Should I Do Debt Settlement Or Bankruptcy?
Posted on
September 2, 2009
at
11:25 pm
I'm done with paying just the minimum on my debts...I've been doing this for years and it's all so pointless. It's not like I'm not paying every month. I am. And I'm tired of it. I'm about to default on some of my payments and it's not a nice feeling. As if I did nothing to eliminate what I owe but that's all I do! I was thinking of filing bankruptcy just to make it all disappear you know? But somebody suggested debt settlement. I don't know how one differs from the other, so should I do debt settlement or bankruptcy instead?
Posted on
September 2, 2009
at
11:52 pm
"Should I do debt settlement or bankruptcy?"It really depends on your financial situation. Are your debts mostly secured or unsecured? Do you have a steady source of income? Are you already receiving collection calls or been threatened with a lawsuit? (Those would be very good reasons to file bankruptcy as you can avail of the automatic stay provision). Have you already calculated how much debt you have, overall?
Posted on
September 3, 2009
at
12:07 am
"Should I do debt settlement or bankruptcy?"If you owe mostly unsecured debts and they amount to more than $10,000, you may qualify for a debt settlement program. You mentioned that some of you are about to default on some of your accounts - that's a plus too for debt settlement. Your accounts must be past due to qualify as that's one of the factors needed for negotiation. If you have assets to liquidate and you pass the Means Test (state income test) then you can file Chapter 7. If you fail the Means Test, you'd be forced to file Chapter 13 instead. It's a repayment plan supervised by a court trustee.
Posted on
September 3, 2009
at
12:25 am
In terms of completion time and fees, how do they compare to each other?
Posted on
September 3, 2009
at
12:42 am
Should you file bankruptcy, the completion time is as follows:A Chapter 7 case usually lasts 4 to 6 months. About 60 days after the Creditors meeting, a deadline called the "Dischargeability Date" passes. If your creditor did not file a formal objection by that time, the Judge will then sign the Discharge Order ( about two wees later). It's quite different with Chapter 13 because as soon as the repayment plan is approved by the Court, the case remains open for three to five years.
Posted on
September 3, 2009
at
1:05 am
Debt settlement programs usually last for 12-36 months.With regards to fees: Debt settlement companies will usually charge 15% of the total debt amount and spread the fees out over 18 months or they will take a percentage of the settlement amount, usually between 20-25%.
Posted on
September 3, 2009
at
1:24 am
Should I do debt settlement or bankruptcy?Bankruptcy costs, monetary and the whole tedious process alike--. For Chapter 7 it is $299 and $274 for Chapter 13.
Posted on
September 3, 2009
at
1:30 am
Gideon was referring to the filing fees - should you file bankruptcy over debt settlement, expect to pay these amounts in addition to the filing fee: Depending on the complexity of the case, attorney fees can reach up to $2000-$3500 for Chapter 7 and the average cost for Chapter 13 is $2,800-$3,000(?)
Posted on
September 3, 2009
at
1:47 am
Should I do debt settlement or bankruptcy?From which state are you? Even if you've decided that debt settlement is the perfect debt relief option for you - you might not be able to hire its services if you live in the following states:GiorgiaIdahoKansasMaineMississippiMinnesotaNorth and South CarolinaUtahWisconsinYou have the option though of doing a do-it-yourself debt settlement or look for a law office that practices debt settlement too.
Posted on
September 3, 2009
at
2:14 am
Should I do debt settlement or bankruptcy?I think that you'd only arrive at a smart decision, if you would undergo credit counseling, or debt consultation. Your financial situation must be factored into this and since this is a public thread, it's understandable that you might not want to discuss it here. Destroydebt.com offers free initial consultation, just fill out a form.
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