Lots of Debt!

You have already taken the best first step and that is relizing you need to do something soon. Are you palnning to settle these debts on your own? If so I would review your report and make sure you are not going to be making payments on any defaulted debt that is past the Statute of limitations. You are protected from paying that type of debt. Your main worry needs to be the creditors and collectors who are within the SOL. Try calling them and asking what settlement offer thay can give your to resolve the debt. Let them think you may be looking at bankruptsy if you can not resolve your debt issues,even if you are not. This will help get them to settle the debt and still get some type of payment. If they think you are going to file for bankrupt then they would believe they would not be getting any money.

are you just late, or have you stopped paying completely? if you are still paying stop now. then usually after you are around 2 months of non payment then start making calls and follow the instuctions above. Think of a hardship story to explain how this has happend to you and if they dont settle you will have no choice but to file. good luck with you! and let us know

Honestly - I am right on the cusp of a Chapter 13 Bankruptcy. I am doing all I can to avoid that. In doing so, I've already taken a hard look at my existing spending and put some controls on that. My budget is getting tied down tight so that any and all excess cash will be direct deposited in my settlement account. I truly want to avoid the bankruptcy, but if these creditors aren't willing to settle for (what I feel are) reasonable terms, I might just press on. I've got debts with CITI, WAMU, DISCOVER, CAP ONE. Should I go after the largest one first? What is the best way to initiate a settlement offer. I want to obviously settle for the least amount possible. Any and all information is greatly appreciated!

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If you are already committed to a CH 13 bankruptcy you should consult with your attorney before doing anything. A lot of bankruptcy attorneys also offer settlement so you should speak with him and see what option is best.

I haven't paid any of them in a very long time. I have been sued - and there are judgements against me currently. I was sending in a meager $25 per month to Citi per a verbal agreement with their representative at a "hearing." I stopped doing that per my BK attorney when I started the process with him. What scares me is 5yrs of a Chapter 13, someone always watching what I'm doing, what I'm making, where I'm living, etc. I would like to tackle these ASAP as it could very well affect my job since I need special clearances. Ugh....it's not easy. Stress and anxiety filled days...I wish I could just win some cash or take my salary in lump sum and pay it all off....well, settle it!

in all honesty no matter what choice you make at this point is and will effect your credit for awhile. Im a firm believer in settlement but sometimes it is just better to throw in the towel and do a bk. but i would talk to your bk attorney and see what they say may be your best option.

The BK Attorney will always for the most part say that the BK is the best offer....for obvious reasons - they're making money off of it. The Chapter 13 would be much more affordable, but could very well drag on for 5yrs. Whereas, if I settle one by one, it's at my pace. Sure I pay more in the long run, but the BK won't be on my credit. And for all intensive purposes, I could be out of debt in under 2yrs if I truly buckle down and start attacking it.

I just want some opinions/input from people who have attempted to settle on their own without the help of a settlement company. What steps should I take? How often should I communicate my intentions? What should my first offer be? Pertcentage-wise, that is....

I'd suggest you try a debt calculator before jumping into anything. One thing it will show you is how much you'll pay in different scenarios, comparing credit counseling, bankruptcy and debt settlement. What it doesn't show is how long each will affect your credit. BK will stay on your credit for seven years AFTER you have paid your debtors, and the payment process can take up to five years! That's 12 years of black marks on your credit.

There are examples of people who have done debt settlement and come out with a better score than they had before, 18 months after completing their program. Which looks better to you? Here's where I found the example: ezinearticles.com/?Debt-Settlement---Doesnt-it-Hurt-Your-Credit-Score Look for author Jesse Niesen, he has several articles online about debt settlement that will clear up the confusion for you.

Oh, you can find a debt calculator that shows differences in what you will pay in the Debt Relief Guide Online, Day one. Opt in and it will be sent to you, then you can see what the difference would be.

Just curious. I heard that you can "buy" your way out of a Chapter 13 Bankruptcy? How long will you have to be in the Chapter 13 payment plan before you can do this? Also - has anyone had any experience with it? I'm curious about that.... What is the soonest you can buy your way out? The reason I ask is that I have a good chance of coming into some money in about 6 months... So many questions, everything is so confusing. I wish it were simple. Damn credit cards - they were so fun when I was younger!

Bump to see if anyone knows about this.