Just starting this journey, do'nt know which way to go?

Hi,

I saw your post and wanted to suggest you not to opt for bankruptcy so soon. I am sure you have your checklist ready with all your expenses and if you do not have then start preparing one. It will help you to identify unwanted expenses and increase your savings.

I would suggest you to try for self negotiation with the creditors. You need some basic tricks to convince your creditors to lower your interest payments.

Check for DMP programs with your creditors. This will put you in a stringent monthly payment plan which will set aside some payment for creditor pay off. It may take like 5-7 years to pay off your debt. You may end up paying more towards interest. Or you can opt for DSP program and pay partial of the debt amount. However this process will negatively affect your credit score but you can expect to become debt free in 3-4 years depending on your monthly payment towards the program.

In case it doesn't work out then you can look for professional help in your state. Professional help will be a costly venture to some extent and finding genuine one will require some research.

PM me if you need any assistance.

Thanks
Profitresidual

"I Say Life.............Try Me!!!"

Actually BK is not a bad idea if you can do a Chapter 7. You are over the means test with your incomes but with 4 kids, you should qualify. If your credit is already in trouble, a Chapter 7 will help you wipe the slate clean and start fresh. You should talk to a local BK attorney and they can tell you if you qualify for CH 7. Stay away from CH 13.

There are other ways to solve your debt issues as mentioned above. Check out my blog for a detailed list. If you are already behind then you can negotiate a lower rate or a settlement all together. There are many ways to go. You should do lots of research and decide what is best for you.

Also, tax debt can be erased with BK but student loans cannot.

el suavo

Why do you say to stat away from Ch 13? It sounds as though the OP needs to get thier finances in order and at this point thier credit is already dinged and bruised. I realize that the Ch 7 would eliminate the debt, but at least with the 13 they could work towards getting thier heads above water.

A Chapter 13 is a forced payment plan. If you are above the means test then a 5 year plan is required. You could be looking at a 100% repayment plan. So, you will have a BK on your credit report AND have a minimum payment you must pay every month for 5 years. It is the worst of both worlds. Your credit will not begin to improve until all your debts are discharged which is at the end of the 5 year mark. Also a Chapter 13 BK will stay on your credit report for 7 years so you are looking at 12 years of this hanging over your head.

Also, the court will decide how much you can pay per month. They will scrutinize every penny. Now with 4 kids you will have many deductions but believe me, what the court says you can pay will be a lot more than you think you can pay. Every penny of disposable income will go to the trustee. Say goodbye to vacations, dining out or any fun. With 4 kids that could be a real burden.

I agree with el suavo. A chapter 13 is the worst of both worlds. You would have to pay your creditors back with a chapter 13. If you can do a chapter 7 Bankruptcy that would be far better.

I would look into debt settlement too and then make up your mind, which is best for you. We do a free anlyisis if you would like our input on wether debt settlement is a good option for you. With debt settlement you will be able to reduce your debts up to 60%. So, considering that, it might be better for you then bankruptcy, which will stay on your credit report for 10 years.

Certified Financial Solutions
www.certifiedfinancialsolutions.com

Thanks. I have not had that explained to me in that fashion

i agree, about 15 years ago, i had family who qualified for chapter 7 but went with 13 because that they thought it was the right thing to do. it is one of their biggest regrets, they paid back nearly everything and had the worst credit for many, many, many years.. it destroyed their credit real bad and nobody cared that they paid so much back.

I am sorry to hear about your family. That is why I can't overstate that education is your best friend. Don't settle with anyone untill you get answers to all your questions. Always here to help.
Certified Financial Solutions

well, they are doing great now - this was a good 15 years ago but now their credit is perfect! they get the best rates and always get approved.
i wish i were so lucky.

hi like you im trying to reduce my debt load. as i find articles on the web i index them on my blog since i share them with some of my friends. see if it any of the articles can help out.

my blog is at
http://say-no-to-debt.blogspot.com/