Debt Settlement vs Bankruptcy?
I have 45,000 in credit card debt. I have good credit with my
creditors, but sporadic unemployment over the past 2 years has caused
my credit amount to soar. I work as software consultant (looking for a
full-time job), and may have some periods of unemployment in the
future. I'm currently working however, and it looks like I'll be
employed through 2005.
A friend of mine used Homeland Financial Services to do a debt
settlement for 23,000, and had success with it. She didn't own a home
and was delinquent on her account. I've been reading the FTC website,
and it looks like a lot of these companies are scams. Has anyone else
had success with them? I'm considering Chapter 13. 20,000 of my debt
is on a fixed 4.0% interest rate. If I'm willing to do a Chapter 13
(no bluff), how likely is it that an attorney can do a debt settlement
with one or both of credit cards before actually filing for
bankruptcy?
If your attorney is successful in arranging
the settlement, there would be no need to
file bankruptcy under any chapter.
Folks like to get paid, and, if you offer
a settlement that's better than what they
would get in a bankruptcy, generally you
will see some degree of co-operation.
When there are many creditors there often
is one who won't go along. With only two
creditors, your chances of getting both
on board increase.