The Rundown on Debt Elimination

Posted by Russell (67.0.217.133) on December 01, 2003 at 01:49:27:

After being with an unnamed complete debt elimination program for over a year now, here's some things I think I must tell EVERYONE. If you've got one hell of a conscience, this isn't going to be an easy time for you. You will get calls and letters, you can tell them to stop calling because under the FDCPA they MUST. Give them another, fake number. If you are going to get into a Complete debt elimination program, it's important you do some things... First make sure all your automatic payments and debits STOP completely to your card. If you have any pending disputes on the card, wait until those are settled till you begin! The debits will of course put you in a bad light if you continue to make them after you cease making payments. You are the honest party here and must do your best to be honest in this situation. Some Complete debt elimination programs do this through arbitration. The one program I am in it took about 6 months to get the arbitration decisions in my favor against Bank one and Emerge Mastercard, both debts amounting to an excess of $25,000. However many card companies don't have an arbitration provision, in which case the debt is charged off to a third party collections agenccy. You need to know the BIGGIES in suing people are CITI bank and MBNA usually initiates all the arbitration procedures. Collection agencies probably won't sue if they see you're not paying other debts on your credit report. Of course the Collection agencies will try and get a judgement to attach the debt to your mortgage or try and take property from you to pay the debt. It is IMPERATIVE that you remember one VERY important form, the Claim of Exemptions form. This form when filled out property will protect portions of your house, car, and even some real property from being used to pay the judgement creditor. Each state's COE form is different, in some you can either choose to exempt equity in your house or a value in property you own. As far as i know, NO states will let the police take your clothes or furniture. It's important you understand your rights here because once you do, you will be able to protect yourself, and you won't be afraid. I've said this once, and I'll say it again, Bankruptcy should be used ONLY as a last resort! Unless you are like $20k or more in unsecured debt should you consider that option. Just remember your motivation, you are eliminating your debt because you no longer want to be part of the credit system, and I can only morally also recommend that after you finish this process to only used secured or debit cards for now on.

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