Debt Settlement or Chapter 13

I'm settling my own debt with my creditors because I don't want to wait 3-5 years for this to be over and I don't want the public record for 7 years. I also am able to borrow against my retirement to settle my debt. If someone does not have any assets or loans to tap into - this may not be the right approach for you and BK 13 might work better. I think that debt settlement companies cannot do anything I can't do myself.

You both have very valid points, and there really isn't a right or wrong answer, it's just the one that works best for you. The thing to remember, is that they are both looked at pretty much the same...meaning that if you go into debt settlement, or CCCS, they consider it a form of bankruptcy and require you to jump theu many of the same hoops to get back on track.

Guest, you are fortunate that you had your retirement fund to draw on...and quite frankly, that MAY have prevented you from using any bankruptcy as an option. And in my opinion, I feel that is correct, because if you can afford to pay back your debt...it is the right thing to do.

However, if you cannot, then that is why there are the bankruptcy options. They have tightened up the guidelines for filing bankruptcy, and they made it more difficult to claim chapter 7.

I decided to go debt settlement as well. I believed I would be able to settle the debts myself, I do agree alot of debt settlement companies seem to be scams and don't really do much for you besides take more of your money. There are so companies though that are actually good to use if you want to use a company. I am not, I have settled two credit cards so far, and have two more to go. I am saving up some funds, but having some sort of action or timeline to get the funds does reduce your risk of being sued. I hope to have my last two settled by the end of this year, really hope sooner. This would be then a total of 1 1/2 yrs verus 3 - 5 and I should be able to start rebuilding my credit as soon as I settle the last card.