CCCS vs. Bankruptcy, which is worse?

[Krysstyllanthrox]

I know neither are good. Hubs and I have hit the wall.

I don't want to go into detail, but we are looking into CCCS and/or bankruptcy. I've seen some things that say their Debt Management plan is almost as bad as bankruptcy if not worse. Opinions, please.

Their office is closed right now, we've been calling since Friday to try to set an appointment. Apparently they are scared of snow.

 

[Bluemoon420]

I don't know personally, but have seen the topic come up on the news a lot around here in MI. If CCCS asks for a large amount of money up front, and says don't pay/talk to any of your creditors, we'll handle them for you, walk away swiftly. I've seen some scam stories on the news that started out that way, and they ended up in a worse situation then before.

I remember my step father claiming bankruptcy back in the 80's ( long story involving divorce, and savings and loan scandal) and he said it was one of the best things he did. He didn't lose the house, and in the end he ended up MUCH better off then he was before the bankruptcy. He said it was like a huge cloud lifted, no more stress. He also said he should have done it sooner instead of stressing out as much as he did.

So maybe look into both. Making a first appointment with a bankruptcy lawyer is free, and they can help point you in the right direction.

Bluemoon

 

[Wifezilla]

Bankruptcy.

Your credit will be "better" afterward much quicker.

"Debt management companies are springing up everywhere. These companies help "manage" your debt by taking one monthly payment from you and distributing the money among your creditors, with whom they've often worked out lower payments and lower interest. This is not a loan as with debt consolidation. Sometimes people get the two confused. However, because Americans are up to their eyeballs in debt, the debt management business has become one of the fastest-growing industries today.

Companies like Consumer Credit Counseling Service can help you get better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 bankruptcy."
http://www.daveramsey.com/article/the-truth-about-debt-management/

 

[lockedhearts]

Hubby went through this when he got divorced, the Ex immediately went out and ran up ALL the CC, leaving him with a Massive $50,000 plus debt. We could not pay even the minimum so talked to a good friend who was an attorney and Bankruptcy is best. Just don;t let yourself get sucked back in after it is discharged. You will get all kinds of CC offers after you are discharged.

 

[LovinMyPeeps]

Went through a bankruptcy years ago. It is much better for you than the cccs services. With a bankruptcy the day you get filed begins your 11 years. (used to be 7 but it's 11 now) the CCCS' basically extend the time frame that your "resolution" goes on. I did research into both. Years later I've carefully rebuilt my credit and have no issues getting anything I need from a mortgage to a car. You need to be extremely careful that you don't make the same mistakes twice, but that ofcourse goes without saying... PM me if you want.

 

[WriterofWords]

I went through a bankruptcy when my son was 3; my ex and I were getting divorced and decided since neither of us could pay off everything it would be the best route to go. It would have been if he hadn't hidden a bunch of stuff from me and then opened new accounts right afterwards and put my name on them as you can do so easily on an online applications. The rules have changed a lot for bankruptcy rulings, you really need to talk to a lawyer before you make this decision. Most have a first time free when you go in the talk to them. One of my friends who has been a stay at home mom for most of her life just went through bankruptcy and they took her car because she doesn't work outside the home, but left him his because he does work outside. They were both paid for, they made them sell hers and use the money towards the debts first. They didn't lose their home which was already paid for but in her name only because she inherited it from her mom and never had him added. When they went to the discharge hearing almost every debtor showed up and contested the bankruptcy, when I went to mine, none showed up, but now they are more desperate to recover what they can.

Credit counseling, to me, IN MY OWN PERSONAL OPINION is a load of garbage. A very close friend of mine signed up with the Credit Counseling service at the YWCA which only charged them $7 a month and then took $375 a month and paid her creditors. Her original debt was $27,000, after paying for 10 years, she paid $45,000 to these people and was still $19,000 in debt because they YWCA only got them to drop the percentage rate by 2 points, and they were unable to stop some of her creditors from adding late fees, over the limit fees, etc. Now those laws have changed too and it would have had her out of debt sooner, but I still don't trust them. She stopped paying them and now the creditors she paid so much money to over those years have started harassing her again on the phone and in person.

I suggest the bankruptcy if it doesn't mean you'll lose your home and such, because contrary to popular belief YES they can take your home. If the court feels you don't need to live in a $125,000 house and could live in a $50,000 house, they make you sell yours and put the money towards your debt and buy something smaller with the money that is left. The laws have changed dramatically in the past 5 years, look into yours very closely before you make a decision.

 

[Tala]

DH used CCCS when we first got together. It wasn't bad at all. He managed to pay off his bills, so then his credit score actually went up!

And for the record, we got a FHA loan on this house 2 years after he did CCCS. Both of us had credit scores above 700.

 

[EweSheep]

Bankruptcy is the best one than those CCCS from what I heard. I filed bankruptcy after a job loss, pregnant and no one wants to hire me due to my handicap. I could not get a home loan, just recently trying to apply for a pre approval and got denied because of the bankruptcy. The bank told me to come back next year on my seventh year and try again. I thought it would be seven years limit instead of 11 which it is a very long time! Does it differ in each state or now it is on the law books?

 

[LovinMyPeeps]

Quote:
It's technically a "10 year" hold on the reports, but honestly by the time everything is said and done it's more like 11. You need to figure for filing time, hearing, approval, filing again and then removal from the 3 credit agencies... it's a pain!

 

[vfem]

I would say bankruptcy... you are looking back only paying back a tiny portion, and that is also IF you make over $42k a year I do believe with the new law. Fix what you can fix but if its broken, and I mean BROKEN you won't lose your house if you go bankruptcy. You will have a clean slate in no time. (10 year I think it still is?)