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.

Thanks.

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.

Is debt consolidation loan a good idea?

Hi all,

Well, my post from yesterday is still not on here, but neither are any other new posts??? My questions from that other message still apply, but I also have a new one and I hope that it gets posted and answered soon since the bank will close in a few hours! So, here goes!

Ok, so yesterday I called USAA, one of our banks, and spoke to the financial advice center there. The only thing that the girl said that I didn’t already know was to look into a debt consolidation loan. Well, I knew about them, I just didn’t think that we could get approved.

Will that bank, we can’t. But, Navy Federal I think has approved us. It should have the final stamp of approval today. It would be for 25K and would pay off the credit cards and our home equity loan. The only reason I want to pay off the equity loan is that I think then maybe we can actually sell the house because we could drop the price 10K- we could downsize. The payment on this loan is about 600 a month- which is about 100 more than our current min. payments on everything now. We aren’t able to pay all the bills for the first time ever as of this month. Right now, nothing is more than 14-21 days late, so it has not been reported yet.If we get this loan, I could make the payments before they are reported and the first payment would not be due until the end of Oct. I am going to ask if they can move that to Nov to buy us a bit more time, but I don’t know if they can. We are planning on having our in home daycare open by then, or maybe hubby will be in a great paying job in Afghanistan. but if those things don’t happen we will still be unable to make all our bills.

So here is the question. Should we do it since we would actually have a payoff date for everything this way and actually be making progress with the bills/ credit cards since they would all be combined in to one? I also thought that maybe it would be easier to work with one bank where we have a great history if we can’t make a full payment on just one loan than it is to try to work with all these different creditors. If we end up still having to file BK (and I am hoping that maybe this can prevent it) I don’t think it will matter if we have just hat loan vs having a bunch of different debts?

Let me know your thoughts and experiences pls…. This is all so new to me and it seems like a last chance!

M wife and I learned (as many others we later found out) why Dave Ramsey (website) calls them debt CON-solidaton loans. If you have not changed your habits, in 2-3 years, you will have racked up the cc’s again and, oh by the way, still have the CON loan to pay. Now you are doubly in debt. If, you will cut-up all cc’s, close the accounts and never, ever, borrow again, then a Consolidation loan may be a good venture. But, be warned. There are many people on this board who have wound up like us.

Our loan would save us about 225 a month vs not getting it and paying just our min payments. See, it would allow us to pay off enough of one vehicle (which we never use but have to keep fully insured as it is financed and have not been able to sell in 9 months) so that we can sell it. Just selling it and not having that payment and insurance would save us the amount of the monthly payment on the new loan. We had great experience with payday loans company called TnbLoans, and now we are looking for a similar provider offering debt consolidation loans. And, it would pay off all but one CC and would take a chunk off of that, thus lowering the min payment for that one. Plus, it is easier to work with one bill than a bunch of different creditors, rights?

Any other thoughts?

ya…I’ve been there and told myself this same story but 4 years later I am eagerly anticipating paying off this consolidations debt. It just never is as good as it sounds no matter how hard you try to spin it..trust me. Or dont, then talk to me in a few years. We paid off a vehicle, and now it sits in our driveway not running- two years into the consolidation debt the vehicle decided to have problems.. see where I’m going with this?. We paid off other stuff.

But what happens is you accumulate other stuff too in the process. The truth is, if you are willing to take on debt then you dont have your finances under control. This is just what I’ve learned. Once you finally make the connection that you dont need credit cards, refinancing, consolidation, etc. That’s when you finally become free from debt. Yes you still have to pay back what you already owe or file BK, but the realization alone is worth its weight in Gold. No one can make you realize it. You have to come to this on your own. I know I can talk until I’m blue in the face but there will come a day when you realize what I’m saying.

Yes, but in some places you just have to have a vehicle. If you don’t , you just can’t get to work. No work no money. Getting to work and getting that money coming in is the most important thing. Is not a luxury