If i contact my creditors to reduce my interest rate and forgive my late payment fees or I will be filing for

Question

bankruptcy can they do anything to me?

My husband was demoted from his job (instead of being let go in the massive lay offs his company performed) he makes roughly $2500 a month before taxes (HUGE PAY CUT).

$2500

-$725 rent

-$300 car note

-$200 car insurance

-$600 health insurance

-$200-300 gas WITH a gas efficient car.

which leaves us with $475 to $375 a month for bills and groceries. We DON'T go eat out, go see movies, or basically participate in any activity that requires money (life sucks). We are also expecting our first child and the medical bill is ridiculous EVEN WITH insurance.

Now my letter states our problems and our expenses. We would like to make full payments on what we actually owe (our principal) and would like for them to forgive late payment fees as well as the interest rate. If they don't accept and we can't come up with a solution I mentioned that we will be filing for bankruptcy. MY question is, now that I am letting them know that filing for bankruptcy is an option what can they do in order to prevent me from filing?

Can they sue me for the whole amount of principal interest rate late fees? and in doing so prevent me from filing?

I am just wondering if letting them know about bankruptcy would make them accept my offer. Or is there another way? Any help is greatly appreciated

Answer 1

Talk to Consumer Credit Counsel for information, they are knowledgeable about "debt management."  Talk to an experienced attorney that specializes in bankruptcy only, who is near the bankruptcy court. You may want to wait to file until after your child is born, as you do not know how much medical expenses there will be, and you can only file bankruptcy once. Medical is a very good reason for filing bankruptcy. You may have to send your creditors the minimum payment to show you are trying.  

Answer 2

Actually,your credit may take less of a hit if you just stop paying the creditors, let your accounts go to a junk debt buyer, dispute the accounts with the CRAs and see if you can have them removed.  Either way, bad debt only remains on your credit report for 7 years whereas bankrupcy remains for 10.  

Answer 3

booger