Debt settlement vs. Ch 13?
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| Sat, 05-08-2010 - 1:37pm |
Hi everyone! I've been MIA lately- a lot going on, and for now things seem somewhat under control. It looks like we will be coming into a situation which will quite literally bankrupt us. I have been exploring different options to get us through, and am looking for some advice on what might work, what we should avoid, and what we might be able to do ourselves.
What are the ramifications of debt settlement vs. ch. 13 on your credit report? Which will look better, and keep us in a better position for credit should we need it?
If we try to settle our debt, is it better to go through a company, or do it ourselves? From what I understand about settlement, it is basically not paying your CCs for a few months, then negotiating a lower balance and payment you can afford. I have heard of people doing this themselves- is it worth it, or better to have the professional/legal advice that comes with using a company?
Any btdt advice is greatly appreciated!!







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~Jodi
Interesting.
I'm pretty new to this board and I don't post a lot, but the previous poster's comment seemed rude and judgmental to me.
Interesting again.
I'm very sorry you are finding yourself in this situation. I'm not very familiar with debt settlement or chapter 13 but the Debt Q&A board has some wonderful advice and they may be able to answer your questions.
From what I know about debt settlement I belive that in order to accept the settlement then you have to pay that amount all at once. Have you talked to your creditors about whether or not they are willing to work with this option and what you would have to do for it to work? We have settled one debt in the past. It was a medical bill and our credit report showed the debt as "paid in settlement
OK, I'll bite. I ignored your first post, which yes, was rude and judgemental. How is it "honorable" to judge someone you don't even know who is asking for help? You have no idea what my situation is, or how I got to this point, or how incredibly difficult it was for me to gather enough courage to even admit I need the help, much less to ask for it. I feel horrible enough about being in this situation without someone like you coming in and casting judgement. I am a good person, and have been working hard my entire adult life, with every intention of meeting my obligations. Sometimes life throws things at you that you were not prepared for, and you find yourself literally screwed. We have a lot of debt. Our fault? Absolutely. Trying to pay our way through college, and still needing to take loans and live off the credit cards just to make ends meet, we were behind before we even got started. But, were we managing to pay it off the "honorable" way? Yes, by cutting out all the "extras" in life, and both DH and I working two jobs. We have cut our CC obligations by over half over the past 5 years. Well, now we won't be able to anymore. We are expecting our third child. DH just took a huge paycut for his FT job, lost his PT job, and we need to relocate for his FT job. I will be out of both my jobs due to the relocation. We have no friends or family there, there are no jobs in my line of work down there, and the only job openings are for minimum wage. Well, that doesn't even cover the costs of daycare for three children, so it would actually COST money for me to work. You tell me how to pay $4000 a month in credit card bills on a $2600 a month income. We have to sell our house, which we just bought 2 years ago, and with
I'm beginning to understand.
I am glad to see someone not sugar-coating things.
Support does not mean ignoring what is right or wrong. What if I come here and say I have so much debt that I am stealing from liquor stores to satisfy my expensive drinking habit? Would people here "support" me? Oh, and BTW, drinking is not a "bad habit", it is a "disorder" and I should not be judged because of an "illness" ...
amen. i have read this board for about a month now and one of the things i really liked about it is all of the people are very positive, loving, and supportive. this poor lady has been through a lot and by her last post she obviously tried everything she could.
join,
i am so sorry all of those things have happened to you. it must be very stressful and draining. just remember there is always light at the end of the tunnel.
if you file a 13 you will still be required to repay your debt on a court ordered repayment plan set by a judge if you qualify.
if you do consumer credit counseling you may be able to reduce your rates and have fees waived or settle for a portion of the debt. i was forced once when i was very young to use a cccs and i had to repay every dime of my debt. my interest rates were lowered, but they were able to waive all the over-the-limit and late fees. i made one large monthly payment to the cccs and they paid all of my debts for me. i made the payment a month in advance so they made sure my bills were paid on time as well. it got paid off much faster and was far less stressful for me. though i did not have quite the amount of debt you do so i am not sure it would work for you though i'm sure it wouldn't hurt to call and ask.
my prayers are with you.
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