Is bankruptcy a better option?
I owe around $40k in credit cards and personal loans but I wouldn't qualify for ch 7. But, I was advised by a friend to try to file for bk instead of settlement. So I am just wondering, under what circumstances bankruptcy is preferred over settlement?
In my personally experience, I wish I would have did Bankrupcy b
In my personally experience, I wish I would have did Bankrupcy before trying settlement. I lost my job last year and scared to death about my bills. So I turned to the first thing that came my way was settlement company. Which was a bad mistake, I lost about 3k to them and had to quit cause my creditcards sued me.
From what I have read and my laywer's asst. that Ch 13 you have up to 5 years to pay off your debts with their payment monthly. After that time frame whatever you don't pay off is discharged. Unlike us we quilifted for Ch 7, however since we almost came close to it with only 100 dollars a month net a month. We could have paid that for 5 years and after that He said it would be paid and rest would be discharged but our sitiuation we had like 130k debt.
So your best bet would go to a free consult with a laywer and find out what they say. But keep your options open...but I read somewhere that 75% of settlement plans do not work and it leaves the person in even more debt.
depending on how long its been since your last pymt, you can set
depending on how long its been since your last pymt, you can settle but if its been a long time they will start suing you! also all the money you spent trying to settle is down the drain and your worse off then if you would have just filed. Chpt 7 erases all debt.