Walk Away From DEBT TODAY!

[bryce]

Has anybody here seen this?

This is a guy who I have actually emailed a while ago asking him some questions, and another email has landed in my inbox.

The manual is 65GBP ($150AUD) and he says it works in all countries!

In this economy I am sure there are a lot of people who would be interested in walking away from unsecured debt, and not worrying anymore. I am wondering if anyone on the forum has bought this, tried it, or knows any more about it?

To spend $150 to find out that for some obscure reason it is no good for me, would be a bad choice. There is no guarantee!

Walk Away From Debt:: Owe too much? Use our debt manual to solve your money problems

[sparrow]

nobody can walk away from any debt without going through the legal system in one way or another

as always consult an attorney for matters as such

Ed

[Sean A McAlister]

Originally Posted by sparrow

nobody can walk away from any debt without going through the legal system in one way or another

as always consult an attorney for matters as such

Ed

Spot on there ED!.....And one more thing. .. Everything takes WORK!

[Eric Lorence]

Read this interesting ABC news story as well;

ABC News: Beware of Credit Repair

Best!

[R Hagel]

Agreed.

It could be something pertaining to bankruptcy or settlements, in which the country laws DO matter. Otherwise, maybe the ad is being deceptive, and it's touting a way to make money.

Who knows.

In any case, if it's something legal, consult an attorney. If it's about getting rid of debt by making money, consult the bright minds at the Warrior Forum.

[bryce]

Yeah its one of those things that intrigues me because I have done research into the legal methods of this before. Things and processes are very different from one country to the next.

He says he provides all the letters, so I am assuming it means communicating with the creditors, and he also says it has nothing to do with bankruptcy, insolvency or vuluntary administration.

I always have a problem with things that cost this much to find out more. I heard today on the news that numbers of people looking for "quick riches" and fast ways to make money, are on a serious increase, obviously due to the nature of the market. Makes me wonder how much money this guy is making in non-refunable sales.

[bryce]

Originally Posted by Eric Lorence

Read this interesting ABC news story as well;

ABC News: Beware of Credit Repair

Best!

Yes interesting article and we have the same 30 dat law here in Australia. The same tactic has been used here to remove credit entries on a person's file. However it would seem we dont have the same flurry of "bad" credit repair companies offering their services. It would appear that when investigated, the companies that do provide this service, are using the allowable "Part IV" rules, which is basically just a "formal debt agreement" between the debtor and creditors. However this does not protect secured assets, and relies upon the majority of unsecured creditors accepting the proposed terms of agreement.

The only real way to avoid bad credit - is never to borrow money. I say this because we are now living in times when even the most secure of debtors could be a bad debtor, and through job loss or property devaluation can no longer afford the repayments. None of us is able to predict the future, except to say that "If we dont borrow, we dont owe"

[Mary Gallivan]

Hi

I would imagine the only way to walk away from debt legally is to be made bankrupt.

I wrote a book on getting out of debt which is just sitting on my desktop and not earning me any money at all. I really ought to do something with it. I also wrote a report on dealing with bailiffs.

One thing that prevented me from selling the book was knowing how much to charge. From a moral/ethics standpoint it didn't seem right to charge a lot in order to help people in debt. On the other hand, maybe customers would pay $37 or $47 for information that they could use without spending any more money.

If I could make money from the book I possibly would but it takes so much time to set up a new site and drive traffic to it.

Best wishes

Mary

[bryce]

Originally Posted by Mary Gallivan

Hi

I would imagine the only way to walk away from debt legally is to be made bankrupt.

I wrote a book on getting out of debt which is just sitting on my desktop and not earning me any money at all. I really ought to do something with it. I also wrote a report on dealing with bailiffs.

One thing that prevented me from selling the book was knowing how much to charge. From a moral/ethics standpoint it didn't seem right to charge a lot in order to help people in debt. On the other hand, maybe customers would pay $37 or $47 for information that they could use without spending any more money.

If I could make money from the book I possibly would but it takes so much time to set up a new site and drive traffic to it.

Best wishes

Mary

Hi Mary, you are right on the surface of it. Even with the debt agreements here, you do not walk away from debt. You simply agree to repy it on your terms and not those of the creditors.

I would love to take a look at your book, as this subject is very close to my heart. I see you live in the UK which would have its own laws and associated by laws, when it comes to debt. As a part of he commonwealth there would be similar regulations with Australia.

Here, the legitimate companies do not charge to set up a debt agreement for you. They work out a fee based on your total indebtedness, and then consolidate all unsecured debt into one agreement, including their fee. This is then paid directly to them prior to them disbursing your payments to creditors.

This is going to be HUGE market in the coming months and as I said earlier, we have only just tipped over into a "recession that isnt a recession" and people are already flocking to scams and offers that purport to deliver happiness and financial freedom.

I think the reality will be though, that a larger number of people will become extremely skeptical when presented with anything to do with reducing or eliminating debt.

[gimmick]

Some people might get away from debt by law, if the situation is not their fault, this is maybe going to happen in the US in the future, but not before economy is in balance again.

[Emailrevealer]

I once taught a little class an the FCRA.
The thing about unsecured debt here in the states is that every state has a statute of limitations on that debt. Usually 4 to 6 years and if you can just hold out that long without making any payents the debt is uncollectable. You're off scott free. (If you make a payment it restarts the clock)


They can keep making collection attempts and even bring you to court but your defense is its out of SOL.

[Floyd Fisher]

Originally Posted by bryce

Has anybody here seen this?

This is a guy who I have actually emailed a while ago asking him some questions, and another email has landed in my inbox.

The manual is 65GBP ($150AUD) and he says it works in all countries!

In this economy I am sure there are a lot of people who would be interested in walking away from unsecured debt, and not worrying anymore. I am wondering if anyone on the forum has bought this, tried it, or knows any more about it?

To spend $150 to find out that for some obscure reason it is no good for me, would be a bad choice. There is no guarantee!

Walk Away From Debt:: Owe too much? Use our debt manual to solve your money problems

Let me save you $150 right now and tell you exactly what that manual teaches.

It's called bankruptcy and it can carry major consequences for the rest of your life. I would get some real solid advice from a lawyer before doing that.

[bryce]

Originally Posted by gimmick

Some people might get away from debt by law, if the situation is not their fault, this is maybe going to happen in the US in the future, but not before economy is in balance again.

Yes I think there will be a lot of this raising its head in the next year or so. The trick will be to see if people (on average) can withstand the pressures of debt collectors, before it gets to that point where they can reasonably argue fault and attribute blame. If we do have to wait until balance is again found, I think it will be at least 3 years from now.

Originally Posted by Emailrevealer

I once taught a little class an the FCRA.
The thing about unsecured debt here in the states is that every state has a statute of limitations on that debt. Usually 4 to 6 years and if you can just hold out that long without making any payents the debt is uncollectable. You're off scott free. (If you make a payment it restarts the clock)


They can keep making collection attempts and even bring you to court but your defense is its out of SOL.

We have the same type of statutes here in Australia, and there are also mainstream listing deadlines for bad debt. As an example of this, our major (public) reporting bureaus must by law, remove all bad debt listings at the 5-year point, regardless of whether they have been repaid or not. Bankruptcies on the other hand are removed after 7 years.

However there is a loophole to this. This is when a creditor may sell the bad debt to a new entity. In these situations the original debt may be $1000 but is onsold for say 20% of its face value, ($200). The new owner of that debt will then start chasing you for the original $1000 plus costs and interest if they are entitled under law (a lot depends on what is wrirtten into the original loan contract). The if you refuse to pay or simply dont pay, they can (as a new entity) re-list the debt with the agencies.

[bryce]

Originally Posted by Floyd Fisher

Let me save you $150 right now and tell you exactly what that manual teaches.

It's called bankruptcy and it can carry major consequences for the rest of your life. I would get some real solid advice from a lawyer before doing that.

Hi Floyd,

I wish it were that simple because if it were then the initial promotional material is simply deceptive and misleading. It clearly states "not bankruptcy" and I can't see how it can be if what he professes in that it is "legal in every country" is actually so.

I understand that the laws in US are quite severe when it comes to bankruptcy, and that the impact can be one of everlasting negativity. Here though, the law is not that tough on it. In fact up until about 2 or 3 years ago, it was even possible to be discharged from bankruptcy after just 6 months, as long as you met 3 or 4 very simple conditions. These were related to your income/debt ratio, the total amount of debt, and a couple of other items.

Whats more, I truly believe that after this global mess we are now faced withm the stigma and laws associated with bankruptcy, will have to be reduced in their severity, because a lot of people (as mentioned earlier) are in this position through actions of others, and not entirey their own doing. I know the stigma has already been lessened, the laws will be next.

[Robert Plank]

Here is how to declare bankruptcy in 25 seconds or less ;-)

YouTube - The Office - I declare bankruptcy!...

[bryce]

Originally Posted by Robert Plank

Here is how to declare bankruptcy in 25 seconds or less ;-)

YouTube - The Office - I declare bankruptcy! Michael Scott

ROFL! Love it......

[Scott Ames]

The only real way to get rid of debt in my opinion is the plan that Dave Ramsey teaches. No hype tricks or crap. Just honest talk.

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

[Robert Plank]

Originally Posted by bryce

ROFL! Love it......

You can't just say the word "bankruptcy" and expect anything to happen...

[bryce]

Originally Posted by Scott Ames

The only real way to get rid of debt in my opinion is the plan that Dave Ramsey teaches. No hype tricks or crap. Just honest talk.

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

Hi Scott,

It is amazing what good branding can do. As soon as I saw the surname "Ransay" I immediately thought of Gordon Ramsay, lol.

Anyway yes this guy seems to have the 'real' data avaiable for bankruptcy in the states, and this is what the fundamental difference is. It is information based on American laws, and does not apply to other countries necessarily.

As an example, here a person can pay $330 to a bankruptcy specialist and effectively be bankrupt within a week. When a person declares bankruptcy, they are "entitled" to certain and very specific protection.

1. No more contact from any listed creditors
2. No creditor payments on NET income of $750 per week allowable
3. 50% creditor payments on any income in excess of the $750 net
4. You can keep any vehicle valued at up to $6,000
5. You can keep almost all household goods (unless you have say multiple items of the same type)
6. You are automatically discharged after 3 years
7. Your credit file can only reflect the bankruptcy for 7 years
8. No compensation payments, or inheritences can be claimed by creditors
9. In certain circumstances you even get to keep your home (especially when children are involved)
10. You do not have to divulge your status to your employer
11. You can still be self employed (in a sole trader category)
12. You can still apply for loans up to $3000 without disclosing your bankruptcy.

and there are more. So you can see that the laws pertaining to bankruptcy vary greatly between one country and another, and here it is quite an attractive propostiion for someone continually hounded by debt collectors, and living with the day to day stress of debt.

Dave Ramsay states that going bankrupt is listed in the Top 5, most stressful things in life, and I would agree with that, but living with the constant harassment and threats from commission based collectors is not listed, and from personal experience I would say that this has to be one of the most stressful factors of life. It infiltrates every aspect of your life. They chase you at home, work, through the mail, over the phone, everywhere.

A person I was once in communication with on this issue, said this...

"People have to stop worrying about what other people think of the bankruptcy, and remember that bankruptcy in any country, was put in place to protect the person going bankrupt"

In the worst cases debt causes massive depression and even suicide. This is far worse than any consequences of bankruptcy (imo).

Good read though, I will enjoy reading more about Dave Ramsay has to offer. I am sure he and other like him are becoming very busy people.

[spearce000]

For debt advice in the UK, the best place to look is The Consumer Action Group

I'd say debt management would be a good niche market (times being as they are) except the people in it don't have any money ;-)

[Steven Carl Kelly]

A couple things:

1) I filed bankruptcy many years ago. It was wonderful, because the stress was unbearable. And immediately after my debt was discharged, I was deluged with new credit offers. I got a credit card immediately.

2) There is an old, established debt reduction system that has been used effectively for decades. If I am not mistaken, John Cammuta teaches a variation of this process in his "Transforming Debt into Wealth" system. I can easily outline the whole deal in a few sentences. And it works.

[valerieSONORA]

Don't buy it. These so called repair companies just sell you things you could do for free yourself.

I have never used one, but someone hired me to research and write articles warning about credit repair.

Some companies just sell you very expensive generic letters to send to the credit reporting agency to dispute items on your credit reports. You can write the same letters or emails for free.

If you are in debt, the last thing you need to do is throw away more money.

[Emailrevealer]

You can't really do credit repair yourself without first doing a lot of research . You could make things worse.

For example:
If you send a validation letter and the creditor cannot verify the debt but simply validates the collection amounts and your contact information and you do not reject that you have just allowed them to validate a debt that is likely to be uncollectable.

For example if you contact a creditor to negotiate a debt you could be validating that debt.

If you contact a creditor with a "good will" letter to remove latenesses from your account unless you word it correctly they could interpret it as a validation request. This could add a second entry into your credit report and prohibit you from ever getting the lateness removed.

[Steven Carl Kelly]

But is this even credit repair or is it debt reduction? Completely different things.

[Floyd Fisher]

Originally Posted by bryce

Hi Floyd,

I wish it were that simple because if it were then the initial promotional material is simply deceptive and misleading. It clearly states "not bankruptcy" and I can't see how it can be if what he professes in that it is "legal in every country" is actually so.

I understand that the laws in US are quite severe when it comes to bankruptcy, and that the impact can be one of everlasting negativity. Here though, the law is not that tough on it. In fact up until about 2 or 3 years ago, it was even possible to be discharged from bankruptcy after just 6 months, as long as you met 3 or 4 very simple conditions. These were related to your income/debt ratio, the total amount of debt, and a couple of other items.

Whats more, I truly believe that after this global mess we are now faced withm the stigma and laws associated with bankruptcy, will have to be reduced in their severity, because a lot of people (as mentioned earlier) are in this position through actions of others, and not entirey their own doing. I know the stigma has already been lessened, the laws will be next.

If he's saying it's not bankruptcy, then he's full of it.

I've heard of similar crap before, and it's usually illegal as hell.

Anyone ever heard of 'Boston Harbor Company'? The guys who claimed to be able to resolve all real estate woes by transferring title to them? That thing was a scam from the word go. They got the property, and you were left holding the debt.

Remember when people told you to incorporate and get tax ID's to hide old credit woes? That violated so many banking laws, it was unreal (as people who tried that trick found out post haste).

There is 101 other things out there too...all illegal (and too many for me to list).

If it sounds too good to be true, it probably is.

[nRehman]

Walk Away From DEBT TODAY! may be possible but not today, because debt problems are different with different people that need a through study. ebooks on a subject play a great role in understanding this critical financial situation and knowing about ways to have solutions to the problem. Why people purchase such kind of information because they want to hear the answer in a way they want to hear.. that's why smart people uses phrases as a title used above which reflects answer to the people in problem that they are looking to get.

Its good to get knowledge to know how much open space you have but you still require a professional and certified peoples to consult and remove your problems. And always know if you have find such material online without specifying which country it works for, its for US.

[Steven Carl Kelly]

Walk away from debt IS possible without bankruptcy. These days, many creditors with unsecured accounts (like credit cards or signature loans) are much more willing to agree to a settlement.

Say you owe $7,000 on a credit card and the interest rate is 29%. You contact the credit card company (presumably using these pre-designed letters that the seller will provide) and explain that you will never be able to pay, you are suffering a financial hardship, you are considering bankruptcy, and offer to settle your account for $3,500 in exchange for closing your account and setting up pre-authorized direct debits from your bank account.

Credit card companies in particular are now accepting these deals on a more frequent basis. If you are able to negotiate that with them, then in essence you are actually "walking away from" $3500 in debt in the above scenario.

Of course, by closing and settling your account you will take a hit on your credit rating, but you will also have less to pay back -- legally, and without getting the court involved.

This is the same method used by these companies you hear on the radio advertising that they can make your collection calls stop ("this is information your credit card company DOESN'T want you to know about!") and legally "erase" debt.

[Richard Tunnah]

Originally Posted by Emailrevealer

I once taught a little class an the FCRA.
The thing about unsecured debt here in the states is that every state has a statute of limitations on that debt. Usually 4 to 6 years and if you can just hold out that long without making any payents the debt is uncollectable. You're off scott free. (If you make a payment it restarts the clock)


They can keep making collection attempts and even bring you to court but your defense is its out of SOL.

It's 6 years in the UK although dodgy debt recovery firms buy older debts and try and recover the full debt by being heavy and aggressive. There's been a case locally to me where a young women committed suicide over a debt dating back 10 years. Lot of fuss about it as you'd expect.

Rich

[riff]

Originally Posted by Steven Carl Kelly

Credit card companies in particular are now accepting these deals on a more frequent basis. If you are able to negotiate that with them, then in essence you are actually "walking away from" $3500 in debt in the above scenario.

It should be noted that the forgiven debt amount becomes income and has to be included as such on your tax return. This is important to note becasue you'll want to retain funds to pay your increased tax liability at the end of the year.

[Steven Carl Kelly]

Originally Posted by riff

It should be noted that the forgiven debt amount becomes income and has to be included as such on your tax return. This is important to note becasue you'll want to retain funds to pay your increased tax liability at the end of the year.

Correct! Thanks for adding that, I had completely forgotten.

[mr2monster]

Originally Posted by sparrow

nobody can walk away from any debt without going through the legal system in one way or another

as always consult an attorney for matters as such

Ed

DIY debt consolidation works like this (debt consolidation companies do it the same way). (ask me how I know :P)


1. Stop paying your credit cards entirely. (unless you want to keep one open because all the rest will be closed, sometimes even ones in good standing get closed when you consolidate debt)
2. Set up a Trust Account
3. Pay your trust account instead of credit cards - Set up a payment that is affordable, but strict.
4. Accumulate money over time.
5. Deal with them calling you... because they will.
- disconnect your phone and get a magic jack for 19.95 a year if you don't want to hear from them.
- Inform them that your cell phone (if they have it, if they don't never give it) is a WORK phone.
6. When you have a decent chunk of change, (about 25% of one card), call the card and tell them you wish to settle for $X.
7. If they accept, do it. If not, keep paying the trust account. DO NOT SIGN ON WITH THEM TO CONSOLIDATE.
8. Repeat until all cards are paid off for a fraction of actual debt.


*Pay 1 card off at a time, for as little as they'll accept.
*Realize that your credit will be absolutely shot.
*Learn to manage your money better
*Pay for credit repair once the bleeding is done.


Trust me when I say it's possible to pay your cards off for as little as 15% of your balance.


This should allow most anyone to get out of debt within 36-48 months.




Also, interesting little tid bit of info:

For a borrower that maintains an average of $1000 on their Visa card over 1 year (so, you charge 1000, pay 250, charge 250, etc) Visa will make roughly $3100 on you maintaining that 1000 balance. NOT just in interest that you pay... but in merchant fees along with a few other nifty tricks they have.

[mr2monster]

Originally Posted by riff

It should be noted that the forgiven debt amount becomes income and has to be included as such on your tax return. This is important to note becasue you'll want to retain funds to pay your increased tax liability at the end of the year.

This is dependent upon the state.

In some states, creditors can obtain deficiency judgments rather than 10-99 you for the unpaid balance.

[dorim]

Originally Posted by mr2monster

DIY debt consolidation works like this (debt consolidation companies do it the same way). (ask me how I know :P)


1. Stop paying your credit cards entirely. (unless you want to keep one open because all the rest will be closed, sometimes even ones in good standing get closed when you consolidate debt)
2. Set up a Trust Account
3. Pay your trust account instead of credit cards - Set up a payment that is affordable, but strict.
4. Accumulate money over time.
5. Deal with them calling you... because they will.
- disconnect your phone and get a magic jack for 19.95 a year if you don't want to hear from them.
- Inform them that your cell phone (if they have it, if they don't never give it) is a WORK phone.
6. When you have a decent chunk of change, (about 25% of one card), call the card and tell them you wish to settle for .
7. If they accept, do it. If not, keep paying the trust account. DO NOT SIGN ON WITH THEM TO CONSOLIDATE.
8. Repeat until all cards are paid off for a fraction of actual debt.


*Pay 1 card off at a time, for as little as they'll accept.
*Realize that your credit will be absolutely shot.
*Learn to manage your money better
*Pay for credit repair once the bleeding is done.


Trust me when I say it's possible to pay your cards off for as little as 15% of your balance.


This should allow most anyone to get out of debt within 36-48 months.




Also, interesting little tid bit of info:

For a borrower that maintains an average of $1000 on their Visa card over 1 year (so, you charge 1000, pay 250, charge 250, etc) Visa will make roughly $3100 on you maintaining that 1000 balance. NOT just in interest that you pay... but in merchant fees along with a few other nifty tricks they have.

What is to stop the credit companies from forcing you into bankruptcy to seize your home and any other assets you own? If they take you to small claims court you can get your paycheck attached for a sum of money each week. The system you posted may work for somebody who doesn't own property.

[reikidad1961]

If you wracked up then pay it. There are no shortcuts to getting out of debt and even filing bankruptcy leaves somebody else holding the bag for your debt.

[reikidad1961]

Originally Posted by dorim

What is to stop the credit companies from forcing you into bankruptcy to seize your home and any other assets you own? If they take you to small claims court you can get your paycheck attached for a sum of money each week. The system you posted may work for somebody who doesn't own property.

Yes, they can force you into bankruptcy and they can take your assets like your home, auto, jewelry and whatever else you have of value.

[mr2monster]

Originally Posted by dorim

What is to stop the credit companies from forcing you into bankruptcy to seize your home and any other assets you own? If they take you to small claims court you can get your paycheck attached for a sum of money each week. The system you posted may work for somebody who doesn't own property.

As far as I know, no one can legally "force" you into a bankruptcy... Filing for BK7 or BK13 is ultimately up to you.

Also, owning property doesn't really come into play too often unless you have massive amounts of debt (from what I've seen) and massive amounts of "assets". They would have to first gain a judgement, which as long as you don't just ignore the notices of filing can take a very long time. You can further buy time by sending QWR (qualified written response) letters through the court system, or seeking legal help.

Then they would have to assign a trustee to "divvy up the goods" and sell it at auction. Certain things are exempt from this, and the rest of your crap, well, it's really down to what kind of a person the trustee is. Most trustees won't waste time with anything that isn't going to make a serious dent (they get paid based on what they're able to sell, but selling something for $100 isn't worth their time, it makes them about 15 bucks and takes the same amount of time as a more valuable item).

The only things you need to worry about in this case are things like:
boats
investment properties (that you haven't bought under a LLC or S-corp)
RVs
quads
Expensive toys over about $5000
etc.

Homes are exempt
Primary Vehicle is exempt up to a certain value (depends on state)
Musical instruments are exempt
Tools of the trade (laptop to hard tools, anything you use to make money) are exempt
etc.


This is all on the off chance that they ARE able (not only able, but willing to take it this far) to get a judgement (often times they don't even try, they just do a charge-off).

And IMO, if you've got 50K in debt and you're struggling, you should be SELLING your toys in order to get that debt gone... So you shouldn't have to worry about that.

[mr2monster]

Originally Posted by reikidad1961

Yes, they can force you into bankruptcy and they can take your assets like your home, auto, jewelry and whatever else you have of value.

Again, (AFAIK) no one can legally force you into a BK.

They can't take your home, most of the time not your auto (unless it's a lambo or something stupid).

They can take jewelry if they went through the process of obtaining a judgement.








Let's think about this though.

It's going to cost them THOUSANDS of dollars in attorney fees and court costs, employee time, etc etc etc.

If you're willing to settle with them, they're going to take it vs. not getting anything if they go down the judgment route.





Also, I'd like to state that none of this is to be construed as legal or financial advice, please seek the opinion of a qualified 3rd party if you plan on doing this. I'm only stating what I've seen as a result of my own experiences.

I've filed BK, Settled my own debt, lost my house to foreclosure.... I've got lots of experience in this. (All in the same year btw, and as a result of the same set of circumstances).

[George Wright]

Hi All,

What's interesting to me here is the Statistics on this thread.

One. The original post is almost a year old. (this is in no way a "why are you bringing back an old post" complaint.)

Two. The thread has over 1,400 views with only 30 something replies.

The high views to low replies is very unusual.

Something here tells me this is a hot niche. Of course I know it's a hot niche off the WF but even here it's a hot topic.

George Wright

[Kay King]

It's interesting to me that someone who's been here long enough to know better bumped this thread though provided nothing new.

Of course it's a hot niche...just like "Make $2000 this week with no work"

And about as believable.

But some people always believe it when you tell them what they want to hear.

kay

[Steven Carl Kelly]

Originally Posted by dorim

What is to stop the credit companies from forcing you into bankruptcy to seize your home and any other assets you own?

They can't, your home is protected and usually your primary vehicle as well. Besides, creditors are NOT interested in this, they'd much rather settle. In bankruptcy the could get nothing at all. Any assets, assuming there are any (usually there are not) would have to be sold and divided among ALL of the creditors.

No, most creditors -- especially credit card companies -- would rather have the bird-in-the-hand. And as noted upthread, in most cases these creditors have made FAR more profit from these accounts than they will be losing in a settlement.

[Thom McCarroll]

Originally Posted by Steven Carl Kelly

They can't, your home is protected and usually your primary vehicle as well. Besides, creditors are NOT interested in this, they'd much rather settle. In bankruptcy the could get nothing at all. Any assets, assuming there are any (usually there are not) would have to be sold and divided among ALL of the creditors.

No, most creditors -- especially credit card companies -- would rather have the bird-in-the-hand. And as noted upthread, in most cases these creditors have made FAR more profit from these accounts than they will be losing in a settlement.

That's why OJ moved from California to Florida because of the exemption (not so in Cali) .... Oh that's right he is in jail now and the bank took his house back .... sorry bad joke

[Rueann42]

Originally Posted by bryce

Hi Scott,

It is amazing what good branding can do. As soon as I saw the surname "Ransay" I immediately thought of Gordon Ramsay, lol.

Anyway yes this guy seems to have the 'real' data avaiable for bankruptcy in the states, and this is what the fundamental difference is. It is information based on American laws, and does not apply to other countries necessarily.

As an example, here a person can pay $330 to a bankruptcy specialist and effectively be bankrupt within a week. When a person declares bankruptcy, they are "entitled" to certain and very specific protection.

1. No more contact from any listed creditors
2. No creditor payments on NET income of $750 per week allowable
3. 50% creditor payments on any income in excess of the $750 net
4. You can keep any vehicle valued at up to $6,000
5. You can keep almost all household goods (unless you have say multiple items of the same type)
6. You are automatically discharged after 3 years
7. Your credit file can only reflect the bankruptcy for 7 years
8. No compensation payments, or inheritences can be claimed by creditors
9. In certain circumstances you even get to keep your home (especially when children are involved)
10. You do not have to divulge your status to your employer
11. You can still be self employed (in a sole trader category)
12. You can still apply for loans up to $3000 without disclosing your bankruptcy.

and there are more. So you can see that the laws pertaining to bankruptcy vary greatly between one country and another, and here it is quite an attractive propostiion for someone continually hounded by debt collectors, and living with the day to day stress of debt.

Dave Ramsay states that going bankrupt is listed in the Top 5, most stressful things in life, and I would agree with that, but living with the constant harassment and threats from commission based collectors is not listed, and from personal experience I would say that this has to be one of the most stressful factors of life. It infiltrates every aspect of your life. They chase you at home, work, through the mail, over the phone, everywhere.

A person I was once in communication with on this issue, said this...

"People have to stop worrying about what other people think of the bankruptcy, and remember that bankruptcy in any country, was put in place to protect the person going bankrupt"

In the worst cases debt causes massive depression and even suicide. This is far worse than any consequences of bankruptcy (imo).

Good read though, I will enjoy reading more about Dave Ramsay has to offer. I am sure he and other like him are becoming very busy people.

Professionally I have worked with people going through or about to go through bankruptcy. It is emotionally very very difficult, and frequently can lead to depression. Here bankruptcy (BK) is considered shameful and the people I knew, especially the men, felt like failures. The only worse thing I know in the financial arena is to be caught having defrauded people out of their life savings. Note that I said "caught." Don't think I could bear to have my name all over the news with that kind of issue.

[threatlevelorange]

Originally Posted by Steven Carl Kelly

A couple things:

1) I filed bankruptcy many years ago. It was wonderful, because the stress was unbearable. And immediately after my debt was discharged, I was deluged with new credit offers. I got a credit card immediately.

2) There is an old, established debt reduction system that has been used effectively for decades. If I am not mistaken, John Cammuta teaches a variation of this process in his "Transforming Debt into Wealth" system. I can easily outline the whole deal in a few sentences. And it works.

Please do outline it.

[nRehman]

Originally Posted by George Wright

Hi All,

What's interesting to me here is the Statistics on this thread.

One. The original post is almost a year old. (this is in no way a "why are you bringing back an old post" complaint.)

Two. The thread has over 1,400 views with only 30 something replies.

The high views to low replies is very unusual.

Something here tells me this is a hot niche. Of course I know it's a hot niche off the WF but even here it's a hot topic.

George Wright

This is not a secret but while searching online I got this post in the google, I checked this out give my remarks, then I don't know what happened and this older post increased its weight more than it were leaved last year. Now you can't say its an outdated post because people have amended it with the changes took place according to today's debt market.

[Scott Ames]

I don't know how this was not moved to the Product Review forum.

[MyFortuneNow]

One thing most people aren't aware of is credit repair companies make you not pay your credit cards in order to reduce your debt. The idea is in order to negotiate to creditors they need as much leverage as possible. So basically they are telling you to pay them so they can help you screw your credit and negotiate with creditors, which is something you could have done in the first place and saved yourself thousands of dollars.

Can you tell how much I love these companies haha.

Joel

[MacFreddie]

Take it from a Credit Guru

A Credit/Debt book is usually worth $20..

But a Credit Manual with 2 CD's is worth $197

Mac

P.S. A TON of bad, misleading, myths are being given here, Only listen to Credit Gurus :-)

Originally Posted by Mary Gallivan

Hi

I would imagine the only way to walk away from debt legally is to be made bankrupt.

I wrote a book on getting out of debt which is just sitting on my desktop and not earning me any money at all. I really ought to do something with it. I also wrote a report on dealing with bailiffs.

One thing that prevented me from selling the book was knowing how much to charge. From a moral/ethics standpoint it didn't seem right to charge a lot in order to help people in debt. On the other hand, maybe customers would pay $37 or $47 for information that they could use without spending any more money.

If I could make money from the book I possibly would but it takes so much time to set up a new site and drive traffic to it.

Best wishes

Mary

[George Wright]

Actually Kay,

I didn't bump the post, someone else did and I caught it on page one. (I think you are talking to me)

And as far as being believable, Although credit repair and reduce your debt reports have a bad rep. there are some methods that do work. A very close friend of mine helps people who are in trouble with credit. He is their hero.

I even started a forum with this as a subject, however, I didn't pursue it because for a while what works and what doesn't work changed every month, then every week and now sometimes every day. My friend keeps on top of everything because this is what he does. I just couldn't keep up.

George not the original bumper Wright

Originally Posted by Kay King

It's interesting to me that someone who's been here long enough to know better bumped this thread though provided nothing new.

Of course it's a hot niche...just like "Make $2000 this week with no work"

And about as believable.

But some people always believe it when you tell them what they want to hear.

kay

[BigRedNotebook]

I'm not a lawyer.
I bailed out of law school just in the nick of time.

While in law school, I clerked for a firm that did brisk business in bankruptcies.

One of my best friends (the best man at my wedding, in fact) has a practice that specializes in consumer protection actions and bankruptcies.

Based on an academic understanding of bankruptcy law, real-life experience gained by assisting clients with their bankruptcy filings and frequent interaction with a professional bankruptcy expert, I have a piece of advice...

Don't take anything you've read in this thread too seriously.

Seek professional counsel. Seriously.

[riff]

Originally Posted by mr2monster

This is dependent upon the state.

In some states, creditors can obtain deficiency judgments rather than 10-99 you for the unpaid balance.

I'm not sure this is entirely accurate in the context of my reply. As a banker, my understanding of a deficiency judgment is a judgment for the remaining balance after an asset sale, such as a foreclosure or vehicle repo. For example, the lender could file suit for the the remaining balance on a car or home after the house or car has been sold at auction.

You're talking about a forced action. We were talking about agreed upon settlement terms. The lender is agreeing to settle the debt for less than the owed amount. In this case, they relinquish their right to deficiency judgment. It would be clearly stated in the lender agreement as such. Otherwise, you haven't actually "settled" anything. You simply made a lump payment. Whatever balance left over past the agreed settlement amount becomes income.