Last Try

[Ranger219]

I’m getting closer to going with Chapter 13. Most if not all of my debts were sold to collection agencies. Would it be worth my time to call them and acknowledge I owe the money and start making payments? I could do CH13, but as most I’m trying to avoid it. Who knows, maybe the creditors will just laugh at me. Does anyone have any experience with this idea of mine? Thanks.

[justbroke]

Debt settlement hardly ever works. Unless I had $10K of free cash (not needed for anything) and $50-100K in debt would I ever try to negotiate. Even worse, if you settle for 10% of the balance, you'll get a nice 1099-C and be taxes on that over 90%! Imagine settling for $10K and receiving a tax bill on $90K. Yeah, not fun.

[Ranger219]

Thanks,

I’m with a debt settlement now. I have been giving about $1000 a month since January. So far they have “settled” one account. I have a Warrant In Debt for another and the attorney assigned said he would get the court date moved as they try to negotiate a settlement. I have a feeling this will be one of a few suits over the next few years. I have spoken to a few CH13 attorneys and they believe that CH13 is probably the best bet for me. I assume that is something they say to gain business. However, with over $155k in debt and salary over the min for CH7 it will be a 13 and am inclined to respect the attorney’s opinion in this case. Both have stated that my monthly payment will be around $2800 if not a smidge more. If I go through with it it’s gonna be tough for sure, but it can be done. I’ve thought less about buying a house, marrying my wife, or having kids then I have about this. It is a hard choice for sure.

[justbroke]

It's not something they say to gain business. Debt settlement companies are notoriously bad, you are subjected to a 1099-C Forgiveness of debt, and most debt settlement debtors end up in bankruptcy in the end. It is highly probably that you are literally wasting money by doing debt settlement.

There's no way to tell your actual number without digging into your finances. Approximations aren't worth the amount of money that you paid for them.

Debt settlement may work for you but the odds are not in favor of you achieving your goal of being debt free.

For a Chapter 13, you're better off marrying your loved one as that will help drive down the monthly Chapter 13 payment. I was living with GF and her children and we had to marry for me to support them while in a Chapter 13. It's a tough choice, but it was that or they'd have to go.