Personal Loan for Debt Settlement Purposes - Avoid filing Chapter 13

[RW3]

Hi,

Hoping someone can assist. My underwater HELOC is playing hardball and I am facing the realization of having to file Chapter 13 BK.

I am very confident that they would settle w/ me if I presented them with an offer in the 40-50% range and avoid having to file.

Does anyone have any experience or anyplace they can direct me to where I might obtain access to funds in the $20,,0 range that I could pay back over 5 years?

[justbroke]

If you are having debt problems, with a low credit score as well (low meaning under 680), you are not going to get a $20,000 signature loan from any reputable place.

[dmc-2008]

I think you need to consider the tax ramifications if you settle the heloc. You might have to pay tax on the difference? If you lien strip it is gone and no tax liability. You are underwater so you have that option. Good luck

[spidge]

Sorry I cannot help with the loan. What would the difference be from paying the loan and a ch13 payment? Many variables here. I would see a couple attorneys before making that decision so you could at least be better informed. Settling can be dangerous if you don't know how to navigate the waters. If your not careful in some states the uncollected balance can still be sold and collected upon. Never mind getting the mortgage company to remove the lien entirely.

Fingers crossed for you.