Ramifications of debt settlement try with US Bank Loan?

[deepseablu]

Hello, and thanks for any help provided.

I have excellent credit but owe $32,000 on a business line of credit with US Bank for a corporation I dissolved in 2006.

Paying this off at $800 per month is hurting my new business during these difficult times. I was considering hiring an attorney to seek debt settlement with US Bank. I understand this will damage my credit for an unknow (?) period of time. It might be worth it though.

Any thoughts or experience with US Bank about this? All feedback would be greatly appreciated.

I would imagine a ramification would be the inability to refinance my house for quite a while. We pay 6.0 fixed now. Thanks!

[MiSSMaGoo]

A friend of mine was able to settle on her US bank loan for half the amount... she owed $12,000 (approx) and they settled for $6000 (approx). I dont know the details but I know she went through a debt consolidating group. Also keep in mind if you do settle, the amount that they write off you will get a 1099 as income for this year so be prepared to pay taxes next year or change your deductions now. My friend had no idea that would happen and she did this with 5 other large loans and had an extra $25000. in income and owes a good amount in taxes this yr and wasnt prepared at all. Hope that helps a little =)

[deepseablu]

Thanks. That's a good point and very helpful!! Any other advice from members would be greatly appreciated