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Question
I am about 20,000 unsecured debt. I am considering quitting my job at the end of the year to move to new york and marry my fiance. At that time I will have about $10,000 in savings. Should I contact my creditors immediately and inform them I am out of work and try to settle? I have heard that 20 or 30 percent on the dollar is common. Does this sound doable? I also was wondering if the creditors will be able to see my future wifes income and checking accounts? We will have separate accounts. Dont want them knowing her income as she makes decent money. If they refused to settle, would bankruptcy be an option or would it look like bad faith since I am quitting my job? I am quitting to move to new york and marry her as she cannot come here due to her children.
You can always try and settle. I'm not sure about the 20-30%. It depends on the creditor and the situation. Generally the lowest amounts are granted when the creditor thinks they will get nothing and the account is severely behind. They are not going to take 20 percent when the account is current - as an example.
They can't see your checking or income without a judgement against you. Same thing with your wife.
Bankruptcy will have to meet the means test and income for six months can be used so it's not always as simple as quitting your job and claiming zero income.
Good luck. I hope this helps.
Regan
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA - University of Minnesota
Past/Present Clients
(private)
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