[sabi]

Hi. I'm posting this message on behalf of my father. We live in a three-person household in the U.S. Without our previous knowledge, he had thoughtlessly run up a $145,000 debt--getting him to 'fess up this figure was not an easy task. (By the way, he's retired, mom's still working, and I work as well.) Now we're scratching our heads trying to figure out what to do. Currently, his credit standing is good, but it won't be for long since we don't have a viable way right now to help him with next month's minimum payments on his various credit cards. We’re desperately trying to avoid having him file bankruptcy or give up the house as payment. To me it looks like we're going to need a service to help us get some sort of debt settlement, but I don't know who to approach, mainly I don't know who's reputable and effective. If you're part of a reputable, very affordable, effective service, or know of one, please let me know. And if anyone knows what course I should pursue in general, I'd like to hear from you, too.

[AtlantaTaxExpert]

Sabi:

Access this website to find a legitimate non-profit credit counselor in your area:

http://www.nfcc.org

They will be able to help you avoid bankruptcy, if possible. However, the debt level you cite would tend to indicate that bankruptcy is probably his only alternative. Fortunately, current bankruptcy laws will protect your home.

Do not go to any of the ones you see advertised on TV. Their record of service is uneven at best and are total ripoffs at worst.

You can also access www.clarkhoward.com for general budgeting advice. Clark Howard is a consumer advocate in Atlanta who has a nationally syndicated talk show. His level-headed, common sense advice on money matters has helped thousands nation-wide.

Hope this helps!

Atlanta Tax Expert

[sabi]

Thanks very much for the advice. I'll be looking into it. If anyone else has any ideas, or if you just agree with Atlanta Tax Expert, please let me know. Thanks for listening.

sabi

[walt17]

...if you just agree with Atlanta Tax Expert, please let me know. sabi

Atlanta's advice sounds good to me. I would also suggest that you promptly confiscate his credit cards if possible.

[sabi]

Thanks. We just took care of that.

[AtlantaTaxExpert]

sabi:

Look like you are getting this issue under control. Please keep us up-to-date on how things turn out.

Atlanta Tax Expert

[slippydippydo]

You will never be able to pay 145,000 in credit cards. Do you know what the monthly interest payments are? Minimum payments monthly payments will be well over 1,000.00.

You should seriously consider a chapter 7 bankruptcy or a chapter 13 bankruptcy . Bankruptcy will save him and your family. You better act quickly as congress is sure to pass the new bankruptcy law shortly and the new law will make much more difficult to file chapter 7.

[18JustAsking18]

Hi. I'm posting this message on behalf of my father. We live in a three-person household in the U.S. Without our previous knowledge, he had thoughtlessly run up a $145,000 debt--getting him to 'fess up this figure was not an easy task. (By the way, he's retired, mom's still working, and I work as well.) Now we're scratching our heads trying to figure out what to do. Currently, his credit standing is good, but it won't be for long since we don't have a viable way right now to help him with next month's minimum payments on his various credit cards. We’re desperately trying to avoid having him file bankruptcy or give up the house as payment. To me it looks like we're going to need a service to help us get some sort of debt settlement, but I don't know who to approach, mainly I don't know who's reputable and effective. If you're part of a reputable, very affordable, effective service, or know of one, please let me know. And if anyone knows what course I should pursue in general, I'd like to hear from you, too.

Hello, I'd like to give you some info from my personal experience, simply for your consideration as you make a decision about what to do.
About 7 years ago I was $50,000 in debt and opted to repay at reduced interest rates, through Consumers Credit Association in California. Long and short, I worked 16 hours a day 7 days a week x 5 years (with a total of 7 days "vacation"), paying the debt back over that 5 years through CCA's program. Come the next April I needed to borrow $1,200.00 to pay income taxes and the banks told me, "If you'd filed bankruptcy 5 years ago, we could easily lend you money at our lowest interest rate. However, since you went the "repayment at reduced interest" route, you are considered a very very bad credit risk, so we will only loan money to you at our highest interest rate (24%). Talk about a shock, I was condemned for doing what I felt was the honorable thing and would have been rewarded for what I felt was a dishonorable thing. As I see it now, with that size debt, if you can file bankruptcy you should do it. That size debt, even with the companies like CCA, would likely take more than 5 years, and at the end you'll get kicked in the teeth by lenders anyway. On the other hand, if you file bankruptcy, 5 years from now you'll be free of the "stigma" of bankruptcy and in the interim you'll have some quality to your life. Bankruptcy is a legal solution to a problem, it's there to help you when you get in over your head. It's not a pretty solution, but before you use a repayment program, find out what you'll be facing in terms of credit worthiness when you're done. And a final, ironic note: Consumer Credit Counselor Services, Credit Counselors of America, and all the rest, are funded by - wait for it ----- Credit Card companies! Best of luck.