CCCS vs. Bankruptcy, which is worse?

[4mychicks]

We filed a chapter 13 we pay a % of the debts owed. I think we're 17% . An amount is taken from my DH pay, every pay check it's taken out for 5 yrs. we kept the vehicles (which one got wrecked and not replaced) our home and all that was used for colateral (sp) on the loans. We do a yearly budget to see if the amount taken from the pay checks needs to go up or down. We turn our taxes over to the trustee to put toward the bankruptcy we can keep eic if we qualify . We could have filled a chapter 7 and exempted our vehicles and home turned in the colateral had our debts written off and had the bankruptcy on our credit for 7-11 yrs and pay huge interest rates IF we could get credit anywhere if needed. But we decided to file 13 we owed the bills so asked to pay them back we had that choice............to do it again a 13 that is.. myself I wouldn't do it (we can go back and file a 7 but been in it 3 yrs now) There's times Dh might make $400.00
for 2 weeks and the bankruptcy still comes out although we can get an adjustment but that's only on future payments. we've eaten alot of ramen noodles ,beans and rice, soups and stews. We had approached cccs but they charged for each payment they made and on alot of what we owed they could only have the interest taken off the bills ,where we are paying a % plus no interest. filing bankruptcy is expensive as well, the lawyers has to be paid up front. each state has differant laws here in Ky anything government can't be written off back taxes, student loans, child support. my neighbors and bil filed 7 . they both have new vehicles, homes...........................
Kathleena in Ky

 

[bigstack]

I have done both. CCCS first then bankrupcy. CCCS IS Bankrupcy!!!!! I dont care what lies they tell you. Both ruin your credit, Once I saw how much CCCS ruined my credit and I now owed them money, plus still owed the other money I decided to file. Gave back what I could. Kept the rest and paid like normal. Now 4 years later credit is 670. Not great but good. No probs with loans or buying a car. Important to keep what you can afford to. so you will rebuild credit afterwards. Otherwise you will have a harder time. I kept my house and land. 2 different payments. They helped rebuild my credit. I still have work to do but I got out of debt. I owed over 300k. Now I have a better job. my wife is in school for surgical tech. (graduates in Aug) then we will really be sitting pretty. I just have to remember to say NO! I am a bad impulse buyer. If you want it, wait 5 days. then if you still want it. slap yourself. You have made it this far without it. You don't need it.

Just my personal experience. Good Luck and God Bless!

 

[calicokat]

If you do go the CCC route - check out your company very well. THere are horror stories of these companies taking folks money, but not making the payments they are supposed to - so you didn't make any dent in the debt and lost a bucket of $$ too.

Check your options out well!

 

[FireTigeris]

People who pay debts on time can often work directly with their debtors to reduce intrest or change payment plans.

Try that first... its what the CCCS do...

when we got into trouble that's what we did, all of our creditors gave us some kind of break or another...

one defered payments for 2 years, one reduced the interest for one year, one changed monthly minimum.

 

[Guinea Goonie]

Bankruptcy is NO walk in the park. It takes careful, detailed preparation. You are not just dealing with the federal court system, you will be dealing with a person that is out to get as much money out you as they possibly can. These people are RUTHLESS and are there to simply make as much money as they can for the court. The worst part is there is NO getting away from them, they are assigned to your case from beginning to end.

They are NOT working for you, but against you. They get paid FIRST, your creditors last. Be sure you have included ALL your creditors, ALL !!

Whatever you do, NEVER and I will say it again, NEVER try to hide or manipulate assets in ANY way.

Be truthful and upfront with a lawyer of your choice. I would not recommend doing this with out a lawyer.

Carefully look at your assets and ask LOTS of questions of your lawyer. If the courts find an asset that you did not disclose you WILL loose that asset even if it is far and beyond what you owe to your creditors. Bankruptcy laws are different for each state and your state may be a bad place to live for this avenue.

Get on the web, research this extensively, it may not be for you and you MUST be prepared for an emotional ride you may not be willing to take.

I have watched a few friends worm their way through this process, it was NOT a pretty site and it can last as long as 2 years from the date you file. Do not let any one tell you different. My friends came out different people, not happy as one would expect this process to ultimately lead to.

The courts have 6 years to collect for your creditors and the first year you can be "revoked" if you do not do EXACTLY what the courts want you to do.

After I watched my friends go through this I would rather default on my credit cards (I have ONE with a limit that you could not buy a chicken coop with.)

Dealing with credit collectors it a walk in the park compared to Bankruptcy.

Although my friends came out OK, they disclosed all and bent over when ever the courts demanded them to, they say they would never forget it, ever.

 

[PineappleMama]

A lot say Bankruptcy is better, but my FIL said that now that the new rules are in place that it MAY OR MAY NOT BE... depends on your personal situation and that talking to a lawyer is a good idea. They know the laws involved and will be able to tell you if bankruptcy is the safest route for you, and if so which TYPE of bankruptcy to file. Doing the wrong one (now) can be a disaster. So says my FIL... I trust his input on many things, and given their precarious financial situation I reckon he's researched quite a few "What Ifs" but *passes grain of salt*

 

[goobhen]

My friend and her husband adopted a daugther and took in a foster child, Due to circumstances, the foster child they took in did not get Medicaid & they could not cover him with their insurance. They paid his medical bills out of their own money. They did use CCC, but it was a non-profit organization funded by United Way. The name is so close to the for profit that I always had to call her to get the telephone number to give my other friends. Now there were some fees, but not like the for profit. Please check through your local United Way, some banks even have classes etc. God bless, Theresa.

 

[harryg6167]

Have to be very careful in deciding which route to go.
Not all, but most credit counseling services are not
really "working for" or "helping you." They not only
charge you a fee for service they are also getting
paid by the different credit card companies and such.
Most cccs are nothing more than a collection agency
without so many nasty threatening phone calls.
Bancruptcy is not the best route for everybody
but sometimes is the only way out for some.
You pay ccs they pay creditor,creditor pays ccs.
Worst of al is paying the ccs for a year and find
out creditors have not gotten a dime of your money you paid to a ccs.

 

[sfw2]

If you decide to go the bankruptcy route (and I agree you should consult an attorney to help make that decision), make sure you keep your credit SPOTLESS afterwards. Most creditors will forgive a bankruptcy on your credit report, (at least after a few years), but lates after a bankruptcy make you a credit pariah.

 

[Sonoran Silkies]

Call or email Dave Ramsey (www.daveramsey.com) and ask his advice considering your specific situation. His financial advice is very sound.