Chapter 13 or debt settlement

[BOBBY1269]

Hi ,

Me and my wife are just now contemplating chapter 13 and we are not sure what to do , we are lost but this looks like the place to start - great people here !!! quick capsule on our situation :

1st mortgage is current and is underwater by $40000.00
2nd mortgage $ 38000.00 bal - completely underwater

we have 6 credit cards - 3 of which are in " charge off status " right now , the other 3 are 3 months behind all credit cards combined is $7000.00 ( not much ) but interest and late payments are accruing

Our problem is we do not know weather to go chapter 13 and get the 2nd mortgage stripped along with credit cards or pay the 2nd mortgage and hope that we can get settlement with the credit cards most people say go chapter 13

Either way its a tough call - do we go chapter 13 and live under a strick budget ( we will have to pay almost 80% back if we chapter 13 debt and its all unsecured debt ) or just pay the underwater 2nd mortgage and negotiate a settle ment with credit card company on the charge off's

Charge offs stay on you credit for 7 years just like chapter 13 - I am just looking for the best solution to our problem

I will need a car soon with 3 charge offs or chapter 13 either way it is going to be hard to get a loan - what do you think ?

tried to get a car loan a month ago and was denied because of the charge offs - i do not think you can get a car loan with a balance on a charge off the dealer said i could a loan if the charge offs were in a "paid status " however this is not the case right now .

Need to make a decision soon as the cc company ( capitol one ) is threatening law suit on a 2400.00 balance

Thank you for your time and replys

Bob

[Mayo]

Go talk to a BK Attorney and they'll give you advice. As far as the car once you are in a 13 you can check into purchasing one.

[lillymarlene]

Hi ,

Need to make a decision soon as the cc company ( capitol one ) is threatening law suit on a 2400.00 balance

Bob

I would talk to a few attorneys soon and make a decision. Capitol One may make good on their "threat," at least they did with me. This creditor had one of my smaller balances, and they had a law firm collection agency deliver me a summons less than a year after I had stopped paying.

[BrewCity]

Yeah, Capitol One doesn't mess around. I had a $500 limit with them, with penalties and fee's it came to something like $780 and they sued me for that.

[mountanddo]

I would talk to a few attorneys soon and make a decision. Capitol One may make good on their "threat," at least they did with me. This creditor had one of my smaller balances, and they had a law firm collection agency deliver me a summons less than a year after I had stopped paying.

Ditto, same with me.

[keepsmiling]

What's the income situation?

[kornellred]

Bankruptcy trumps debt settlement in 99% of cases. Creditors proceed according to established protocols that are never to the debtor's advantage. The best candidates for debt settlement are high-earning individuals who actually can do without credit.