I am debating whether to solve my debt problems by filing for bankcuptcy vs. debt settlement.
Can you folks share your experiences with me? Pros and cons would be helpful.
This is hard to answer not knowing what steps you have taken to date. how much debt.? what is your long term goal….. If I had a choice I would do debt settlement. But way before I go through that route I would make sure I have exhausted every possible avenue to take care it yourself.
tough desicion, first question I would ask is what state do you live in, that makes a difference. The difference being: what can your creditors do to you, can they easily pursuing you non-payment.
Next how much debt do you have, what kinds: credit cards, loans on cars, boats, other toys, taxes, student loans, mortgage.
Finally: where would the money come from for debt settlement: that one is important. Because if you chose to file bankruptcy they would ask you the same question. If you ahve the ability to get money to pay your debts, you cant file bankruptcy in most cases. If you will give me some more information I can help you. I was a professional debt collector for 15 years and dealt with the largest banks in the country. I can offer more suggestions for solution, but I need to know other details. let me know.
I’m also in a similar situation. I have about 100k in unsecured debt and defaulted on my 4 largest creditors. I’ve made arrangements to pay in full over time my smaller creditors which I hope I will be able to do. I do not want a chapter 13 plan and believe I can pass the means test for Chapter 7. However I am currently negotiating with collection agencies for 3 of them and waiting to hear from the 4th. I live in New York and am current on all secured debt(mortgages,HELOT and car loan). I do not have enough income to pay my debts in full and don’t want to use exempt assets to pay the unsecured debt. Any ideas for those of us in these situations would be welcome.
With the debt load you have, you should be discussing settlements with the collection agencies. but dont do it through a debt settlement comp. that can cause you bigger problems.