are credit settlement and chargeoff programs legal?

[bunny2004]

I'm thinking of claiming bancruptcy, but I want to keep my house (that is being rented out by management co.). I am current with the house payments. My problem is that it is only 2 and 1/2 years old and it has $11,000 in equity. I have been told that I would not be able to keep my house. Is this true?
If so, I was thinking of another option. I've heard of credit counseling, but now I'm finding credit settlement programs and even credit chargeoff programs. Are these legal? I think these options would be best for me in order to keep my house.

 

[JETX]

"Is this true?"
*** If this house is NOT your primary residence (your post isn't clear, but implies it is), then it would not be protected from bankruptcy.

"but now I'm finding credit settlement programs and even credit chargeoff programs. Are these legal?"
*** Can't speak for all of them (without specifics as to what you are looking at), but 99% or more of them are scams. Simply a way for someone to convert YOUR money into THEIR money.

 

[eloqid]

I had a friend who did this who later filed BK7 anyway. He basically paid a company instead of paying the creditors. When the creditors start calling you would refer them to this company as well as all bills, letters, collections, attorney letters, law suits. in hopes that the orginal creditor will settle the debt at a %.

All at the expense of your credit rating and risk the chance of lawsuits, if you get sued, they pay that one complete if you have the money. Kinda reminds me of the martingail betting system. The house will win in the long run.

 

[bunny2004]

That is the same type of debt repair service I was looking into. Either that or bancruptcy. So that service is legal? I just dont want to lose my house! Even though it isnt my primary residence, it is still mine and I have never been late with my monthly payments.

I talked to another lawyer yesterday and was told if I do a chapter 13 I will be able to keep the rental property and pay the equity in monthly payments. Is this true? How much equity is the allowable amount in order to keep my house?