Bankruptcy or Debt Settlement?

[boys4]

What is the name of your state (only U.S. law)? california,

I am selling my home in a short sale process and also have considered debt settlement for all my debts, which are approximately $30,000.00. Would I benefit from filed bankruptcy instead or doing the debt settlement? And if so, which bankruptcy chapter would be more beneficial for me.

[seniorjudge]

By "debt settlement" I am hoping you mean paying your debts off rather than using one of those shyster companies.

[Gregeney]

It's impossible to answer your question without knowing your financial situation and financial plans.

[nrknlknek]

Gregeney is of course corect. That said, paying off your debts is normally better than BK. In fact, if you have the wherewithal to pay them off, it is likely you will NOT qualify for BK . Suggest contacting a competent BK attorney---typically their initial consultations are at no charge.

[Ladynred]

Of course he/she could 'qualify' for bankruptcy.. where are you getting this nonsense ?
The OP may not get a Ch 7, but a Ch 13 is available for most people.

Debt settlement companies are mostly a scam. Creditors do NOT have to work with them, your credit will be completely trashed, you could still be sued during the process, and you open yourself up to tax liabilities.

If you can pay part of your debts, then go for the Ch 13 where you will have protection from creditors, you can't be sued, and you will incur NO tax liabilites. Debt settlement companies on your credit reports is a big negative - nearly as bad as a bk.