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?
—James
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.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
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