     Chad Henley (Explorer3122) | Thursday, August 24, 2000 - 04:44 pm 
Here is my situation. I have 3 credit card debts totalling $40,000. I purchased a house back in January and am making payments on a Ford pickup. I am about to get married (in one month) and I have helped finance my fiance's saturn which we are paying on also. I was unable to continue my payments to the Credit Counseling Company that was handling my 3 Credit card debts and I stopped paying. Well now I am at the 180 day mark and wonder what I should do?
I live in Texas and have heard of people not paying their debts or filing BR but trying to hold out for the 7 year SOL period. I hear that you cant get sued in texas and have your wages garnished or your house and vehicle taken??.
I need to know what the credit card companies (soon to be collection agencies) can and will do to me? What options do I have? Any suggestions would be great. As I mentioned I have two new vehicles and a new house so as long as they cant take those things I dont have any major purchases coming up and could possibly hold out the 7 years. |
| Christine Baker (Admin) | Thursday, August 24, 2000 - 05:38 pm
How much equity do you have in your house? Do you know your Texas homestead exemption? |
| Chad Henley (Explorer3122) | Friday, August 25, 2000 - 05:56 pm
ummm...The house was about 130,000. I put 10% down and have been paying mostly interest the last 8 months. I am applying for texas homestead exemption. I also have a 401k with 15,000 in it... Can they get to that? |
| Don Semler (Dsemler) | Friday, August 25, 2000 - 06:21 pm
Can't get to the 401k. Also, TX is one of the hardest states for collectors to collect money. They can get a judgement against you but getting it against your house is pretty tough, I've heard. Since you have very little equity, your homestead rights will more than cover your equity. Also, BK's generally do not require you to liqudate cars as this is your transportation to and from work. If you are thinking about doing a CH12 vs a ch7, I would recomend the 7. Simply put, you get no credit for the 13. It only drags things out 5 more years. One thing, KEEP THE MORTGAGE CURRENT!! ALSO, THE CARS. tHESE ARE SECURED CREDITORS. IF YOU DON'T PAY, THEY CAN TAKE THE SECURED ITEMS. This way you'll preserve some of you credit. |
| Shylock (Shylock) | Friday, August 25, 2000 - 07:52 pm
Bankruptcy sounds about right. Chapter 7. |
| Christine Baker (Admin) | Friday, August 25, 2000 - 11:21 pm
I recommend a talk with several bankruptcy attorneys, assume they offer free consultations in Texas as anywhere else.
Take your credit report, and write up your income/expenses and assets, so they see where you're at.
Most likely they will tell you what, if anything, you have to worry about when you don't file and just wait.
Personally, I just don't like the idea of collectors calling and hounding you. I just read a post here by someone who's chargeoff they are trying to collect after 14 years. It's just such a hassle and so much aggravation ... |
| Chad Henley (Explorer3122) | Saturday, August 26, 2000 - 03:23 am
I guess an attorney is the best way to go. I was just afraid they would say your only option is BR.... That will be $1000 thank you.. I have been trying to find information on debt colletion laws for texas but no luck. I found the federal law though. Anyone have any useful site or resources to look at? What is the law as far as homestead exemption and your house as it relates to your debt?
I will file BR if I have to but 10 years sure seems alot longer than 7. Thanks everyone |
| Shylock (Shylock) | Saturday, August 26, 2000 - 04:01 am
It's a misconception that your credit will be horribly screwed up for 10 years after a bankruptcy. Although some 'due diligence' is required to ensure that all companies properly report your debts as 'included in bankruptcy' it is not difficult for a person to qualify for and receive "A" paper loans two years after the bankruptcy. |
