Go to Jeff Salisbury LWGate Home Page.From: Jack Schnapper <jack@kajor.com>
Subject: Big Time Debt Problems
Date: Thu, 22 Mar 2001 07:46:48 -0500
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Due to circumstances that I am certain are familiar to some of you I have gotten myself (as well as my wife) very deep in debt. Of course we have the first mortgage and then the second mortgage that I took out to pay off all the plastic. Well, I didn't learn my lesson and got right back up there (actually much more) and my employment situation changed, greatly reducing our income. So here we sit owing an enormous amount of unsecured debt (plastic plus checking account overdraft line of credit). Recently I have been hearing from several of the credit card companies that they are very close to charging off our account as a bad debt. They then go on to tell me that they may still turn it over (or sell it) to a collection agency or attorney to try to collect whatever they can. I have been told that they could possibly file a lien against our house or even force us into bankruptcy. Our house has inflated quite a bit since we bought it 14 years ago and in our state (Maryland) only $7,500 in equity is protected. We have quite a bit more equity than that. We have considered refinancing but our credit scores are so bad that the best rate we can expect to get is @ 10% or more. Our existing first mortgage is a 15 year fixed rate loan (6.375%) with @ 7 years to go. Our second mortgage is for 30 years at @ 9.25%. If a credit card company writes off our account (and, from what I understand, deduct that amount from their income for tax purposes as a bad debt) can they still sell it to someone who will then harass and threaten us and possibly force us to either sell our house or to file for bankruptcy? I'd appreciate it if replies can be sent via email to jss@mailzone.com as well as posting them here for others to see. Thanks, Jack - -
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