Debt restructuring ????????

Does anyone here know someone or went through the process themselves? My neighbour (and good friend) parents are looking at it. Long story short he ran credit cards to 50 G's and remorgaged the house to 200 G's all to. Wait for it. To play the lotteries. Believe it or not. I don't know what the fk the bank was thinking. Their house is maybe worth 150 here. Anyway there's no sense in digging deeper. That's enough fact for the story. Their both 76, very good health from what I can see. There's this company that tells them he can at least reduce the 50 G CC debt down to 10 or 15.

1) Can you really kiss off 80% of one form of debt without someone wanting your blood
2) If he claims he cannot pay the 50 would they not want to see him sell every single thing he own before hand
3) I just don't get how in a resetion time banks are the only one's making a profit if they kiss off not only the interest but some of the principal of his CC debt

The guy selling this service tells them "NO WORRIES" . Ya I highly doubt "NO WORRIES"

IF IT SOUNDS TO GOOD TO BE TRUE ! IT USUALLY IS !
Glen

debt restructuring works... CC companys however cant come after your personal stuff... in my experience they have 2 years (since your last payment) they can go after year... 7 years since your last paymen (even 1 penny resets the timer) and the debt gets written off... now this was for about 5k not 50k... your credit is pooched... but took 3 years before i am accepted again.

http://canada.creditcards.com/credit...-debt-1264.php

just a little info i found.

Quote:

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Originally Posted by topher

debt restructuring works... CC companys however cant come after your personal stuff... in my experience they have 2 years (since your last payment) they can go after year... 7 years since your last paymen (even 1 penny resets the timer) and the debt gets written off... now this was for about 5k not 50k... your credit is pooched... but took 3 years before i am accepted again.

http://canada.creditcards.com/credit...-debt-1264.php

just a little info i found.

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So basically if one just ignores the cc debt for two years they go away?

No. They don't go away. They just can't sue you.

What makes your friend think that restructuring is going to save them?

There are family members of mine who would have been financially ruined for life if it were not for a death that paid off their debts. Well within 5 years they were buried again and essentially lived out their last days on the family, it happens all the time.

If you gamble it all away before you probably will again.

I would love for 80% of my debt to just be forgotten, hmm, mortgage, ya, just pay us 20% and we will be good, ha ha ha.

Just call it infrastructure expenditure and then it will magically disappear or your grandchildren can worry about it for you. Enjoy.

The banks sell the debts to collection agencies for pennies on the dollar if they figure they are not going to get it back. So yes you can get away with paying far less than you owe, but does anyone really want to go through that??

Debt restructuring in the case of the folks the OP describe may be their only hope. But for most folks (who owe $20K or less), it's likely better to just sell off unnecessary assets (atvs, boats, furniture, 5th TV, etc) and budget better.

In almost all cases, someone who has gone through debt restructuring is regarded almost as poorly by lenders as someone who went through bankruptcy.

A decent bookkeeper should be able to point out a few dozen ways to cut costs, eliminate waste and throw hundreds of $$$ per month at the debt.

I would start here...

http://www.debt.ca/solutions/ad/c/1/...4m6RoCZwjw_wcB

There are many agencies in Ontario that will assist with Orderly Payment of Debt and/or credit counselling. By engaging one of these agencies the couple will have someone else negotiating with CC companies and other creditors. It will help reduce the stress but it will not cure the gambling issue...