We are $60000 in debt and can not figure out which route to take. If you do the debt consolidation or bankruptcy, they both hurt and stay on your credit report. Need some help.
Printable View
We are $60000 in debt and can not figure out which route to take. If you do the debt consolidation or bankruptcy, they both hurt and stay on your credit report. Need some help.
By "debt consolitation" you mean credit counseling? Debt consolidation would typically mean that you find a lender who is willing to give you a loan sufficient to pay off all of your existing debt, consolidating your debts into a single loan with a lower total monthly payment.
Some companied will charge you around 15% to get a lower payoff amount on your loans. Which has to be paid off within 48 months.
And some will try for lower intrest rates which will still take 6-10 years to payoff. All of which kills your credit or go bankruptcy?
So you're talking about credit counseling, not refinancing.
The type of negotiation you describe is generally regarded as almost as harmful to your credit as a bankruptcy proceeding, but under the Bankruptcy Reform Act it may be required before you can proceed with a bankruptcy. Even a Chapter 13 bankruptcy would likely result in a more favorable payment plan than either option you describe. Your best bet is to discuss your situation with a local bankruptcy lawyer to decide what is best for you.
I'm trying to keep our home a transportation so I can still make some income, I've heard we would loose this. True? Even with Chapter 13.
A bankruptcy lawyer can explain your exemptions under the laws of your state. This site provides an overview of Tennessee's exemptions:
Quote:
Quoting Tennessee Bankruptcy Exemptions
Any debt counseling agency that asks for any significant money upfront is a scam. They take your money and do little or nothing for you. The ones that do accomplish anything mainly accomplish screwing up your credit and save you a few bucks. Be very careful and do your homework before signing up with any private business or even a non-profit that says they can help you.