Negotiating a Deal with Creditors

[ando]

I am about to pull out all money I have in my retirement account and start negotiating with my creditors. Should I do it? Or should I wait to sell house and pay them. debt is 100 grand . Equity in house is 100 grand . Same amount in retirement fund. What should I do?

by the way , I just feel insecure having no money left for unexpected disasters. should I file bankruptcy? what chapter?

[HHM]

If you have $100K in your retirement, do not touch it. Sell the house (assuming you really have the equity in it), and make a deal with that money. The tax consequences and the risks associated with early retirement withdrawals is not worth it.

[ando]

Thank you HHM, roughly speaking what % do you think they may accept?I am talking for example , let us say Citi, Chase , BOA and what have you. Are they hard to negotiate with? and what is the minimum they accept?

[HRx]

Leave your retirement monies alone and consult with an experience BK attorney sooner rather than later.

[HHM]

Thank you HHM, roughly speaking what % do you think they may accept?I am talking for example , let us say Citi, Chase , BOA and what have you. Are they hard to negotiate with? and what is the minimum they accept?

There is tons of information in the collection section of this forum.

Is there any other reason you need to sell the house? If you filed BK, would the equity be exempt? You might be able to save both your retirement and home equity if you file BK. I would follow Hrx's advice, before you DO anything, consult with a BK lawyer.

[ando]

yes only 50 grand exempt.