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Losing house, is it better to settle cc debt before or after

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Currently going through short sale process. The house is worth $300K less than is owed. Also have $50K in CC debt.

Would it be better to try to settle debt before the short sale is completed, or after?

I am 3 mos. behind on house payments but current on cc payments.

thank you for your help.

I don't think the foreclosure would really affect settling the credit cards. I also don't think the CC's will take any settlements if you are current on them. I don't normally advocate bankruptcy but if I took a 300k hit on a house I certainly would consider it. If you bankrupt the 300k then you might as well lump all your other debt in there including the CC's. Another option is try to get the bank to forgive the 300k to get it out of your name and pay down the CC's or default and settle the CC's.

Sub: #1 posted on Thu, 09/11/2008 - 10:22

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