Hello,
Just joined. I'm tired. Above all, I'm tired of being scared. I joined creditsolutions. I am paying them so much. I have so much debt, but we've gone through some really bad times, very unexpected. We don't have the income. Anyway, I'm trying to pay it all back through settlements, but they are all falling due at once. Now I get this letter from Hannah. They made an offer I couldn't accept because of all of the other payments I have falling due. They offered something much lower, if I paid it as a lump sum. I accepted. They pulled my credit and decided to not honor that offer. They decided to bump it back up. I don't know what they saw, except that I am collecting money to pay back the other settlements. I can't do theirs.
So here are my questions:
How fast can they get a judgment against me? Do I have time to start a bankruptcy filing?
I'm really leaning toward that. I think this settlement option has been a run around, and they are really trying to break me, even with the aid of a place like creditsolutions. As I said, I'm tired. I wish I hadn't given all that money to creditsolutions just to end up in bankruptcy anyway though.
Also, can they try to take my chil's 529? I can't think what they saw on the report. I've liquidated everything. I have no income and no assets right now. My daughter has just a little stashed in the 529. Is that what they are thinking of getting their hands on? Why don't they just accept the lump sum.
What should I do? Any thoughts?
Thanks,
Fraktured
Hi scarletone,
Do you have a letter of acceptance with you to testify the negotiation between you and the company? Anyways, I think you have quite some time to file a bankruptcy, since getting a judgment takes a considerably long time. However, you need to decide whether you wish to opt for chapter 7 bankruptcy or chapter 13 bankruptcy.
The creditor I believe cannot garnish 529 savings, though it depends on the statutes passed in different states. Had you told me which state you belong to, I would have told you specifically whether your 529 savings could be garnished. Anyway, if you belong to Arkansas, Oklahoma or Kentucky, then 529 assets are protected from creditor’s claims through statutes.
scarletone, although I never heard of a 529 myself, I feel it would be unfair for a creditor to be able to take a childs savings. If it does go in front of a judge for either bankruptsy or judgement then hopefullt since you are making payments then they will not be able to attach the savings.
I understand where you are coming from having faced a similiar situation years ago when my first hubby passed. If you are finding yourself broke with nothing left over and the stress is endangering your health bankruptsy may be your answer to a fresh start. Even if you have placed money in the credit solutions it does not seem like ti is working well and maybe another route would be better for you and your child. Let us know if we can help anymore. Good Luck.
I live in Illinois. Sorry, I meant to say that. I noticed in so many posts that is asked before a full answer is given. Duh! I totally forgot. It was late at night, and I was so down about that.
Hopeful?
Illinois isn't specifically protected, but I think that's only if it's my 529 (for my benefit). It's my child's though, for her benefit. I don't know if they can get at funds held for another (beneficiary) just because I am the account holder. I can't use them for myself. It's not like it's a lot, but I would hate for them to go after that.
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