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How Realistic is my settlement Plan?

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New Contributor

Re: Settling with NASA FCU (RA Rodgers)

Thanks for your interest input! I would much rather have settlements than a bankruptcy: bankruptcy comes with s public record and is an automatic exclusion for grad plus loans for the first 5 years.
Message 21 of 23
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Frequent Contributor

Re: Settling with NASA FCU (RA Rodgers)

I too considered bankruptcy before I ultimately decided to do my own settlements. My only option was to file a chapter 13 based on income, which would mean paying back all my debt, plus interest, plus attorney's fees, plus court costs. And they were expecting my husband and I to live on a budget of $2,000 a month for five years while making our BK payments. Our rent is $1,300, so that was completely unrealistic and ridiculous. Settling my debts has been one of the best decisions I have ever made.

Message 22 of 23
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Frequent Contributor

Re: Settling with NASA FCU (RA Rodgers)


@medo wrote:

Also it is not true that settlements has the same effect as BK. It's been reported by many around here that after settling their debt their credit immediately began to rebound with some banks allowing them to get credit a few years later.

Plus I'd rather say 'no' when asked if I've ever filed BK

This is my feeling too! 

 

I considered bankruptcy but was able to avoid it and I'm glad I did. I know that sometimes it's the best choice and worth it. But I don't regret that I was able to avoid it.

FICO8: Nov 20, 2018:
FICO8: Nov 20, 2019:
FICO8: May 3, 2020:
Goal for December 2019: FICO8 640-700 (reached! Fico 681!)
Goal for December 2020: FICO8 685-710
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Overstock $7,750, Walmart $500, Discover IT Cash Back $2400, Navy Fed cashRewards $2000, Shell (Citi) Fuel Rewards $800, Navy More Rewards $17,000, AMEX Cash Magnet $1000, Citizens Bank Cash Back $2,800, Amazon Store Card $1700, Cap1 QS $1000, FBNO Visa $1600, (RIP Green Dot Platinum Secured)

Starting Score: 539
Current Score: 678
Goal Score: 760


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Message 23 of 23
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