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originally posted by: Atsbhct
Settling the debt like this can absolutely destroy your credit for a while, that's the worst thing.
originally posted by: Metallicus
a reply to: iTruthSeeker
You are better off just declaring bankruptcy.
It has the same affect on your credit rating (as if you really need credit if you have trouble managing debt) and you can stick the predatory lenders that gave her the loans with the bill instead of repaying them.
Depending on her situation you can go chapter 7 which is liquidation. If she doesn't have assets of significance this is ideal. You simply discharge existing debt and you get to keep your home, your car (reasonable value) and many other assets.
Chapter 13 keeps you in the system for maybe 5 years or so and you repay some of the money for pennies on the dollar. You can keep more investments and assets this way.
A lot of the debt relief scammers were started by credit card companies to mitigate their losses from bankruptcy. I would just say screw 'em and get rid of the debt.
originally posted by: Atsbhct
Settling the debt like this can absolutely destroy your credit for a while, that's the worst thing.
originally posted by: mysterioustranger
a reply to: iTruthSeeker
13 years ago...mom owed $20,000 credit cards, reg. bills etc. Paid lawyer 1 time fee (I think $250) and he had her pay $120 per month without missing for 24 months (2 years) and those went thru him to her creditors.
$2500.00 aprox wiped nearly $20k....I believe it was Chapter 7 Bankruptcy...lasted only the 2 years until the agreed debt was paid...and then credit returned to normal. And she got a few minor cards for emergency. She never used the cards either again.
Most of her bills were medical related, and she passed a year or so later. I'd suggest Debt Relief.
Good luck
originally posted by: iTruthSeeker
...They negotiated with the CC companies to settle for half the money...
originally posted by: RickinVa
I agree with the previous sentiments.
If you qualify to file a chapter 7 bankruptcy, by all means do it.
Make absolutely sure you include all debts.
You will be getting credit card offers within 2-3 weeks.
Sure it is a hit on your credit score, and you will suffer through a couple of years of high interest rate credit cards, but the relief of being out from under the burden of debt negates all that.