Considering Debt Settlement

Hi, I have been reading this forum for the past week or so and it has been helpful. We have talked to an attorney about Bankruptcy. On the very edge of being able to do a Chapter 7. I would really like to avoid a chapter 13.
I am considering debt settlement instead, especially if we have to do a chapter 13. We would need to take a loan from our 401K. I would much rather pay myself back and have some freedom then pay a trustee and have my finances in their control for the next 5 years.
We have about 55K with Chase (3 accts.) and 20K with Citibank (2 accts.). I can probably only get about 21K from the 401K, so would need to get settlements of about 30%. Could also sell a car possibly which would bring another 10K or so, but we would have buy a cheaper car, so couldn't use all of that.
First missed payment was just on June 15.

Thoughts or suggestions? Thanks.

indebt75k,

You are in an enviable position, you have funds to negotiate with, that is winning half the battle. You have something creditors want and that is money, they are very desperate right now, you need to be patient. Finding the perfect Debt Settlement Program will be a key point. </p>
You can very possible settle all your debt for around 25k, that is if the debt is negotiated properly. You have the upper hand and Chase will be easier to settle than Citi, good luck.

Chase is the most easiest to deal with. You need to wait at least 120 days to get 30%. I have settled with Chase three account for 30% after 100 days. I have one is almost 120 days and will call them to settle next week. Like you, I have fund available to settlle, and in advance to negotiate.

You can most likely qualify for a Chapter 7 bankruptcy. See article at relieveyourdebt.com/chapter-7-bankruptcy.html

When you negotiate for a settlement do the cc companies check your assets or income?

Attorneys conduct asset searches, not credit card companies. It has been my experience that collection attorneys may attempt to determine if an unresponsive debtors have garnishable wages. They do not typically conduct full blown asset searches to include property and bank accounts.

Asset protection can be beneficial, however, since attorneys become highly negotiable when they are unable to collect after filing suit and receiving a judgement.

Collection firms have access to low cost skip tracing software which will give a pretty good picture of a debtor.

Collection attorney's have access to more expensive and more thorough skip tracing providers such as West Law. It will certainly include property ownership etc...


Mileage may vary