Is it worth cashing in retirement to pay off settlements with credit cards or file bankruptcy? – James
I have $100k in unsecured credit card debt with nine companies. The debt ranges from $2k to 42k.
I have about $21,000.00 in retirement money I am willing to use to pay them off. The problem is I need all the credit cards to agree or I cannot succeed. I am on the verge of paying my BK attorney, but I thought I would consider a settlement.
Is it possible settle credit card debt to avoid bankruptcy?
It is unlikely you will settle all of the debts at 21%. If you can add money to the 21k over a reasonable period of time, settlement may make sense. I will need to know what your balances are with each creditor to give you a better estimate of what type of money you will need over all. Feel free to post a comment reply below and include:
Name of creditor.
Balance owed on accounts.
How many months late you are with payments.
Who your debt is being collected by if not the original creditor.
Also, please provide a brief explanation of why you are trying to avoid bankruptcy. Are you hiring the attorney for a chapter 7 or 13?
Bankruptcy may be the better solution depending on what I have to share with you after you respond.