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HCLegal
HCLegal, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 423
Experience:  I have won over 1500 Debt Lawsuits, saving my clients over $12,000,000.
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For HCLegal: I would be interested in getting your thoughts

Customer Question

For HCLegal:

I would be interested in getting your thoughts on a matter.

Trying to decide if bankruptcy looks appropriate.

I have a relative that I am trying to help out and do not know which way to direct him.

He makes about $1900 per month gross and then pays $500 monthly in child support. He nets about $1100 per month and has no assets. He never filed bankruptcy before. Recently he defaulted on several credit cards, $4000 on one and $1200 on another and $180 with his overdue bank account, $300 on another and just got evicted from his apartment rental which was $800 per month with 5 months remaining on the lease. Last week his car that he was leasing just got repossessed. He also has some non paid electrical bills, car insurance and cellphone. 8 months ago this guy's credit was spotless but everything changed for him. With the balances being rather low but numerous, I wonder if bankruptcy could be a likely option. He has no monies to hire an attorney and nobody would do it pro bono. So it he represents himself I am not sure if it would even be done properly. The guy lives hand to mouth and has no savings.

It would be favorable to just dodge the creditors, repo people and legal people involved in the eviction since he has no resources, Where he is living now costs him $650 monthly out of his remaining $1100 paycheck in net.

What do you see that could be some possible options as far going for bankruptcy or not onece he decides on what to do?

He is very concerned about them garnishing his wages from the $1100 he has to live off of.

I also like your suggestions!
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  HCLegal replied 1 year ago.

HCLegal : Hello and thank you for requesting me to answer your question. There may be a delay in my response to any follow up questions as I am out of the office with my wife who just delivered our baby.
HCLegal : he has about $5k in misc credit debt plus the broken lease and the repo. The broken lease can be very costly and he may owe several thousand on that alone.
HCLegal : bankruptcy would give him peace of mind and he would not have to worry about any creditors coming after him.
HCLegal : you can look into legal aide who can probably help him fill out the paperwork at no charge.
HCLegal : so my recommendation is for him to do the bankruptcy.
HCLegal : Let me know if you have any questions.
Customer:

Congratulations!!!


 


 

Customer:

 


 

Customer:

I will patiently wait until you are available.


 

Customer:

Which type of bankruptcy is the appropriate chapter ? When is the best timing since the eviction has not finalized yet? He moved out and did not pay for September 1 and they have not yet locked him out of his place but he left on his own. He was a no show to court last week because he did not have transportation and could not miss work. It is still pending. Does bankruptcy need to be timed properly in relation to a recent repo and pending eviction?

HCLegal :

Thank you for the congratulations...


 


I would only recommend a chapter 7 bankruptcy as this would wipe out everything (except the child support) and give your friend a total fresh start.


 


As far as the timing you can file it anytime. If the eviction is still pending you can list the lease as rejected in the bankruptcy schedules. If it is finalized by the time your friend files, you would just list the lease as an unsecured creditor.


 


As far as the repo, since the car has already been repo'd you can file the bankruptcy at anytime, you do not need to wait to get a final balance owed on the car. Again, you would just list the car lease as an unsecured creditor. you would also need to list the repo on the statement of financial affairs.


 


Let me know if you have any other questions.


 


thanks!

Customer:

Be well and enjoy your new loved one.


 

Customer:

 


 

Customer:

Best wishes......

HCLegal, Lawyer
Satisfied Customers: 423
Experience: I have won over 1500 Debt Lawsuits, saving my clients over $12,000,000.
HCLegal and 5 other Consumer Protection Law Specialists are ready to help you
Customer: replied 1 year ago.

HCLegal only -- Are you still active on this site?

Expert:  HCLegal replied 1 year ago.
Hello, Sorry I have been away for a while with our newborn and my private practice has been very busy lately and I have not had a lot of time to devote to JustAnswer.

Please let me know what questions you have and I will be happy to answer them.

Thank you,

HCLegal
Customer: replied 1 year ago.

I understand. I am glad things are good for you.

 

Since you started with me, I really trust your advice!

 

It has now been more than 4 months since I stopped paying BOA credit card. Here is the letter I plan I sending to them. Please let me know if anything should be corrected or changed up to strengthen my case.

 

I do not know how to say in the letter that I do also receive a minimal long term disability check paid from my employer through an insurance company and that I am current on my BOA mortgage. They can see my bank account and mortgage monies through my credit report and the payments that I have been making to Amex. How do I explain those?

 

I need to make sure that what I say in the letter matches what they see on my credit report where I am not delinquent on anything else.

 

Dear Bank of America

,

This letter shall address the debt reflected on a Quantum Master Card issued to me by Bank of America MBNA, with Account Number _____________. My spouse abandoned me and my little girl ten months ago, leaving us penniless and almost homeless. I am disabled and must rely solely on my Social Security Disability Benefits to meet the bare necessities of life. This has resulted in severe financial hardship, making it impossible to meet any of my debts, including the debt reflected in the balance on the subject credit card. I have assessed my situation and find that I do not have the resources to pay off this balance, nor can I continue to make the monthly payments required to keep this account current.

 

I am sincere in my desire to want to do the best that I possibly can to pay off this debt that would work for both parties. The problem is that I have no disposable income or assets. The Mortgage Balance on my home far exceeds its present value and I am considering giving the lender a Deed in Lieu of Foreclosure, thereby eliminating one more financial burden. As you may or may not already know, creditors cannot attach or garnish any Social Security benefits and since that is my sole source of income, that will remain intact

.

I took this suggestion and after consulting with a Bankruptcy Attorney, I find that I do qualify and, although it would not be my first, or second choice, I am forced to give it serious consideration in light of all my financial difficulties. He informed me that my Social Security Disability Benefits would remain intact because they cannot be reached by creditors.I have a second meeting with the Attorney at which time, I will bring him all of my debts which are dischargeable in bankruptcy.

 

In order to make sure that I am able to commit some of my limited funds to this credit card rather than nothing at all and to show my good faith, I am offering $2,200 as payment in full and final settlement of this credit card debt. If you can agree to this amount and would agree to remove all penalties and fees in writing then I can commit to sending in this amount by [Date You Will Send in Payment] in the form of a cashier’s check or a money order.

 

The balance has reached unmanageable proportions resulting from your imposition of late charges, penalties and the high interest levied on my account for several years. Once these excessive charges are eliminated the balance is not only more manageable, but it more accurately reflects my actual usage of the credit card. If you are in agreement, kindly confirm in writing that you will accept my offer of $2,000 in full and final settlement of this credit card debt.

 

I would kindly request that you consider this good faith offer and let me know of your decision within the next Ten (10) days so that I may act accordingly.

 

Thank you in advance for your kind consideration,

Expert:  HCLegal replied 1 year ago.
That looks perfect. Only one change, is that in one place you offered $2200 then in another place you offered $2000.

Send that to them, but then also call BOA directly and explain your situation and make the offer again.

Of course do not pay them anything unless you get something in writing from BOA saying they will settle the account in full for the $2000 or $2200.

Thanks,

HCLegal
Customer: replied 1 year ago.

Hi HCLegal,

 

Thank you for that $2200 error. I rephrased parts of my letter as well.

 

Debt Settlement with credit card company.

Hello,

I need more help please.

 

I am going to call by phone but not sure how to handle these obstacles.

How do I reach the low debt settlement amount and get taken seriously when the collection agencies and creditor can see that I am current on my mortgage and Amex credit card and car payment? It is best not to mention relatives helping because then they will push hard for me to squeeze more monies out of them and get hung up on that.

I am over extended and limited in my income due to disability but they make think or challenge me thinking I could or should pay BOA. I need some suggestions on how to verbally get around that since everything I am saying is true?

How do I know if I should go for a settlement after 5 months of defaulting vs waiting a lot longer but not wanting to wait so long that they send me a judgement and put a lien on my house or mess with my disability wages?

I also have my mortgage with BOA.

Here is my situation:

Dear Bank of America,
This letter shall address the debt reflected on a Master Card issued to me by Bank of America, with Account Number _____________. My spouse abandoned me and my little girl ten months ago, leaving us in an awful financial situation and struggling to pay our mortgage . I am disabled and must rely solely on my Social Security, disability benefits to pay my bills. This has resulted in severe financial hardship, making it impossible to pay the debt reflected in the balance on the subject credit card. I have assessed my situation and find that I do not have the resources to pay off this balance, nor can I continue to make the monthly payments required to keep this account current.

I am sincere in my desire to want to do the best that I possibly can to pay off this debt that would work for both parties. The problem is that I have no disposable income or assets. "The Mortgage Balance on my home far exceeds its present value and I am considering giving the lender a Deed in Lieu of Foreclosure, thereby eliminating one more financial burden. As you may or may not already know, creditors cannot attach or garnish any Social Security, disability, benefits and since that is my sole source of income, that will remain intact.

I took this suggestion and after consulting with a Bankruptcy Attorney, I find that I do qualify and, although it would not be my first, or second choice, I am forced to give it serious consideration in light of all my financial difficulties. He informed me that my Social Security Disability Benefits would remain intact because they cannot be reached by creditors. I have a second meeting with the Attorney at which time, I will bring him all of my debts which are dischargeable in bankruptcy.

In order to make sure that I am able to commit some of my limited funds to this credit card rather than nothing at all and to show my good faith, I am offering $2,000 as payment in full and final settlement of this credit card debt. If you can agree to this amount and would agree to remove all penalties and fees in writing then I can commit to sending in this amount by [Date You Will Send in Payment] in the form of a cashier’s check or a money order.

The balance has reached unmanageable proportions resulting from your imposition of late charges, penalties and the high interest levied on my account for several years. Once these excessive charges are eliminated the balance is not only more manageable, but it more accurately reflects my actual usage of the credit card. If you are in agreement, kindly confirm in writing that you will accept my offer of $2,000 in full and final settlement of this credit card debt.

I would request that you consider this good faith offer and let me know of your decision within the next Ten (10) days so that I may act accordingly.

Thank you in advance for your kind consideration,

Expert:  HCLegal replied 1 year ago.
You can tell them that you are getting help from your family to meet your basic living expenses only and that your family is not willing or able to help with your credit cards. you can also say that you are getting help from your church.

I think that your letter is good and I would just tell them the same things over the phone. If they do try to sue you they will not get anything from you as you are what is called "judgment proof" meaning you have no assets or income that they can go after.

Just give them a call and stick to your guns.
Customer: replied 1 year ago.

Thank you,


 


Is it beneficial at all to have a lawyer friend in another state who is not licensed in Arizona and practices only family law send the same letter you read on his attorney letterhead?


 


Should he make the call for me? He knows nothing about the consumer debt laws but he could just state that I am judgement proof and and only able to pay $2000 or we file bankruptcy?


 


or do I have just as much leverage doing all of this myself?

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