The "Private" Deal

[hjk4300]

We will probably have to file bankruptcy, but are still fighting the idea. I do have income, it's just down 60%, and not coming back any time soon. Not soon enough, anyway.

So I have been offered "modifications" by 2 Visa creditors and a MasterCard creditor. They offer to lower interest rates (or eliminate interest altogether in one case), reduce payments to approx the same as a 100% 5-year plan that a Chapter 13 would put me in, and eliminate late fees. Basically a good deal, but here's my question:

If I agree to these plans - are they still unsecured debt, and still dischargeable under bankruptcy if I have to file? Can they make me "sign away" the bankruptcy rights to get the payment plan?

[tobee43]

depending on when you sign them. if you do...and can't meet them and then file...you should be fine.


if you have income and you CAN make the payments and it's good deal for you...i'd go for it.

[HHM]

Would you really be a 100% chapter 13 plan if you filed chapter 13?

But yes, if you agree to these plans, and still file BK later, the debts are still unsecured (Assuming no new security interest is entered in too).

[AngelinaCatHub]

As stated above, by both previous posters, it is a good deal. HOWEVER, if you have to sign anything, read it like your last will and testament as you do not wish to reaffirm before reaffirmation is required. DON'T SIGN OFF YOUR RIGHTS. (They are getting tricky these days). 'Hub