I have an insurmountable credit card debt, $70,000, recently learned after my wife filed for divorce. The way I see it I have three choices, file Chapter 13, cash in my IRA retirement fund, paying penalties and taxes, or some form of debt conslidation. Outside of the credit card debt I have an existing home mortgage and home equity loan, which I can manage or refinance to join those two accounts. I'm guessing the best thing to do is to cash in my IRA to clear up credit cards and start fresh from there. If my wife plans on moving forward with the divorce the IRA is considered to be a joint account anyway, which would have to be split somewhere down the line anyway. Is there a better solution?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.