If I were to settle a debt with one credit card is that considered favoritism or whatever the term is? So can I settle one debt and then move to settle the next one without any repercussions later?
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Why would you throw your money away settling with one creditor if you are still going to have to file BK anyway? Most who try to settle debts and then file BK anyway have one regret: Not filing sooner.
I am not sure of the answer to your question, but if a settlement is considered a preference, it won't really effect you. The trustee will go after the creditor to get the money you paid. The worse it will do is delay the closing of your case, but not your discharge.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
I'm thinking debt settlement instead of bankruptcy if possible. I'll need to find an apartment and I'd like to settle and the debts would at least be paid. I'm just thinking about all options. So if I don't do bankruptcy and settle there is no preference in payment?Comment
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I am not saying it is not a preference. I don't know if it is. I am saying that IF it is a preference, it doesn't really effect you or your ability to get a discharge. It just means the trustee can go after the creditor for the return of the funds.
To determine if it is a preference, you can read Section 547 of the Bankruptcy Code: https://www.law.cornell.edu/uscode/text/11/547LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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Ok, thank you.Comment
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How many creditors do you owe?
It is not a given that they will all settle. Just be aware.
OTOH it is a route to consider, and you are smart to be wary of all ramifications. Read up and make an educated decision.
Also be aware that you may have tax consequences, depending.
Keep On Smilin'Comment
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