Advice needed

First, you must speak to your settlement company and know when they are going to send the proposals to your creditors. It should be the right time for them to start negotiating since your accounts are already behind by nine months. Have you deposited the money to the new account as asked by your settlement company?

If you want to go for a consolidation program, you can look for another company and get enrolled with them. Be aware the payments in this plan will be higher than settlement and the consolidation company will start negotiating with your creditors for a lower pay off.

Trenity is right-check with the settlement company and find out what their plans are. I have not done settlement but I have heard of this happening to people. Also be aware some places may not work with a consolidation company. Some places do, and some don't. Check out these two options before you decide to file the chapter 13 which will stay on your credit for 10 years. Let us know how it goes and if we can help.

Jakebabe, I hope you're not working with Mezey & Associates. They took me for over $6k and I just filed chapter 13 to stop the judgement and subsequent paycheck and bank account garnishments. I too had over $50k in CC and Line of Credit balances. I'm just waiting for my court date with the trustee to find out what my repayment plan monthly amount will be.

Bankruptcy isn't for everyone in this situation, but it was for me. I hope you make the right decision, and if you are working with Mezey - STOP!!!! They are just stealing your money. I actually closed my bank account to stop their withdrawls, but I probably could have just alerted the bank to deny any additional withdrawls.