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M

mspeggy

Guest
What is the name of your state? Oregon

ok, that is kinda what I thought about debtxs. now I guess I need advise on what I should do. bk will be a fast solution but I'm not sure it is the way to go. My problems started 5years ago when my spouse opened a business, I carried the home finanaces and even helped him out when I could but after 5years and no significant income into our home I insisted that he make a dicision to fold or find another source of income for the home, He choose to fold leaving us with debt form the business and debit I accrued trying to keep our home and life. Should I contact each of the accounts myself and try to get a settlement? if so is there a certain type of letter or wording to use? If I go bk can I keep my house, car and personal belongings not to mention other money that I may get from working ot. I don't want to loose my home and I need my vehicles so we can get to work, If I file bk is going pro se a good idea? I greatly appreciate the advise from the ladynred and bigun I was really tempted to go the debitxs route. now i am lost in the confusion of what to do.
 


Ladynred

Senior Member
Trying to get settlements out of original creditors can be like pulling teeth. Unless the account is close to charge-off, most of them won't do squat for you. You MIGHT get them to put you on a 'hardship' program, which usually means you pay them a lump sum NOW and they bring the account 'current' provided you pay set payments on time for 6-12 months. If you miss, you're back in the soup. The sad thing is we as consumers have more leverage with collection agencies .. and then your credit is already trashed.

Bankruptcy.. whether you go 7 or 13 (repayment plan), you can reaffirm your house and keep it as long as you're current on the payments. The amount of equity comes into play on the house too. Same with the cars if they're financed. Every state has exemptions you use to exempt property from siezure by the court, some states can use the Federal exemptions. Unless you've got a LOT of assets, over and above the exemptions for your state, you would get to keep all your personal property. Garage sale prices are used to figure value on personal property, so don't figure on what you paid or what it would take to replace it.

Whether you file 7 or 13 depends on your disposable income. If, after normal living expenses, you have money left over, you may be forced into Chapter 13. You keep your home and property and you pay the trustee for 3-5 years, he distributes the money to creditors.

Pro Se can be done, but BK is difficult and complicated if you have assets to protect. The flood of legal papers you have to deal with can be daunting for most people. A lawyer is usually a safer way to go.
 

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