Alternatives to bankruptcy?

[PatriciaH]

Though they do have the tendency to try to weasel out of debt. Whereas with Ramsey, if you spent it, you should pay for it. Little bit nicer, karmically. There is no reverse golden rule, where "they are treating me bad so I'll treat them worse", like is being suggested by some.

Didn't the Ramseys declare bankruptcy? Just saying...

 

[luvsJack]

Didn't the Ramseys declare bankruptcy? Just saying...

Ah now, you don't want to ruin the idea that he is a perfect financial guru do you?

OP, actually, Dave Ramsey's program is a good one for paying down debt. Most of it really should be common sense but I guess most of us need that "expert" to tell us to do it. And if what you need is "how to pay down debt" then he is the go to man. If you are having trouble getting your money to stretch to cover all the bills, well, I'm not sure how much help his books will be in that area.

As for CCCS, the office here was absolutely no help at all to us. We ended up going with In Charge Debt Solutions. Yes, we had to pay a small fee for their help (they are supposed to be non-profit too) but we got the creditors off our backs , got things where we could handle them and have paid off the all the cards.

OP, some here will tell you to NEVER go to a place like In Charge, but if CCCS is not any help to you then it wouldn't hurt to check them out at least before you file bankruptcy.

 

[wdwfan16]

The "reverse golden rule" statement above is a tiny bit insulting, since I am assuming you are referring to my posts and a couple others.

Here is what happens with credit cards:

You open one with 10% interest.

Miss a payment, and your interest rate climbs up to lets say, 17%.

Oh, they charge you 36 dollars or so for being late too.

Miss a couple more. Call company and nicely try to work something out. Interest rate climbs up into the 22% range.

How many times do you miss a payment on a single card?

I don't agree with many of the stuff that the CC companies are doing now but you miss the number of payments above and you should not be expecting to be coddled by the CC company.

 

[summerrluvv]

Did the Ramsey's really file BK? Very interesting!

While filing BK isn't the popular choice, you CAN file a Chapter 13 BK as long as you have the means to pay back all or a portion of your debt (with no interest) over a period of 3-5 years. I have plenty of clients who have gotten car loans post BK and while in a BK (only with the approval of the Court though). I wouldn't immediately rule it out, especially since you said you want to pay back the debt, not just wipe it out like in a Chapter 7.

 

[finz2left]

Didn't the Ramseys declare bankruptcy? Just saying...

YES he DID,,,,,and I'd like to see where he'd be today. Like a reformed smoker who becomes the loudest complainer... DO AS I SAY NOT AS I DO....thanks Dave!

I don'tn think BK should be taken lightly, but I don't think most do. Sometimes it is a last resort, and an important step!

 

[luvsJack]

YES he DID,,,,,and I'd like to see where he'd be today. Like a reformed smoker who becomes the loudest complainer... DO AS I SAY NOT AS I DO....thanks Dave!

I don'tn think BK should be taken lightly, but I don't think most do. Sometimes it is a last resort, and an important step!

Well, actually he probably would not be where he is today. Dave Ramsey did a complete financial turn around after he went bankrupt. Going bankrupt is what woke him up and made him realize he had to do things differently.

BK shouldn't be taken lightly as it will affect you for a very long time. OTOH, Dave's plan cannot fix every problem and there are some that just reach a point where BK is necessary. It is important to see that difference and not just dig yourself further and further in.

OP, I want to say again to you; if CCCS is not your answer, look for other non-profit organizations that can help you. Look at every possible solution before filing BK, you really do want that to be your very last alternative.

 

[Disney-Kim]

OP....you probably won't find too much info here when it comes to debt/money....you will probably get judged if you choose the BK route.....and perhaps that just isn't the help you need.
Please do not flame this statement...been here a long time and money posts always start arguments....
You already said that CCC was not an option....head over to the creditboards listed and read some very helpful info. Bankruptcy may be your option and there may also be some very helpful tips on negotiating with your credit cards.

good luck.

 

[Virgderon]

How many times do you miss a payment on a single card?

Sigh. I don't know. I sincerely hope you don't ever lose your job and find out. My goodness, some of you folks here can be harsh.

OP, do what you need to do to take care of your family. Don't worry about what other people think.

 

[luvsJack]

Sigh. I don't know. I sincerely hope you don't ever lose your job and find out. My goodness, some of you folks here can be harsh.

OP, do what you need to do to take care of your family. Don't worry about what other people think.

Not everyone I know exactly where you are coming from. I hope things are better now. I have been there and done that, and know exactly what happens when you have to skip a payment (or more) on a credit card. Sometimes the mortgage payment, the light bill or even groceries have to come before a cc payment--that just the way it is in the real world.

 

[kathie859]

OP....you know there are different Chapters of BK, right? Chapter 7 is the one that completely wipes out the debt and you do not have to repay unless you "re-affirm" the debt (i.e., if you wanted to keep your house). Chapter 13 is the one that allows for court mandated payments. You make one monthly payment to the Bk referee and the monies are distributed per the schedule of creditors.

Good luck whatever you decide to do--these are tough decisions.

Oh...and forget about incurring more debt as you contemplate CCCS or BK protection. It would not be viewed as a good thing.

 

[jstack]

Family needs come before credit cards. Even Dave Ramsey says that. If filing for bankruptcy is your only option please take the time and find the best lawyer you can afford. The one advantage to filing is that you do have legal rights and the credit card companies cannot contact you. I agree with a previous poster people on here can be very harsh. I hope they never have to deal with serious medical issues, loss of a job, or having your hours cut at work. Good luck with your decision.