[USER]

I need some advice. I was going to file bankruptcy, but have not saved up the funds yet to do so. Got a letter today that I am being sued from discover bank.

My pension fund also sent me a letter saying that they’re offering a one payment lump sum, which may be able to pay off all my debts. Or I could do nothing.

Should I do bankruptcy [cost 2k) or do the lump sum and just pay everything off? I am concerned about this lawsuit.

[Kirsten]

Don’t give away your retirement for unsecured debt.

[Gloria]

Attorney first. Don’t take your retirement funds. They may be protected from bankruptcy

[Gene]

Do not use your pension money to pay debt! They can’t touch your retirement! See if there is a free consumer credit agency that can advise you.

Or get a free bankruptcy attorney consult.

Credit Card companies will usually offer a lower settlement amount.

[Kristen]

Speaking from experience in working with Discover…as long as you are in communication with them and putting something toward the debt, even $20, they will not move forward against you.

It takes a long time for it to get to the point of garnishing wages, etc.

The worst you can do is stop talking to Discover.

They have bigger fish to fry while they are negotiating with you.

[Bridget]

What is your total debt amount? What is the total amount of your pension?

[Kimberly]

You can always talk to debtors and they will settle for alot less than you owe and stays same on credit history

[Deeann]

Don’t touch your retirement. Talk to a bankruptcy attorney to get the best advice.

[Kayma]

Your pension is worth more than the lump sum…it will pay you for years! Don’t take the lump sum.

[Robin]

No, a credit card company generally cannot take your pension:
ERISA

The Employee Retirement Income Security Act (ERISA) of 1974 protects assets in retirement plans from creditors. This includes 401(k)s, which are generally safe from garnishment.

Federal benefits
Creditors cannot garnish federal benefit payments, such as Social Security, Veterans Affairs benefits, or railroad retirement benefits.
Bank accounts

If Social Security or other protected benefits are directly deposited into your account, the bank must protect those funds for two months. However, creditors can still garnish your wages or other assets, depending on your state.

IRAs are more vulnerable to garnishment than 401(k)s. Creditors may also target funds in certain 403(b) plans.

If you’re considering taking money out of your pension to pay off debt, you should speak with a financial planner.

Once the money is paid out, you won’t have it to use in retirement.

[Johelen]

Why is your pension offering a one time lump sum payment – randomly? Are they dissolving?

I would not touch my pension.

[Tiffany]

Neither. Check out Dave Ramsey’s baby steps and work yourself out of debt.

[Darla]

You really need to speak with someone who can guide you and understands your ENTIRE financial situation.

Please seek a professional opinion which can save you thousands of dollars.

[Nicole]

You can settle for less with discover. They will give you a payment option or even the law firm who buys your debit.

[Sally]

Do not touch your pension. Do you know how much it’s going to cost you to take your pension? You will get maybe 50 cents on the dollar after taxes and fees

[Amy]

Talk to an attorney. They will roll their cost into the bankruptcy amount

[Rachael]

Go see an attorney. They will let you make payments. They will start representing you with the first payment.

They will petition the court and get it pushed back to give you some time.

[Laurie]

You can file bankruptcy and make payments. I have a friend who had to file because of a horrible situation with her house, happened.

She maxed out her cards and she is making payments on her bankruptcy.

[Viv]

1) talk to a bankruptcy attorney first. 2) call Discover and talk with them. If they will drop the lawsuit agree to a small payment plan.

[Elaine]

Bankruptcy lawyer consult is usually free. They only charge if you actually file. Your pension should be protected. Don’t take the lump sum from upur pension.

It is worth more than they are offering you, otherwise they wouldn’t offer a payout.

And Discover can sue you, but they can’t get what you don’t have.

You sound like you have given up. Check with Consumer Credit Counseling.

They are free and can look at your situation and tell you if bankruptcy is worth it.

[Hope]

If you are going to file bankruptcy anyway, don’t pay it off and just let it go into the bankruptcy.

Make sure you file before the hearing and they can’t go forward with the hearing.

[Kathy]

Discover card filed against me ($7000 something) I didn’t show up at court. Supposedly, they got a judgement against me.

I don’t own anything so they can’t get anything. My only income is my social security

[Carolyn]

Try to see a financial planner, they will give you the best advice on how to save your pension and give you advice on how to clear your debt without filing bankruptcy.

After 90 days of no payment on a credit card it’s automatically turned over to collection agencies.

If they continue to threaten or harassing you, send them a registered cease and desist letter.

They won’t be allowed to call your employer, family, neighbors or friends after you send a letter.

Read up on the federal law that protects consumers. Times are hard don’t feel like there’s no light at the end of the tunnel. There’s always options.

[Author]

Posts