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settlement or BK...

Date: Thu, 07/16/2009 - 17:39

Submitted by hnllvs
on Thu, 07/16/2009 - 17:39

Posts: Credits: [Donate]

Total Replies: 4


If one is 'planning' on going chap 7 bk next july (2010)(live in arizona and need 2 yrs residence) does it make any sense to "settle" with cc companies you are in debt to? Owe approx. 125k with BA, WF, FIA, Advanta, Chase, etc. Am approx. 3-4 months behind now on most. FIA will settle 15K for 3600,,,,but If i am unable to pay off the remaining cc,,,,,why settle with one or two? Also,,,what are the odds of "stalling" this out until july 2010 w/o judgements or liens on house?
Also,,,,,I understand a collector can get money out of a BANK account with court decison,,,,but what about an account with a brokerage that only holds stocks ?


If you are planning to file bankruptcy, I think that instead of settling the debt, you should file bankruptcy. However, there are chances that in the meanwhile the creditors might sue you for the debt and bring judgment against you. If this is the case and your Chapter 7 bankruptcy gets discharged, you will not be required to pay the judgment money.


lrhall41

Submitted by SC on Fri, 07/17/2009 - 23:12

( Posts: 3937 | Credits: )


Yes, I agree. You should really talk to a local bankruptcy attorney. I do not know how it works in your state, but where I live you can file under the state you just moved from. I moved to MD from IL last year, so I was told that I would have to file under Illinois' bankruptcy laws. An experienced attorney can answer your questions, and yes many offer a free consultation.


lrhall41

Submitted by el_suavo on Sun, 07/19/2009 - 07:00

( Posts: 103 | Credits: )