If I am 80,000$ in debt, should I consider a debt settlement company instead of bankruptcy?
I am in debt from helping my son when he was off work. Helping my elderly father. Also, my ex-husband was fired from his job and now we are divorcing. I am in so much debt that I am far behind on payments and I make too much money to file a chapter 7. I would have to file a chapter 13 and pay back a portion anyway. Would a debt settlement company be a better option?
Posted August 9th, 2010 in Debt Settlement. Tagged: chapter 13, chapter 7, Debt Settlement, elderly father, job, much money, settlement company.
Run and run away fast from debt settlement companies.
They will charge you thousands for something you can do yourself for free.
All they do is common knowledge, you just have to know where to get the knowlege from.
Get a book from your bookstore or library on
Credit and Debt Repair.
It will teach you everything these companies do – for free.
How to negotiate, settle, do the pay on delete, set up payments, and reduce interest rates (possibly).
If you are in serious trouble and don’t have time to read and do it yourself there is a federally approved agency that is there to help you at absolutely no cost.
National Foundation for Consumer (credit) Councelling.
NFCC.org
Go to the site and call the 800 number and make an appt at a local office.
Again, this is a non-profit – no cost to you.
If they put your on their Debt Management Program the max cost is $25 a month.
But only if you can afford it.
Positive reviews call them angels from above.
Negative ones say it’s embarrassing – since you have to show them all your bills.
If bankruptcy is your only option – they will be honest and tell you.
August 9th, 2010 at 7:00 pmAgain, do not go to any service that has the words negotiation, or settlement.
They will charge you thousands and allow your bills to go unpaid so they can collect their fees upfront.
Most people end up in court anyway.
Reviews (all say) that they wish they would have just paid the thousands to the creditors.
/
From what you say debt settlement may be your first option to consider.
August 9th, 2010 at 7:00 pmFirst, you must realize that you wanted to help your son, father and husband . . . but you did not have the money to do so. Just like the fact THEY didn’t have money, neither did you. You need to know when to say no! You may have difficulty filing for bankruptcy during a divorce procedure, so the best thing to do would be to organize your debts and FIRST try to call and settle yourself. Realize that these companies don’t work for free. Bankruptcy would be hard for you know, since you are starting out on your own again. This mark on your record would make it almost impossible to get loans or even rent a home in the immediate future . . . which you may need to due because of the divorce.
August 9th, 2010 at 7:00 pm