Debt Settlement a good idea?

Intergalactic57 · ‎05-27-2014

I currently have a number of accounts in collections, and others that are 60-90+ past due.

Here is a breakdown of the amounts:

Eviction - $4,200.00, sent to collections agency.

Bank - $1,600.00, sent to collections agency.

Medical - $200.00, sent to collections agency.

Tuition - $9,000.00, sent to collections agency.

Private Student Loan - $18,000.00, defaulted.
Credit Card - $1,400.00, sent to collections.

Credit Card 1 - $750.00, 60 past due.

Credit Card 2 - $500.00, 60 past due.

Credit Card 3 - $550.00, 60 past due.

Credit Card 4 - $900.00, 60 past due

Credit Card 4 - $1500.00, 90+ past due.

Cable / Phone / Internet - $2,500.00, possibly in collections.

Is a debt settlement company a good idea at this point? I don't know where to start.

Intergalactic57 · ‎05-28-2014

Maybe Chapter 13 is a better idea?

Shogun · ‎05-28-2014

Looks like your in a bit of a mess. I don't know what your income situation is, or what funds you have. If you are continuing to fall behind, I'd see about maybe a BK or something along those lines.

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Intergalactic57 · ‎05-28-2014

Current income is $65k.

I think 13 might be the best bet.

Drsgwld · ‎05-28-2014

Bro you need to survive. Ch13 is far shorter than 7. Keep a couple revolving you have current and get this paid off ASAP with assistance. After all of this, STAY on top and nothing is worth more than sanity, integrity, freedom and family.

fishbjc · ‎05-28-2014

$65 may be a decent income in Detroit, but not so much in Hawaii. Only you can assess your living obligations, transportation and food.

It looks like you owe around $40k? Can you pay it off reasonably? Or is a fresh start needed? You also have to pass the means test.

Only you can determine which is best, a 13 or a 7.

Drsgwld · ‎05-28-2014

^ I agree, but I've seen the Bankruptcy Judge make the decision also! A safe bet on being able to live life financially stress free and allow for glitches in life is to keep your debt to income ratio @60%. Most people who live off credit far exceed that. Even if your monthly living expenses are at 60%, by the time you calculate food and other allowances, it doesn't take long to live paycheck to paycheck which is NOT a good goal!!!