debt settlement vs bankruptcy
Date: Sat, 10/02/2010 - 11:23
You can not default or file for bankruptcy on the $33,000 becaus
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.
I was faced with the same situation and decision, but 3 times th
I was faced with the same situation and decision, but 3 times the debtload. I settled $150k in cc myself in 9 months from date of first late payment at about 30%. Then I settled my HELOC for 20% AND kept my home. Good luck to you.
Hello Cacci, To answer that question would require a lot more i
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.
Debt settlement company's that u can trust!
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. |