serious chapter 13 vs debt negotiation?

I used a debt settlement company instead of bankruptcy and i too had more going out than comming in and i wanted to avoid bankruptcy but wanted to get out fast. Now you can do this on your own settle these accounts and there are great posts on this site on how to do so, your you could go through a company as i did. This choice is up to you in what you feel comfortable with. All will effect your credit no matter what you do. So you must do you research as to what you think the best way to go these are options:

debt settlement on your own: stop making payments to them and start saving up. this will be about 3-6 months till you will be able to get some good offers you will be handling all negotiations yourself. This is the cheapest route, and will save you bundles you pay nobody anything except for the companiy you owe money to.
debt settlement with a company: pass it all over to them and your money (they will put it into a account for you so they can have access to settling with the companies). This will cost you more than doing it yourself because they get a % or fee for each settled account usually debt settlements take18 months-3 years depending on the plan you choose. You will not have to deal with the companies at all they do it for you.(you will recieve a few random calls now and then though, you will just refer them to the company and say nothing)
you will be held accountable to send x amount of dollars to this account every month so it grows. in the end whatever is left goes back to you its just a savings account.

consilidation or management: Pretty much a consolidation loan only they work with cc companies to lower % and fees. This is a good route but takes longer than debt settlement.5 years or so depending on the debt.

bankruptcy which you know about.

My opinion would be some type of debt settlement would be best for you due to all the credit card debt, but this is a personal decision. research all types of programs narrow it down to what you feel comfortable with. After that then research companies if you choose to use a company. Remember there are alot of bad people out there taking advantage of people in need right now so be sure you know you are going with a good company! And good luck i hope this helps

I agree that settlement is the way to go, however it is best to hire a professional co to settle the debts for , one that uses attorneys not clerks. I tried to settle my own debts (over 100k) and did recieve offer but nothing like i got after I hired a settlement firm with good lawyers.
I can highly recommend Freestar financial. I wasable to deal with the owners directly which was very comforting to me.
john

Debt settlement is a good option as bankruptcy damages your credit badly for years. I took help of Freedom Debt Relief to get rid of my debts, their financial advisors helped me in reducing my debt levels.

personally as i posted above, i used a company and recommend it, but when i recommend it too much the moderators get very angry so i try not to suggest it any longer. I just show them the choice and it is thier decision to make. I prefered the company because it did not seem to be as stressful, and they know more about settlement than i do what is a good offer and what is not, this is what they do everyday. I think i made a comment earlier about fixing my toilet. Im not comfortable reading a book and fixing my toilet. I call someone who knows how to do it and do it well because they do it everyday. (just my opinion, everyone is intitled to one!)

sorry that was my post above, I thought i was logged in i guess i wasnt!

Hi whichway,

$4 to $5 thousand upfront?! You went to the wrong attorney. Find another one.

Better yet, see the Federal Courts page on Chapter 13. You do not need an attorney to file bankruptcy, that page can teach you how to in detail, and it has all the necessary forms you will need. The filing fee to the court is only $274. It may be exasperating, but saving thousands in fees should make up for the work, like getting paid to make your life better! But, you will need to go under a government approved credit counseling program for 6 months first (see the US Trustee's site for approved agencies).

Good luck, and keep us updated!

chrys