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Debt Settlement vs. Chapter 13

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julbug66

Member
What is the name of your state? Arizona


Since his divorce two years ago, my husband, who was saddled with all of the community debt, fell behind on his credit cards when he was laid off. anyway, there's about $12K in "charged-off" debt on his credit report, two cards of which are still accumulating interest (about $100 a month). we are trying to decide whether or not to go through debt settlement, which would lower our debts and give us a couple of years to pay off these debts through a third party, or to go through Chapter 13. they kind of seem similar to me as far as monthly payment amounts and time-line go. however, i've heard that "debt settlement" can really hurt your credit. i can't imagine that Chapter 13 looks any better, but either one is better than not paying these cards off at all.

has anyone else faced a decision similar to this? any advice on either procedure, or does anyone know whether or not debt settlement is a good idea or not? i dont want to get taken to court over a $4000 card that is now at $6000, and that's what BOA is threatening to do. ugh. i could use some help. thanks!
 


I have a very low opinion of debt consolidators. The ones that you hear about are often for-profit scams preying off of desperate people -- how else can they afford to advertise?

If you can, talk to a legal aid office about what credit counselers in your area may actually be reputable. Even your Better Business Bureau is not going to know, because people don't often file complaints.
 

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