appreciated!!

Sincerely,

“One of Many Struggling Single Moms”

Laura

Being realistic,

First going and working with a debt payment service that gets the lender to charge off or reduce the amount to be paid, goes against and hurts your credit rating.

Having "alot" of late pays or no pays also hurts your credit rating.

A judgement against you really hurts your credit score

While a bankruptcy will hurt, I am not sure but would a bankruptcy really do any more damage than already done.

With all of the stuff you already have, I don't know of any lenders that would lend you any money even without going bankruptcy.

Now I am not a real expert on credit issues like these, but with a judgement already, where they could garnish wages or even "attach" property, until that is settled, I don't know who would take such a risk.

Of course untll the bankruptcy was final, you will also have issues getting any loan.

I hope thinks work out but you need to end the problems and get thinks showing good payment history before you can most likely find a lender
*unless they have some special lender programs.

4,500... that sounds like if they wish to sue you, they will take you to small claims court.

There was an extra $900.00 added in the “Other” expense column, as well as a $250.00 admin.

The have to explain to you how they got the 900 buck charge. So you have 3,350 in outstanding rent to pay?

Once you leave, the landlord has a duty to try and rent out the place to another tenant. It is called mitigation of his losses.

Did he even bother?

If they won't give you the information that you request, I say don't contact them again, and let them sue you. That way you will at least be given the information.

I agree with the previous posts regarding your problem. Assuming that your total indebtedness will wind up at $10,500, it would take you 3 years to pay it off @ $300/mo; with 0% interst. Any interest charges or difference in the payment amount would change the term accordingly. Whether you remain in the debt management program, or choose to go Chapter 13 BK (court ordered repayment program), your credit status will prevent you from buying the Condo that you have been waiting for. I do residential mortgages for a living, and as far as I know, acceptable credit is absolutely necessary for any mortgage; unless you have a sizeable down payment for B & C paper. Usually I would not advise Chapter 7 for your relatively small debt, but you might seriously consider that option. If you choose that route, be sure to pull your credit from all three bureaus and include anyone who could have a claim against you. Lazy lawyers forget to do that. A borrower who had a Chapter 7 is eligible for an FHA insured mortgage 24 months after the discharge. While you are at it, can you pursue the father of your child for support? Also check to see if you qualify for Earned Income Credit from the Feds. I wish you all the best.