what do I do if greenpath, a credit counseling place, works w me in paying credit card debt and they say it'll be 80 percent of my monthly income. What do I do
File Bankruptcy. THe result to your credit will be the same. You have a 90% chance of completing a Chapter 7 if you qualify. You have a 10% chance of completing their credit counseling program. That's right they have a 90% failure rate. Nationwide very few people complete credit counseling. A Chapter 13 has the same results but payback plans in a Chapter 13 are affordable and plans can go down to 1% in a Chapter 13. Try to find a 1% plan in credit counseling. Credit Counselors work for your creditors not you. They get their commission from how much you pay back. The more they get you to pay back the more they get paid. Your attorney works for you. You pay his flat fee for the bankruptcy. He works to get your Chapter 13 plan payments as low as possible.
Often these places file bankruptcy themselves like ameridebt did. When they close or file bankruptcy your money goes down the drain with them. The just open up doing business in another state. Did you ever hear of the bankruptcy court going out of business????
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That's easy, that means you have way too much debt. If you can't afford a standard consumer credit counseling plan....that means YOU ARE BANKRUPT. So, you speak to a bankruptcy attorney who can reveiw your circumstances and come up with the best option to resolve your debt.
You should think about filing for bankruptcy. Many of us offer free initial consultations so it does not cost you anything to have your finances evaluated to see if it is the best option for you. Most of us will help you review your income, expenses, debts and assets as well as any potential pitfalls you may encounter if you file. If you want to file, it will cost money but many of us offer payment plans. It is worth it to check it out if you are that upside down with things.
If you pay your necessary living expenses first, how much do you have available to put towards paying debts? You can't survive if you pay debt before paying rent, power, transportation, groceries, etc. Time to take a look at reality before making a decision. If you can live on 20% of your income, credit counselling might work for you. But not for mos folks. Hope this perspective helps.
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