Debt Consolidation vs. Chapter 13 Bankruptcy
Just after 9/11 my National Guard Unit was activated and I was forced too close my business and report for active duty in the military. While deployed I was stationed overseas and during this time my wife became very ill. Needless to say our savings vanished and our overall debt is approx. 150,000.00 dollars.
We are currently 2500.00 behind on our mortgage and the bank has called in the note of 54,000.00 however they seem to be willing to work with us in that we become current and place unsecured collatoral (Wifes Hair Salon) to secure their note.
While I was away my income dropped from six figures down too 5 figures and my wife lived off her credit cards which now exceed 20,000.00 dollars and consolidated 16,000.00 dollars to her Discover Card. Both our vehicles are paid in full and we currently dont owe for any furniture or home appliances or electronic equipment.
Presently, I am working as an Adjuster for a Auto Collision Center bringing home 31,200.00 annually which is considerably less than my annual earnings prior to the deployment and my wifes income is approx. 60,000.00 annually.
Also, I was estimate that my wifes medical bills for the last 3 years exceeds 20,000.00. Currently, she has destroyed all of her credit cards and has closed many accounts though they were paid in full they were very past due.
debt consolidation... is it for us? Our attorney advised me today that he felt it would be in our best interest too work out our mortgage with the bank which will stop any forclosure action against us and consider using a Debt Consolidation Service to help us get out of debt. He estimated the cost and/or payment to a Trustee after filing Chapter 13 would be approx. 1800.00 dollars a month. Would the cost be lower going the Debt Consolidation route? If so, what are the approx. cost and how long on average would it take for us to feel some type of relief...
Thankyou,
Doug Hanning Texarkana,
USA 870-779-0201
:) Hi Doug, I have gone through your query. According to
:) Hi Doug,
I have gone through your query.
According to me if you contact any debt consolidation agency and undergo any debt management plan your monthly installment will not be less than $1800 which you will be required to pay if you file for chapter 13 bankruptcy as advised by your local attorney .
So it is up to you to decide what your next step is going to be.
Also you havent mentioned what is the rate of interest that you are currently paying.
All the best
Regards
thirdeye
Hello,
Hello,
I am 40 years old and met with a local attorney today who advised me my best option in resolving my credit woes is not too file for a Chapter 13. Since 1997 I have been a self employed insurance adjuster and my wife has owned and operated a hair salon for 20 years.
Just after 9/11 my National Guard Unit was activated and I was forced too close my business and report for active duty in the military. While deployed I was stationed overseas and during this time my wife became very ill. Needless to say our savings vanished and our overall debt is approx. 150,000.00 dollars.
We are currently 2500.00 behind on our mortgage and the bank has called in the note of 54,000.00 however they seem to be willing to work with us in that we become current and place unsecured collatoral (Wifes Hair Salon) to secure their note.
While I was away my income dropped from six figures down too 5 figures and my wife lived off her credit cards which now exceed 20,000.00 dollars and consolidated 16,000.00 dollars to her Discover Card. Both our vehicles are paid in full and we currently dont owe for any furniture or home appliances or electronic equipment.
Presently, I am working as an Adjuster for a Auto Collision Center bringing home 31,200.00 annually which is considerably less than my annual earnings prior to the deployment and my wifes income is approx. 60,000.00 annually.
Also, I was estimate that my wifes medical bills for the last 3 years exceeds 20,000.00. Currently, she has destroyed all of her credit cards and has closed many accounts though they were paid in full they were very past due.
debt consolidation... is it for us? Our attorney advised me today that he felt it would be in our best interest too work out our mortgage with the bank which will stop any forclosure action against us and consider using a Debt Consolidation Service to help us get out of debt. He estimated the cost and/or payment to a Trustee after filing Chapter 13 would be approx. 1800.00 dollars a month. Would the cost be lower going the Debt Consolidation route? If so, what are the approx. cost and how long on average would it take for us to feel some type of relief...
Thankyou,
Doug Hanning Texarkana,
USA 870-779-0201
I definitely think that you should go with the debt consolidation. I think there is still hope in your situation. Stick with your attorney's advice. Good luck.
give debt settlement a try
As benjaminz6 said, give debt settlement a chance. Sometimes a better payment plan can help well.
Vikas
Evaluate your credit needs, the best you can, for the next three
Evaluate your credit needs, the best you can, for the next three years. Check both debt consolidation and debt negotiation payments. If you can deal with the credit impact of a debt negotiation, that may be the way for you to go. You do have extenuating circumstances. Negotiation, simply because of the shorter-term credit effect, is generally better than bankruptcy of any kind. Has anyone ever asked on a job or credit application if you have filed for debt negotiation? No, but they generally ask about bankruptcy.
Good Luck, and thanks for your service to our country. Glad you returned safely.
Sandy Leon
United Christian Financial
800-537-4970 x 808