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Old 11-07-2010, 07:07 PM
jrh2reid jrh2reid is offline
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Join Date: Nov 2010
Location: Pacifica-CA-U.S.A.
Posts: 1
Default Bankruptcy v.s. ConsumerCreditCounselor

My question is whether, at my 55yrs of age, I should file for bankruptcy?
My circumstances are as follows:
2009 --- credit score of 745 FICO.
2004 --- thru 2009: interest rate 12% and 14%.
2008 --- economy would not sustain business due to:

Cancelled projects
Acc Recievables defaults.

2009 --- I was late on two credit card payments each.
Credit card companies raised % rate to 29.9% making it EVEN MORE difficult to meet payments.
Mid---2009
I tried to negotiate with bank.
I stated the truth, I was good customer for years.
Great credit score.
No missed payments.
Asked would they lower % rate, or negotiate payments until re-employed?
Basically was told, "... tough... “
I contemplated bankruptcy.
Even paid $50 mandated state fee for, primer course and Q&A as to
bankruptcy.
Decided instead of bankruptcy I would turn to CCCSSF,
(Consumer Credit Counselors Service of San Francisco)
I Laid out my case, and without ‘batting an eye’ CCCSSF informed me
one card company would charge 2% and the other 4%, should be a
a 5 year payback, but no credit cards..
I enrolled, thinking I would soon be employed and could accelerate
repayment to 3 yr.
While the credit card companies took their time approving CCCSSF,
my debt load went from $11K to $13K, mostly contractor debt
to purchase materials, labor, project start up costs.

With CCCSSF, my payments went down to a manageable level.
Hereit is late 2010, still unemployed.

I CANNOT BELIEVE with my resume' & experience I AM STILL UNEMPLOYED.

I have sold everything of any value (for pennies on the dollar), just to survive.
I have nothing left AND no pension, no investments, no health care, etc…
I have both, white collar corporate and 'am an electrical contractor.
I have paid CCCSSF on time every time with the help of side jobs and family.
But without significant employment and return to income level, I am close to defaulting on the CCCSSF.
Given my age, 55, … uncertainty of meaningful re-employment.
Would you recommend I file bankruptcy at this age? and concentrate on trying to pay back my family and friends?
OR do all I can to continue the CCCSSF 5yr plan.
A second consideration ---- today’s reality --- everyone needs a credit card.
I think that shortly after bankruptcy,

I could procure a securitized credit card.
I AM STRESSED almost to a BREAKING POINT.

What perspective do you have on this quandry?
Any feedback is very much appreciated?
P.S. ---- I have laid out my case.
Please don’t advise me to seek out a financial advisor/manager, lawyer or CPA for advice. I can no longer afford their services. I have already had to use above services, just to resolve my State and Federal tax issues, which fortunately are not an issue ....
I can no longer afford their services.
Thank you for your time and consideration.

Please email me or send me a private message.

Last edited by DavidBibby; 11-08-2010 at 12:32 AM. Reason: Email adress removed for users protection.
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Old 11-08-2010, 03:10 PM
cjscully cjscully is offline
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Join Date: Oct 2010
Location: California USA
Posts: 90
Default Re: Bankruptcy v.s. ConsumerCreditCounselor

There is a third option which I think might work better in your case. Debt Settlement. Your credit will not remain in tact with this approach but the damage to it will not be as severe as bankruptcy.

Here's how the process works.

Instead of paying the monthly payment to the CCCS company you put it in a dedicated debt settlement account. The funds accumulate until you have enough there to negotiate a lump sum settlement with one of your creditors. Once that settlement is paid the account is depleted and you go back to accruing funds for the next settlement. Your debts are settled one at a time in this fashion.

There are quite a few things to be aware of when considering this option - collection actions from your creditors are likely to continue until accounts are settled, some creditors may decide to sue, as I already mentioned it could damage your credit, if you are solvent at the time you reach a settlement with a creditor you may incur a tax liability on any debt amount forgiven over $600.

I only recommend kind of program to people who are already behind or who have exhausted all means of making their payments and are about to fall behind. The reason being that someone in that position is going to have the collection, credit report and lawsuit issues whether they're in a settlement program or not.

You do not have to hire a debt settlement company to do this. You can do it yourself.
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