DEBT! what should i do debt consolidation,debt settlement bankruptcy (kind of long)

[CCA1984]

Hello to everyone

I've been reding on here and seen the great questions asked and answered, and thought i'd ask a few questions. Ok so here is my situation, i have total about 35k worth the credit card debt (3 cards, amex 20k, visa 5k and another visa 10K), a 12k car loan and a house in WA. currently reside in CA and pay 600$ for rent and make about 35k a year. my CC payments for all 3 cards are around 800 a month min. my house in WA my dad rents from me for about $1100 and i pay 250$ a month for. my car loan is $350 a month so money is very very tight. I wanted to get advice from the pros ( here hehe) and see what are my best options. Should i try consolidation or debt settlement/relief? Or would bankruptcy be the best bet? I want to know if i would be able to keep my house in WA, if it came down to it and i had to get rid of the property then so be it. but would rather try to save what i can. Or with bankruptcy would it make more sense to put everything under it as 1 and take my losses? I am current and up to date on all my payments and am not deliquent on anything. I want to be able to breath from financial freedom. I have been reading these forums for a while and have seen some great information. Just want to see what everyone here would say. I know BK will mess up my credit for a while and i am prepared for that. if there is more info you'd like me to supply to help with the answers please let me know and thank you for taking the time to read this.

Thanks again and hope everyone has a great day

Collin

[hamburgervol]

Most debt settlement companies are scams that make matters worse(my opinion). If you are going to try and settle with the CC companies on your own, you would most likely have to be a few months behind on your payments for the CC companies to offer a settlement.

What is your home worth and what do you owe?

You might want try the Means test below to see where you stand regarding BK.

http://www.legalconsumer.com/

[AngelinaCatHub]

Yes, the house is the problem. So you wish to keep it? Are you not living in it or what is it's situation? BK is a personal decision. You must evaluate all things in your life.

There is not enough info here to say or help you from my prospective. 'Hub

[ForumReader]

Please, by all means stay away from debt settlement companies!! I have fallen victim to one of them and regretted it ever since. They are not worth a penny. Find solutions to how to take care of your debt whether it is through BK or waiting your ccs out and work out settlements with your creditors yourself. Debt settlement companies, no no. to them.

[klandsb]

Yes, I was also sucked into the Debt Settlement promise of financial freedom... Stay as far away from these scumbags as possible. Try to settle yourself if thats what u choose to do but as said before you have to quit paying them in order to get an offer.
As for bankruptcy, its a personal choice, and when you have no other options it is an opportunity to change your financial situation. Yes, I wish I was a Chapter 7 case in some ways but I am not. Thankful to have a job in this economy...

[swampwiz]

Why are the debt settlement firms scams?

[JimKutkowski]

Why are the debt settlement firms scams?

they teach you to go past due on your credit cards to negotiate lower balances with the creditors, but the reality is that if you go more than 90 days past due on any balance you are treated as if you file for Chapter 13 bankruptcy, so what is the point of debt settlement, there is none.

I've actually seen it or Chapter 7 or Chapter 13 bankruptcy has improved a client credit score immediately. Its not like I use that as a marketing point because most of time it doesn't, what it does do is stop the bleeding and give you a chance to get your financial life back in order.

Finally, bankruptcy forces creditors to work with the courts terms rather than you negotiating hat in hand. A mouse is better off negotiating with the cat than you are negotiating with the credit card company, regardless of what these credit counseling companies say.

[CCA1984]

Most debt settlement companies are scams that make matters worse(my opinion). If you are going to try and settle with the CC companies on your own, you would most likely have to be a few months behind on your payments for the CC companies to offer a settlement.

What is your home worth and what do you owe?

You might want try the Means test below to see where you stand regarding BK.

http://www.legalconsumer.com/

Thank you for your response, and appreciate the info on the settlement companies. My home is probably going to be sold to my dad for whats owed on it. just to have that off my mind and no more worries.

[CCA1984]

Yes, the house is the problem. So you wish to keep it? Are you not living in it or what is it's situation? BK is a personal decision. You must evaluate all things in your life.

There is not enough info here to say or help you from my prospective. 'Hub

Thank you angelina big time for your response and wanted to get some more info. My dad lives in it and rents it from me. I want him to take it in his name, so it doesn't get lost in the BK. if i got rid of it do you think i would qualify for ch 7 ?. i look at my situation like this; i honestly dont think i would be able to pay off all my CC debt within that time of 5-7 years. i need a fresh start, but i know the consequences of BK and am prepared for it. I want to be able to qualify for ch7, i havent had a late payment on any of my cards/loans. But what would you recommend from what i have so far? thank you again for your help. it truly means alot to me

[CCA1984]

Yes, I was also sucked into the Debt Settlement promise of financial freedom... Stay as far away from these scumbags as possible. Try to settle yourself if thats what u choose to do but as said before you have to quit paying them in order to get an offer.
As for bankruptcy, its a personal choice, and when you have no other options it is an opportunity to change your financial situation. Yes, I wish I was a Chapter 7 case in some ways but I am not. Thankful to have a job in this economy...

Thank you Kland, i will stay far away from what you have told me ( thank you). did you fille ch13 ? i would want to eliminate all of mine. given my situation ( above posts) do u think i would qualify for ch7 ?thanks again though and have a great day

[CCA1984]

BTw to all the posters, i want to keep my vehicle for driving to my job any advice would be great

thanks again

[OhioFiler]

Thank you for your response, and appreciate the info on the settlement companies. My home is probably going to be sold to my dad for whats owed on it. just to have that off my mind and no more worries.

This transaction must be at fair market value or there will be a problem should you decide to file bankruptcy.

[StartingOver08]

OP, be very careful when you sell your house. The look back period for the sale of real estate is a long one: up to TEN YEARS. The look back for insiders is one year. Your father is an insider and if you sell to him for less than fair market value, the Trustee can avoid the transfer.

Do you have any equity in the house or is it upside down? The Trustee will be interested if there is equity...not so much if you are upside down. But you will need to show the values.

[ForumReader]

Why are the debt settlement firms scams?

In addition to what Jim said, not only they teach these debtors to go past 90 days, they also want upfront fees and certain number of monthly fees so that their arbitrators can negotiate with the creditors. Yeah right. However, from my experience with a debt settlement company, I discovered the arbitrators there actually let the creditors make offers and then the debtor would receive letters of offer directly from the creditor (s) and not through the debt settlement company. Jim is also correct that a debt settlement company works very similar to being in a chapter 13 but these settlements being in lump sum or a couple of months payments to the creditors. To the OP, whichever avenue you choose for taking care of your debt, I wish you the best..just stay away from DSCs (debt settlement companies)

[CCA1984]

This transaction must be at fair market value or there will be a problem should you decide to file bankruptcy.

thanks Ohio for the quick response, now what if i sold the house for what is owed to him ? would there be a problem with the BK with that? thanks again