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debt settlement vs bankruptcy

Date: Sat, 10/02/2010 - 11:23

Submitted by cacci24
on Sat, 10/02/2010 - 11:23

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Total Replies: 4


My fiance and I are in debt with credit cards $54,000 and an equity line of credit on our home for $33,000. We've never been late even once on a payment. He had to have surgery on his foot, and didn't work for 9-months so it really destroyed us financially. Would we be considered for debt settlement or should we just go bankrupt.


You can not default or file for bankruptcy on the $33,000 because it is secured by your home. You would lose your home if you tried to bankrupt that debt. Many other factors play in to the decision to file bankruptcy on the other $54,000 that was not included in the post. I would consider settlement before filing. I think it is a better solution until creditors sue. If you are sued and they win multiple judgments then I would consider BK. I am a proponent of the Do It Yourself method. I see so many debt settlement companies that rip you off or do a very poor job. You should conduct in depth research on any company you consider using if you decide to use one.


lrhall41

Submitted by DOLLARSandSINCE on Mon, 10/04/2010 - 13:48

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Hello Cacci,

To answer that question would require a lot more information. My concern is your cash flow and whether or not you could raise the appropriate amount of money to settle the debt. Actually in a chapter 13, you may be able to do a cram down on the second if you are underwater on the home. Depending on your income and expenses a chapter 13 might cost you less per month than what you would need to raise to settle the debt.

So the only way to answer your question is to get a lot more details on your current cash flow, projected future cash flow, additional financial resources, and financial goals.


lrhall41

Submitted by Damon on Tue, 10/05/2010 - 12:32

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Quote:

Originally Posted by cacci24
My fiance and I are in debt with credit cards $54,000 and an equity line of credit on our home for $33,000. We've never been late even once on a payment. He had to have surgery on his foot, and didn't work for 9-months so it really destroyed us financially. Would we be considered for debt settlement or should we just go bankrupt.
Hey everyone just wanted to share my story about this settlement company that saved me from a financial burden that I thought would never go away. I was currently in debt 50,000 grand and I stumbled upon this company that was BBB, USOBA and TASC certified look it up if you do not know what these stand for but every debt settlement company should be certified by these company???s . I applied on-line to settle my debts and within minutes I had filled out all the settlement forms and submitted them right on there website. When filling out the form, it will ask you how much debt do you want to settle and how quick do you want it paid off, it will then tell you what you will pay monthly ,what you will be saving and what your settlement will be, I only paid 40 cents for every dollar that I was in debt. I received a call stating that I had been approved for the program and they then asked me if I had any questions on how the program works. You will also receive a welcome package in the mail if you qualify for the settlement program with all the important docs and information you need, they work with professional negotiators and everyone is given a password and login to keep track of the funds that are drafted from you monthly through the settlement company. What's great is that if you need some of the money in that account for an emergency you can withdraw it whenever you need to there are a lot of company???s that don???t offer this. So if you are looking to settle debt ,try applying for the program there. If you are interested you can go to www.publicdebtsolutions.com and apply for the program, fill out there debt settlement application, submit it online and be on your way to financial freedom. Good Luck!


lrhall41

Submitted by on Wed, 10/06/2010 - 17:35

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