Posted: Fri Oct 09, 2009 5:06 pm Post subject: debt help with bankruptcy on record
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A friend of mine is in serious trouble. He's already had to file for bankruptcy once and now he has debt problems again. He doesn't think he can get debt relief because of his horrible record/credit.
He doesn't own any real assets of any value. His job is horrible. He is just a mess and I want to get him some information so please leave any advice you may have for someone in trouble like this.
donlat you may need to give more details abotu the kind of credit issues your frind has.
In geneneral what we can say is, do nto take out any more loans, stop usign crecit cards, and do not apply for any new one and try to pay as much as you can to the loans and credit cards
in the men time, he cna call the credit card companies to negotiate any payment plan and consolidate his debt
What kind of credit problems does your friend have? You've mentioned that your friend does not have any assets. In that case, I guess he has credit card debts. If your friend is facing issues in paying off the credit card dues, he may contact the credit card company and check out if they can give him a repayment plan to pay off the dues. He may even contact debt settlement companies and check out if they can help him in reducing his dues by 40%-60%. _________________ Procrastination is the enemy of your financial success
How long has it been since the last bankruptcy was discharged. I'd try for another chapter 7 first, then Debt Settlement, then chapter 13, then Consumer Credit Counseling Service (CCCS).
It sounds like your friend still has poor spending habits or is living beyond his means, and if that's the case he shouldn't bother with Debt Settlement, chapter 13 or CCCS becsause he won't be disciplined enough to complete the programs. _________________ Raymond Denton
www.raymonddenton.com
Well, you've come to the right place for advice I think.
first and foremost, what info can you give us on his debt levels and income? What's killing him the most? He may benefit from a debt consolidation loan - if the big problem for him is that his debt repayemrnts are too much, consolidating the debt into a single new loan, which can be paid off over a longer period of time may help him a lot.
Lets say that he has 10K credit card debt, 2k in payday or cash advance loans and a car loan of 5K. All of which carry big interest charges which he can't keep up with, for the sake of argument lets say his repayments are currently $800/month (purely pulling a figure out of my butt here btw!).
If he could consolidate his debt into something like a 5 year repayment plan with a debt consolidation loan he might find that his repayments on that loan drop significantly to something like $400-500 per month or so.
IF his situation is really dire, he could look at debt settlement - it may actually be really helpful for him and as he already has bad credit he doesn't have to worry as much about his credit score.
depending on his circumstances, your friend does have options, it's a matter of which is the best one for him.
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donlat3
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