Bankruptcy vs Debt Settlment

Hello Friends,

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.

Help with some information please

I have received some letters from an attorney in Fresno, CA. They are threatening judgment on me, etc. They represent an outfit called Unifund CCR Partners. I’ve never done any business with either the attorneys OR Unifund. My attorney has called the Fresno attorneys who will not state if Unifund is a “cover” for Citibank, Mastercard, or whomever.

Any thoughts or ideas for help? Thanks all very much.

Send them a debt validation letter. Check and see if the letter you received from them mentions debt validation rights. If it doesn’t then they could be in violation of the fair debt collection practices act and you can sue them in your local court for at least $1000. If your attorney does not know how to go about demanding proof of the debt, get a new attorney. You have the legal right under the Federal Law to have proof that you owe the debt, meaning copies of the original bills.

I don’t really know what to tell you but I can tell you that both my husband and myself have at one point or another have been on the receiving end of this and truly these “attorneys” turned out to be a bit unscrupulous, unethical and downright slimy to say the least. Try not to let them fluster you first off. That’s their game. They come at you hard and with alot of threats. In one case my DH had an attorney harass him at work and threaten all sorts of things.

This was a few years back and we were’nt as knowledged as we are now about the FDCA etc. This attorney managed to scare my DH into paying on a debt that the statute of limitations expired on for one. They violated the FDCA regulations right and left but we did’nt know it at the time. If you have an attorney working for you already I would’nt worry. Let him direct you on what to do. Have Googled this Unifund? With the internet you should be able to do some research on them and get some answers. Sorry I’m no help but I hope you get it worked out. I did Google the company and found that apparently this Unifund/CCR buys old debts and then makes a stink with everyone. I’m not going to get flustered (I hope LOL) as I’ve been through a bunch of this stuff already.