Expert: David - 3/8/2009

Question
I have been combing your site and thank you for your efforts. Our story is the same as many here..unemployed, self-employed Gen Contractor, huge credit card debt, home on market for 2 years with no sale, have been to bankruptcy attny and meet all reqts for that ( equity limits for state of CT, no assets, no income) but husband doesn't feel right about declaring. I stopped making payments on all cards in Jan. Getting phone calls from creditors daily and they are quite hostile. One has agreed to " Full Payment Deferral" and several others have offered so will get that going. They agree to deferring first payment 60 days. I want to declare now and sell my wedding ring to pay the attny and get it over with. (I'm assuming I will not be able to make payments in 60 days either.)Questions: Do I string the creditor along by saying I will make payments beginning in 60 days? What is the right thing to say to them to hold them off until I can get to the attorney? If I declare ch. 7, and the creditor still sues me, I assume the bankruptcy attny handles it ? Assuming he charges me more for that, thats ok, but how long can they pursue me ? I am losing sleep because I do not want to go to court other than the hearing with the ch. 7 I realize our credit is wiped. I can live with that more than I can live with these threatening phone calls.

Answer
Crystal,

Most of these questions should be answered by your attorney.  In my experience the Bankruptcy will put an end to all of it in most cases.  The companies are not allowed to harass you once you file.  You might want to google the fair debt collection act and read through it.  You'll learn that you have a lot of rights that you are probably unaware of.

As far as the Creditor I would tell them & write them that they are not allowed to call you and all correspondence must take place via letter.  I would simple tell them that I acknowledge the debt and am unable to pay at this time and do not call again.

Then begin an exhaustive record keeping process of who calls when and how many times.  Send letters registered return receipt.  This should back them off till you figure out what you want to do.

Keep in mind that if BK is going to be what happens eventually, the sooner you declare the sooner you can start rebuilding.

David McArthur
www.financialscoringsolutions.com