Bank of American has offered to settle four of my accounts having a total balance of $75,000 for 15% or $11,250. Been 120+ days since I paid anything on those accounts. Payable 1/3 a month for three months. Going to be tough to come up with the cash, may have to sell one of my three cars (i have four of them).
Other unsecured obligations total about $40k and include sears $12k, discover $7k, kohls $2k, chase $4k and GM cards $13k. Have paid very small payment to kohls and discover so I am not as behind. So far I get a few calls but not many from the creditors.
Upside down on my home mortgage (owe $130k, worth $100k) and the one car that I still owe on (owe $12k worth $10K).
Lawyers say I would have to file chapter 13. Chapter 7 is out of the question. Make too much $ and have too many cars. Probably would have to pay $700 a month to the unsecured creditors if I went chapter 13. Over five years would be $42,000.
Regarding possible settlement (if i can manage to come up with the $11250 to begin with), I know there is a 1099c issue. But I thought since my net worth is negative, there would be no tax due?
The BofA settlement sounds good to me. Eliminates 65% of my unsecured debt quickly. But, since the other card companies may still come after me for the remaining $40k, I am not sure if it is a good idea.
I am looking for comments and suggestions.
Thanks
Other unsecured obligations total about $40k and include sears $12k, discover $7k, kohls $2k, chase $4k and GM cards $13k. Have paid very small payment to kohls and discover so I am not as behind. So far I get a few calls but not many from the creditors.
Upside down on my home mortgage (owe $130k, worth $100k) and the one car that I still owe on (owe $12k worth $10K).
Lawyers say I would have to file chapter 13. Chapter 7 is out of the question. Make too much $ and have too many cars. Probably would have to pay $700 a month to the unsecured creditors if I went chapter 13. Over five years would be $42,000.
Regarding possible settlement (if i can manage to come up with the $11250 to begin with), I know there is a 1099c issue. But I thought since my net worth is negative, there would be no tax due?
The BofA settlement sounds good to me. Eliminates 65% of my unsecured debt quickly. But, since the other card companies may still come after me for the remaining $40k, I am not sure if it is a good idea.
I am looking for comments and suggestions.
Thanks
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