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I'm a small homebuilder and have finally sold a spec house I've been carrying for over a year. It's selling for less than I have in it, and since I earn my income from home sales, I have no income to show for the last two years. I'm basically unemployed and my wife brings home about 4000 a month. We have about 75 thousand in credit card debt, 160 thousand in commercial loans, and our home equity loan is maxed out at 250 thousand. I will receive approximately 150 thousand at the sale. The bank will take a minimum of 100 thousand to freeze my equity line and drop my interest payments on the commercial loans for a year, so I have app 50 thousand to put toward my CC debt, but that won't be enough since we still won't be able to make the payments on everything. Once this money is gone I won't have any way to get any large amounts. We've got a very good credit rating now, but it's been financed through our home equity, and everything's going to fall apart quickly. We're not going to able to keep up, but I'd sure like to keep the CC companies off our backs so we can work with just the bank. Will I be eligible for debt settlement for the CC debt when I get the 50 thousand or do I have to wait until everything falls apart?

Thanks,
Roland

Posted: Thu Nov 22, 2007 8:53 pm Subject:

divperez, Welocme to the fourm. Someone should be along soon who can help answer your questions and guide you in the right direction. Keep chceking back for a post.

Posted: Fri Nov 23, 2007 5:28 am Subject:

You are in deep and I would recommend a consult with a Bankruptcy lawyer.I normally don't advise a BK,but with your debt load I think it would make a lot of sense to check into this option.

Posted: Fri Dec 21, 2007 4:03 pm Subject:

I tend to agree Cajun.... Creditors aren't usually willing to settle accounts that are current and in good standing. It is only when you fall way behind that they are more cooperative, and by then your credit score had taken a beating, your interest rates jacked up, interest and fees accrued, etc. So the debt ends up being even bigger than when you stopped paying.