Bank of America continued

I have received an offer from my Capital One to transfer balance at a lower interest rate 6.99% for the first year, 4.99% afterwards till the balance is paid. I don’t have a big enough credit limit to transfer the whole of the BofA balance, but I can knock off a large chunk, which would lower the monthly payment(I hope, who knows they might come up with a way to not change anything maybe a new rule that says they raise payments if you lower your balance, it wouldn’t surprise me).

My BofA account has the highest balance that’s why I was putting the most money on it so it would come down fast, but if I do this and it lowers the required monthly payment, I can make higher payments on the account I make the transfer to, get it back down again and once again transfer another hunk off of the BofA account. I’ll give more thought to this plan, I have until the 20th to use the offer.

Think you have a good idea here, Chris. I realized that I didn’t even know my Congressman’s name. Found the answer to that, and came across this bit of information, about writing to my Congressman. I plan to write to ask what can be done about the credit card companies just being able to raise the interest rates any time they feel like it, not about helping me with my problem with B of A.

I realize that there are 2903 people in this group. What if we all wrote one letter to our Congressman and asked to get some help to control the ever rising interest rates. I am sure that every body would rather pay off their debts in a faster amount of time with a lower interest rate.

Student loans and bankruptcy

The attorney I met with regarding bankruptcy told me the court won’t allow me to pay my student loan after I file. So what do I do then? I have made my SL payments without fail for years. I had a forbearance for about 6 months once and other than that, they have been paid every month. It will be a forced default, then, if I’m not “permitted” to pay it. What do I do?

This is not true. I work for Nelnet as a Bankruptcy Coordinator. Student loans are non-dischargeable unless it presents undue hardship. If it does you must file and adversary asking the judge to discharge those loans. Most judges will not discharge student loans.

This is how it works for the loans we (Nelnet) service. . .

Chapter 7 – Borrower’s loans are place in an auto stay pending the outcome of the bankruptcy. Once the bankruptcy is discharged, dismissed or closed w/out discharge the loans are placed back into servicing. Interest continues to accrue on the loans. We are unable to sent statements or make calls to the borrower during the bankruptcy or we violate the automatic stay. The borrower can continue to make payments on their loans we just cannot send them statements or attempt to collect.

Chapter 13 – Borrowers loans are transferred to the guarantee agency during the term of the bankruptcy. If the bankruptcy is followed through this is usually 3-5 years. Again, the guarantor is not able to collect on the debt but borrowers can continue to make payments. Interest continues to accrue. I file claims on behalf of the guarantors and some trustee’s allow payments to student loans and others do not because they are non-dischargeable debts. Once the bankruptcy is discharged, dismissed or closed the guarantor returns the loan to the lender/servicer to begin repayment. Once again, interest continues to accrue through the bankruptcy.

What case are you filing and what state are you in?

If credit report says

If creditor indicates bankruptcy on credit report, has a high balance but has no nothing in the balance should I leave it or ask to have it changed to -0- due to bankruptcy or will they change it?

Tracking spending

For many years I kept a checkbook but since checks are rarely ever used in our family, I just look at my bank statement on the internet to see what has cleared each day. Is anyone using a new way of tracking spending other than checks? Is it important if I try to buy a house?

Are these the companies that advertise on TV?

Are these the companies that advertise on TV that tell you they’ll help you get out of debt and they handle the creditors? If so, sounds like false advertising to me.

On another note, notch one more for CitiBank being scum. Apparently, they are continuing to harass the attorney who is helping me with my mom’s small estate. Guess they love collecting from a dead person.

Might well be. I saw an ad for something like it and I said to self “No WAY!” If they give a website, go look over what they promise. ask them if it ins’t in the FAQ’s if they leave YOU to field the phone calls and hassle the threatening notes etc. All I know is I’ve toughed it out, and am getting ever less in debt every month.

Which company rejected you? The credit card company or the one who was to help you settle your debt?

I meant $50.00 a month for their admin fee

I meant $50.00 a month for their admin fee…. (Yes, I’m having more coffee here) and that YOU are left to handle the calls and threats from creditors…. These companies then take your money and put it into an account for you (Of course, THEY get the interest on it…) and then when about 7 years have passed and your in the mud, they offer to pay the debts 10 cents on the dollar or the like. But you are left to fight them off while these ‘settlement’ companies rest on your money.

Unfortunately, By this time, the companies have no doubt dragged you down, sent your debt to a collector and as you’ve seen before with ‘no activity on the account for seven years or so, it goes away…’ they re-activate all the crud.

London Financial was one such beast, and I pulled out of that crud after eight months of psychological torture phone calls and almost losing my home.

Home loans and such aren’t on my favorites list either. Even if you get a loan thirty year fixed, you are paying 3 times as much to an interest bearing loan than if you tough it out for a couple of years more. Low interest aside, you pay more for the time factor.

I’m out of debt by settling, but it was a collection agency

I’m out of debt by settling, but it was a collection agency. They’re paid off. I am now paying another one I closed to keep the payment low, even though I am going way over their minimum. So, in less than a year, I’ve gone from owing them $5240.00 to $3563.00.

If it makes the interest freeze and the payment stay at an amount you can both work with, deal with the company you owe directly. Some of these other companies have you send them an amount which they take $500.00 ‘administration fee’. These are for the most part, cons.

I got the company I’m paying off now to work with me by saying “Well, I’m on low living money. If you won’t work with me, I guess you’ll have to sue me then, as I can pay that amount, and you won’t work with me. I guess I’ll have to default on it then.” WELL! she asked me to hold and came back with the ‘closing the account, level payback of something *I* could work with too’. I was just so dejected at the time, I frankly did not care what they did, but I knew sueing me would actually wind up ‘costing’ them more than if they worked with me.

Has anyone ever settled a debt?

My husband and I heard that some debts can be settled for pennies on the dollar. We have researched and have found lots of info on this. Has anyone in this group settled any debts as such and can you share any of the process and how long we should wait until offering to settle.

I came very close to doing this a few month ago – but had such a ominous feeling about it I didn’t end up doing it. Then dealing with the rejection of the company really made me glad I didn’t do it with that one. So I look forward to hearing the replies of others.