TheGreatBambino
Junior Member
What is the best way to work out "monthly payment" settlements with Credit Card companies who have Default Judgments against me? I'm trying to decide if I need the help of an Attorney (i.e. Chapter 13), or if I can handle this myself by either contacting the various Attorneys directly or enlisting the help of a legitimate non-profit advocate, such as CredAbility (formerly CCCS). Also, 4 of the 7 credit card judgments are debts that Chase sold off to another company (2 to Vanz LLC and 2 to Baxter Financial). Two of the judgments are from American Express cards and those debts were not sold-off.
Quick background on my situation - I've been a business owner for 21 years (Sole Member LLC since '06). I did well for my first 17-18 years in business. But then I hit a major bump in the road during the economic downturn in 2007-08. My business suffered. I also personally got caught in the housing bubble crossfire by buying high and selling low, and I have several other documented hardships that occurred within that time period. Meanwhile, I had large credit limits that I was always able to pay down. Well, all of a sudden I couldn't pay them down anymore. I got caught in a snowballing avalanche that I couldn't fend off any longer. It was so overwhelming that I foolishly avoided all of the legal judgment paperwork. I couldn't handle the storm coming at me because I was desperately trying to stay positive and build my business back successfully.
The good news is that my business is now 100% back on course. I have strong accounts in place and can show a solid income stream. The bad news is that, due to the past 3-4 years, I have an IRS levy on my home, a home potentially facing foreclosure, and a series of credit card judgments against me.
I know that if I can rework my mortgage, make an offer in compromise to the IRS, and make monthly settlement payments to the credit card companies that I can dig out of this mess due to the current state of my business.
The question is - how do I go about doing this? It overwhelms me every time I think about it. I have the odd dichotomy right now of doing well on a daily basis at my business, while also trying to overcome the past that I’ve buried for a few years.
I've consulted with a BK attorney regarding Chapter 13, but even that seems overwhelming because if I don't settle first with the IRS, and also rework my mortgage, then I’ll be on the hook for ALL of the missed Mortgage interest and 4 years of IRS penalties & interest. Yes, the Chapter 13 would protect me and buy me time, but it would create an enormous monthly payment for the next 3-5 years. Chapter 7 is not an option because I want to save my home and protect my other assets too.
I'd be grateful for any helpful suggestions. Thank you for your time and attention…
New Jersey
Quick background on my situation - I've been a business owner for 21 years (Sole Member LLC since '06). I did well for my first 17-18 years in business. But then I hit a major bump in the road during the economic downturn in 2007-08. My business suffered. I also personally got caught in the housing bubble crossfire by buying high and selling low, and I have several other documented hardships that occurred within that time period. Meanwhile, I had large credit limits that I was always able to pay down. Well, all of a sudden I couldn't pay them down anymore. I got caught in a snowballing avalanche that I couldn't fend off any longer. It was so overwhelming that I foolishly avoided all of the legal judgment paperwork. I couldn't handle the storm coming at me because I was desperately trying to stay positive and build my business back successfully.
The good news is that my business is now 100% back on course. I have strong accounts in place and can show a solid income stream. The bad news is that, due to the past 3-4 years, I have an IRS levy on my home, a home potentially facing foreclosure, and a series of credit card judgments against me.
I know that if I can rework my mortgage, make an offer in compromise to the IRS, and make monthly settlement payments to the credit card companies that I can dig out of this mess due to the current state of my business.
The question is - how do I go about doing this? It overwhelms me every time I think about it. I have the odd dichotomy right now of doing well on a daily basis at my business, while also trying to overcome the past that I’ve buried for a few years.
I've consulted with a BK attorney regarding Chapter 13, but even that seems overwhelming because if I don't settle first with the IRS, and also rework my mortgage, then I’ll be on the hook for ALL of the missed Mortgage interest and 4 years of IRS penalties & interest. Yes, the Chapter 13 would protect me and buy me time, but it would create an enormous monthly payment for the next 3-5 years. Chapter 7 is not an option because I want to save my home and protect my other assets too.
I'd be grateful for any helpful suggestions. Thank you for your time and attention…
New Jersey