Re: Severe Debt

Posted by Keyser Soze (205.188.208.41) on September 06, 2003 at 22:25:57:

In Reply to: Severe Debt posted by Jack on September 06, 2003 at 12:10:50:

Dear Jack,

I am not recommending you file for bankruptcy. Only you can make that choice, do some research, talk to a bankruptcy lawyer or three and carefully think it over. Your friends hold the mortgage on your property. As long as this agreement is in writing and predates any filings that arrangement should stand.
You might just stonewall these bugs instead, weather the storm of lawsuits from collectors which may come or may not. Remember Jack, sometimes it is better to owe much than little. Discover Card will sue anyone over a few hundred dollars if that's all that's owed. They know they'll get it. On the other hand when one owes thousands the collectors are reluctant to spend money suing when they are just one of many creditors.
Also, the earnings of 'head of household' in FL are exempt from garnishment and the earnings of the spouse are protected up to a certain amount. Asfar as IRS, always best to report every penny of income to the IRS. You generally won't go to jail for a questionable deduction but non-reporting of income is tax evasion, a crime severely punished. Even if it's cash earnings report them. You'll be obedient to our Creator's laws and man's. You can always come up with deductions to offset excessive earnings.
As far as these Debt Consolidation companies, the first syllable - "Con" - is the one to accent. These jerkxxx's will cause you more trouble than you can imagine. Signing up with them will restart the Statute of Limitations on the debts, many times payments don't quite make it to the creditors - funny thing about that - and anything they can do for you you can do for yourself at less cost.
They are just another arm of the credit & collections monster. Avoid like the plague. You may be in better shape than you realize though it's doubtless hard to believe that. Also in general Bankruptcy is the decision of last resort. Stay in touch.

Touchingly,

Keyser Soze

"Keaton was Keyser Soze!"
- Agent Dave Kujan, US Customs,
"The Usual Suspects", c. 1995

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