Need advice

I have a ton of experience in the settlement industry.Typically the account will have to be at least 90-120 days delinquent. Also make sure if you do work out some sort of settlement arrangement that you make sure they send you something in writing agreeing to these terms. If it ain't in writing it ain't a deal.

based on what i'm reading here, i'm inclined to go through the hell of waiting the 120 days of constant calls and sit on my cash, then settle with some, and keep paying others in full, so i come out of this mess with some good paid accounts. i would like to keep a couple of cards for emergencies. i was leaning to go BK, but i'm afraid to lose property in the process.

Well here is an issue with that. All of your creditors will run credit reports and when they see that you are paying some and not paying others that is not going to fly with them. Its kind hard to convince them you are having a hardship when you are paying your others cards but can`t pay them. If you are going to go with settlement all the accounts will need to go past due. If not it could tick that creditor off and they will either not settle or will sue you.

I finally agree with Mobile.....There is a very good chance none of your creditors will settle because you are paying another in full. Look at it from their prospective....if they can afford to pay them why can't they pay me.....
I too am 100k in debt and am 60-90 past due now....all the major credit cards are giving me 90-120 days to work on my personal situation. I am very upfront with them from the very beginning. I can prove my present situation and will be glad to show every creditor that I am in a legitimate hardship (business closed.) The most annoying creditor is Advanta who I owe a whopping 3k....they call 9-12 times a day.

I understand your point. As explained earlier, our credit is split 66% my wife, 33% me. her accounts are her name ONLY. Mine are in my name ONLY. the mortgage and cars are in my name. we have been married 25 years and plan to stay that way. I'm inclined to stop paying all her cards, and settle with them. i will keep paying all mine and pay some off. It will destroy her credit, but I make all the money. I don't know if the creditors can pull my report because we default on her accounts.and I am not co-signed on them I am trying to save something out of the mess. My only other would be BK. I have 50K-60K to spread amongst the following :

Citibank
Wells fargo
WaMu
B of A

I have read on here that there are pretty big penalties when you cash out a 401K and there are some major tax penalties ...

yes, but i'll take the hit. my plan was to do it early 2009. taxes would not be due untill 2010. by then hopefully i'll be in better shape. i am not in as dire shape as some here. i have 30 years with the same company, and 10-13 years untill retirement. however i did make some bad decisions, and have been juggling for some time. time is up and the chickens are coming to roost.

Don't cash any IRA thats crazy!!!its an unsecured loan!!! they took a chance with you and they lost. I'm sure you paid the actual chrges back already with the min. payments and interest. Let it ride deal with the calls and in 90 days settle for .20 cents on the dollar. Do not send a nickel till you have a deal in writing. I have done several like this. they will settle almost imediatlly. Wells Fargo and B o A took 20% at the 2 or 3rd time we talked.
Remember forgivness of debt is considered income to the IRS so the CC co. will send a 1099 to you.

well not really. I have been playing the balance transfer at 0 interest game for 2 years.so i have not really paid much of any interest.well times up. all i have left is 60K in my 401K i know i'll take a tax hit,but so be it, i still have a defined pension plan.

you mentiones wells fargoand B o a. anyone have experience with citi ?? Also WAMU went BK today and chase took them over. not sure who will get their CC business.

Do not cash in retirment!!! I think thats even judgement proof and excempt from bankrupcy. Don't do it!!! If you feel its the wrong thing to do then talk with them and they will give you 0% interest till you get paid up. Problem is if you miss one payment it starts all over again. I doubt in all the transfers you haven't paid something along the way.

Citi bank is a tough one. They have many different affiliaits. One citi card I was able to get 40% the other wants 100% they have filled papers should have a court date soon. The other is still talking and we are trying to get to an agreement.
Don't cash in the IRA they can't make you cash it in even with a judgment.
BoA $53K setteled $8,000 thats like 15%
Chase was a little harder $7k setteled for $2500 35%
All with payment plans.
Don't give them your hard earned money you will need latter in life. Would they give it to you? I think not!!!