Give up and call it quits?!

I find it annoying that nobody has replied.

I'd say do some BK worksheets and see if a CH7 or CH13 would be beneficial to you.

Then look into some books that describe the process of negotiating your debts ... maybe you can do yourself some good on the phone on your own. There is a view out there that if a CPA prepares a balance sheet that shows that your family is a camel that has gone to its knees you can get creditors to agree to a plan.

Others will say to skip the step of trying to work with them and get a phone recorder and a camera to photograph caller ID records and rack up FCRA and FDCPA violations against OCs, CAs and JDBs to make money on what they do, flyingifr-style.

Whatever you do, YMMV

 

Sorry, I wasn't here yesterday - ditto on the BK idea. Most first consultations with BK attorneys are free.

Disagree with the the rack em up and sue em rah rah bs. Look at the creditors he is listing and the amounts. Citi and B of A jump out there. Citi is especially keen to hold their paper and sue. Depending on what state you are in, you leave yourselves wide open for a whole lot more headaches and financial woes.

 

Your situation is difficult to advise on, based on the limited information posted. But let's make a few assumptions, and try to give you some advice.

First, I would strongly not recommend "Not Paying" right now. The best option you could explore are the "hardship" programs sometimes offered by the CC companies. These are a reduced interest rate, adjusted payment plan program. You do have to stop using the card(s), but this seems acceptable in your situation. You will have to "ask", as the CC companies do not like to make these programs common knowledge.

There are three main questions here to consider:

1) What is your household income and expenses? i.e. your true ability to repay these debts?

2) What are your assets? Are you selling the home you're renting?

3) What are, and will be, your need for credit?

First, your (wife's) debt totals almost $26,000.00, so interest alone is about $4,000.00/year, $350.00/month. You say the balances keep "rising", is this solely due to fees, etc.? Or are you using the cards?

You would need to look at what your household income is, and what all of your normal expenses are to calculate your true ability to repay. I would strongly recommend sitting down and reviewing your household finances in detail, to determine exactly where you are.

The next question, do you, or will you, have a need for credit in the near future? You state you own a home, but you are selling it. Do you plan to buy another, or continue renting?

If you consider bankruptcy, you will have to go through all of these reviews, so best to do them now. Examine where all money is coming in, and where every peny is going.

Next, explore some "what ifs" on repaying. Run some scenarios with paying the existing debt at different interest rates. Go to www.bankrate.com for many financial calculators.

Then, a major step, contact your CC companies and discuss the situation with them. They would rather have some reduced payments then none at all. Speak openly about your situation, and explore what options they can offer.

Next, speak to a BK attorney; check w/your state's Bar Association for a referral in your area. Usually the first consultation is free, or very minimal charge.

 

flyingifr method sure isn't for everybody

Oh, I wasn't rah rah on that. And Cap1 holds their paper (and has even been known to buy others' paper) and is litigious as well. They are not the sort of buffoons Bud Hibbs helps people fight.

All three are big, sophisticated, keep good records and have keenly tuned datamining and business rules engines that let them calculate their expected take from suing, and if it's a penny more than they calculate they could get selling the paper or just sitting on it, they're in court.

If the OP owed one, it would be a disaster. Owing three is kind of like being stuck under three swordsmen who are hostile not just to you but to each other, and their blades are interlocked at their tips over your head. If anybody makes a move, the situation becomes a sure loser for all four. Nobody may ever move.

Cap1 at least is known to illegally reage TLs. And all 3 will sue after the statute runs (especially since the MBNA-ization of BofA). But that means they will let the statute run if during the period the debts are in SOL it never looks like they'll make money on the suit. And once the statute runs, the debtor has the SOL defense.

The scores are so low now that the prospect of suit happening immediately may be remote. The scores could stay low, too. Perhaps even artificially depressed by hard inquiries from strategic occasional credit apps predestined to be declined.

The flyingifr approach is only good at the outset for a quite small percentage of debtors. He himself didn't choose it at the outset ... it developed in response to creditors' abuses.

Again, YMMV

 

Many creditors treat an apparently expired SOL the way a runningback treats an opposing linebacker. Run over, under, around or through...

Phantom payments, specious tolling arguments, misuse of conflicts of law principles or choice-of-law provisions in agreements, arguing for the longest SOL on the books you name it. Or they just use sewer service and get a default and let it season for a year before trying to enforce it so that all the easy ways to get it vacated are themselves time-barred. Then they get going on post-judgment remedies.

SOL is an affirmative defense. Use it or lose it. And if you're not there or don't know to use it, they get a judgment. Sometimes if you are there and know to use it, they get a judgment (Kentucky is well known for this).

The debtor may have to use the discovery process to make them prove the reaging out of their own mouths (or at least to prove that they don't have any of the documents that would prove the reaging, leading to an adverse inference in favor of the debtor). But sometimes a court will call upon the debtor to prove a negative: that some phantom payment wasn't actually made by the debtor.

And if the debtor loses ... appeal may be out of reach due to the need to post an appellate bond ... while if the debtor wins, the creditor may appeal and if you think going pro se is hard at the trial level, just try your hand at writing an appellate brief...

And remember: If you win on SOL, you're always going to get a 1099-c after "Debt Buyers Association v. Snow" ... so try to win on their inability to document, not on SOL.

 

When was the last time you paid on these three cards?
About 4 years ago I was in credit debt in the high 6 figures.
I found that the OC's only would work with me once I w as behind several months.
THEN...I negotiate for NO interest for a year, reduced interest for a year, amount of money taken off balance.
EVERY OC that worked with me has been paid as of last year, as it was amazing how much more my payment went when there was ZERO or little interest.
The OC's that worked with me were Discover, Sears, Amex,ChevyChase and Bank of Boston.
The ones that didn't didn't get paid. One OC kept their debt, and finally sued me, within months of out of SOL but I sued their CA's and I wound up settling as payment agreed for half and got far more than I paid to settle from the CA I sued : )
So IME if you can negotiate with an OC do so, if they do not want to help, then @#$%^&*( and see what happens.
Even before you go to court they will be wanting to settle for a less than what you owe now.
I believe you should make sure you pay ALL your expenses such as rent/mortgage/insurance/utilities, all the things YOU HAVE TO PAY, and then what is left over negotiate with.
NEVER tell them you are going to pay an amount and then not do it.
Never give them availability to pull a payment out of your accounts.
Oh and one more thing, if you feel you have the personality to go to court, then you will find it is not a scary thing if you read up on things, and you just might wind up way ahead. : )
Good luck!
Woofer

 

Biz touched on the dollars and cents side very well. Some other questions to ask yourself, and which may or may not apply.

You are having a tough time obviously. Can you and/or your spouse handle the phone ringing nonstop? Can you field the inevitable collection calls without a mental meltdown - from one that has been there - it can be tough, and it CAN take a toll on marriages - that's just a reality.

What industry are you in? Credit checks are becoming more and more of the norm in employment searches. Are you in the financial industry? Are you in an industry where security type clearances, etc. are a factor?

I would have to agree with Flacorps that just the cards you listed are a Trifecta of lawsuit invitations. It may or may not happen - but it is a serious consideration as you make an ultimate decision. Are these 3 cards the only debts you have or just the three biggies?

 

Ok I am the dummy here as I have little experience in law & litigation. I just have my own experiences to my name.

Are these debts in both names or just the wife's?

When I filed Chap 7 in 2002 I filed in my name only because the debts were only in my name. My hubby's credit was spared.

Although it may not count for much my advice would be to contact each of the creditors, tell them you can't afford the payments and ask if they can work with you.

Then if they refuse consider a BK consult.

Those are 3 big dogs that bite. Are these the only 3 debts? The whole pot needs to be looked at.

I understand where your coming from, and how frustrated you must be. If these accts go bad though you will likely be more frustrated by the constant calls & letters and potential lawsuits that may follow.

In my experience the constant phone calls nearly drove me insane. There is excellant advice given above to get you started. Take what you need and leave what you don't.

I hope things get better for you soon.

Tegleg

 

While its complicated at best, and I don't even PRETEND to understand all the ramifications - whether the OP is in a community property state might come in to play as well.