Join Early Retirement Today
Thread Tools Search this Thread Display Modes
The Day of "Debt" Reckoning
Old 11-29-2010, 04:00 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2007
Posts: 5,075
The Day of "Debt" Reckoning

No surprise here.

Boom in Debt Buying Fuels Another Boom—in Lawsuits -

Since Bankruptcy laws were tightened on debt in 2005, many who would have walked away in the past will have to meet their obligation.

Chapter 7, Title 11, United States Code - Wikipedia, the free encyclopedia

Those that were imprudent and not careful are getting a lesson they will probably not repeat (most people)... for the reckless spendthrifts and ne'er-do-wells; It's just another day in the life.

chinaco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-29-2010, 07:09 AM   #2
Confused about dryer sheets
Join Date: Nov 2010
Location: New York
Posts: 1
As for me filing bancruptcy is not the best way out. Isn't it better to try debt settlement programs instead? At least they will save your credit score.

Say what you think, but think what you say.
AlexN is offline   Reply With Quote
Old 11-29-2010, 07:19 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,135
Originally Posted by AlexN View Post
As for me filing bancruptcy is not the best way out. Isn't it better to try debt settlement programs instead? At least they will save your credit score.
Not a "black or white" issue:

Let me Google that for you:

"debt settlement programs" +"credit score" - Google Search

Effects On FICO Score
During the time when you go through the credit debt settlement process, you pay to the company, not to your creditors. It is only after the company collects a reasonable amount of money when your creditors are paid. If you are making a one-time lump sum payment, there will be no negative impact on your FICO score because of this. But again, since you are not paying your creditors in full as you had agreed upon at the time of the commencement of the loans, it will definitely affect your credit. In your credit report, all those debts will be marked as “paid, but not as agreed”. This will result in a reduced FICO score.

Overall, credit debt settlement programs can be very helpful in getting rid of the high amount of debts you are struggling with, but it is also very much likely to affect your FICO score adversely. Besides that, since you are supposed to make the payment in advance to the company, there is always a risk of losing your money if the company is an unscrupulous one. Therefore, if you must go for these programs, make sure you first do a thorough research and analysis.
I would suggest real legal advice from a real your own attorney before considering such a "service."
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Old 11-30-2010, 06:56 AM   #4
Thinks s/he gets paid by the post
teejayevans's Avatar
Join Date: Sep 2006
Posts: 1,169
SEC just crack down on debt services, requiring them to only take fees IF they are successful, many were charging huge fees knowing they couldn't do squat. Most banks won't even talk to them. There are some legitimate non-profit help out there.
teejayevans is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
"We'll pay you $3/day to stay healthy, and that's our final offer." Nords Health and Early Retirement 5 06-27-2009 09:23 AM
"CC debt" add on: best card for rewards? tightasadrum FIRE and Money 36 01-08-2009 08:49 PM
"Piglet Sodomizer" on debt PART 2 camberiu FIRE and Money 0 05-15-2007 04:11 AM
"Piglet Sodomizer" on debt camberiu FIRE and Money 9 05-14-2007 10:35 AM
Any opinions on the "Daily Reckoning" website? SLC Tortfeasor Other topics 18 07-21-2005 10:24 AM


All times are GMT -6. The time now is 06:33 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.