Finally, recall how (3) that particular firm had gotten a number of my creditors to approved a repayment schedule for me--only to later come back to me and try have CITIBANK raise my monthly payment to them by another 8 to 10 percent after I had sent in 500 plus dollars to obtain their services.
This roll-over to Citibank approach of theirs had created great distrust between that particular credit management company. So, I had gone on-line looking for a firm with more integrity.
In U.S. Credit Management, I felt I had found such a firm.
Moreover, since I was registered living in Killeen, Texas at the time, I felt that having a local [Texas State or regional company] handle my debt management and negotiations with tough-guys like CITIGROUP would be very beneficial in both the short and long terms.
After reviewing an article published at that time on CNN.com about how U.S. Credit Management was working wonders with client's debts, I agreed at the end of January 2004 to put my debt matters into their hands.
How did U.S. Credit Management claim to operate more successfully and differently than other credit management consultants?
Well, U.S. Credit Management simply told Citibank and other lending & credit agencies that the client would go bankrupt if they didn't agree to back off. They would then seek first to pay off the smallest loans at a reduced rate of overall debt. All the while, monthly amounts were deducted from my Texas based IBC Bank. This money would become a war chests of sorts. Every few months U.S. Credit Management would contact the bigger lenders and ask them to accept a lower overall debt and reduction of fees and interest if that creditor would take the lump-sum offer.
I was told by a sweet talking and sweet sounding Texan with a Latina-accent (and a great heart for the unjustly treated poor credit-crunched American) that within 3 � years all my creditors would settle. If not, I still wouldn't be expected to put any more of my money in the kitty every month. It was U.S. Credit Management's contractual agreement to get the big bad creditors to eventually settle. That is why they called themselves credit negotiators.
Now, you may not have believed this sort of tactic to be plausible.
However, over the years, I had come to learn exactly how much lenders and credit management firms were making each year. (Just look at Sallie Mae rolling in the doe back up in Lawrence, Kansas where I once lived and studied!) I felt that the Irving, Texas based U.S. Credit Management could pull this negotiation off and make a profit. All U.S. Credit Management needed to make clear to creditors was that the threat of a my declaring bankruptcy was likely or plausible.
Meanwhile, I was so far in the hole at that time (January 2004) that I had to accept a job to teach in the Middle East.
This move of mine outside continental North America, I felt, should make clear to my creditors that I could or would be ready to go ahead and declare bankruptcy at just about any time.
PRIOR TO SUMMER 2005
Prior to the summer of 2005, it was much easier for debtors across America to declare bankruptcy than it is today.
However, the Republican-led Congress of 2005 passed legislation making it much harder for the average American suffering credit problems to declare bankruptcy and start over again. President Bush quickly signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (S. 256) into law.
This was a hugely mean-spirited act.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
