Chapter 13 Debt Relief
Posted on
December 4, 2009
at
4:35 am
I am planning on filing Chapter 13 for my 5 credit cards. I can't afford to pay them anymore that's why I've stopped my payments. Declaring bankruptcy should wipe my slate clean but I have no idea how to begin. Can you help?
Posted on
December 4, 2009
at
4:38 am
Hi, you know you don't have to file Chapter 13 (repayment) bankruptcy just to get rid of your credit card debts. There are debt relief options for you depending on the amount of that debt. Since you've already mentioned that you've stoppped payments -- I am assuming that your accounts are now past due.Try debt settlement first. Debt settlement is for debt amounts that are $10,000 or more (accounts past due). What it can do for you is reduce that balance to more or less half of its original amount in 12-36 months.
Posted on
December 4, 2009
at
4:41 am
I agree. Bankruptcy can impact your credit greatly. A chapter 13 stays on your credit report for 7 years and 20 years on your public record. Debt settlement stays on your credit report for 7 years as well but not on your public records at all.As for the fee - you would be charged 15% of the total debt amount spread over 18 months or a percentage of the settlement amount (20-25%)
Posted on
December 4, 2009
at
4:46 am
If you are not being evicted or is not facing foreclosure or repossession anyway, don't file bankruptcy. If your creditors/collection agency is not threatening to sue you for judgment - it's much better to negotiate with them. Be honest and tell them what you can afford to pay.That is, if you are doing settlement d.i.y. If, on the other hand, you'd want to enroll in a debt settlement company, please feel free to fill out a form here at destroydebt.com, and get matched up to the right company.
Posted on
March 1, 2010
at
5:14 am
An interesting question: Chapter 13 bankruptcy versus debt relief programs - which would the creditors prefer?
Posted on
April 1, 2010
at
8:17 am
I would not even suggest you begin your self try contacting a professional lawyer.
Posted on
April 4, 2010
at
10:02 pm
Chapter 13 is a bankruptcy type. Debt relief is a program as well as an industry that negotiates consumer debt with their creditors/collectors.
Posted on
April 5, 2010
at
4:58 am
Chapter 13 bankruptcy versus debt relief programs - which would the creditors prefer? -- Mmm. Chapter 13, I think, although I'm not sure...are they going to get the full amount owed via the repayment plan or is that negotiable too?
Posted on
April 5, 2010
at
5:02 am
Yes it's negotiable, I read somewhere that with Chapter 13, the range is from 1-100% of the debt - which would be much preferable to me, if I were the creditor. With debt settlement, if the accounts are past due, the creditor gets 30-60%? of the debt. So I think, they'd prefer Chapter 13.
Posted on
April 5, 2010
at
5:42 am
I guess so too.. but why are we discussing the preference of the creditor? That should come later, when they (hopefully not though) sue the consumer for judgment and wins. But for now, it's up to the consumer to decide what he/she can handle. Remember that bankruptcies are supposed to be avoided because they are taxing all together. Financial wise, emotion wise, the processes, paper work, meetings, PLUS the implication on credit.
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