How was the process? Any caveats and words of wisdom you want to share? I'd love to hear your story if it's something you're ok sharing!
My story:
So my business didn't fare well over the past two years, things took a nosedive with the start of the pandemic. I'm about 75k in debt. Luckily I've started a new job that pays fairly well even for the high cost of living in NJ. So I took a look at my debts and spoke to my creditors, about 80% are willing to settle for 40-60% of what I owe them, however 20% refuse to settle for anything less than what I owe. I told them that if I can't make ends meet I will have to declare chapter 7 and they might get nothing... they don't care apparently and have filed for suit.
So I see things this way: I could, possibly borrow even more money from friends/parents and pay these 20% of unwilling creditors, then go on a payment plan for the rest. It would probably take me almost 2 years to get out of debt.
But during those 2 years, my credit wont be any better (high 400's currently), I won't be able to put anything away for savings, much less be able to afford anything like a vacation. Any mishap, like an issue with the car, or health, and we're back in the hole in probably a worse situation.
We don't own a home or car (still paying the car off) and have no savings now.
I think Chapter 7 makes the most sense for us, right? Start fresh, be able to put money towards savings and hopefully home in a few years vs giving it to the multi billion dollar corporation that already wrote off our debt and sold it to a collector. Or is it?
Going to talk to a lawyer this week so this isn't legal advice, just would like to hear some past experiences/opinions.
Thanks!
My story:
So my business didn't fare well over the past two years, things took a nosedive with the start of the pandemic. I'm about 75k in debt. Luckily I've started a new job that pays fairly well even for the high cost of living in NJ. So I took a look at my debts and spoke to my creditors, about 80% are willing to settle for 40-60% of what I owe them, however 20% refuse to settle for anything less than what I owe. I told them that if I can't make ends meet I will have to declare chapter 7 and they might get nothing... they don't care apparently and have filed for suit.
So I see things this way: I could, possibly borrow even more money from friends/parents and pay these 20% of unwilling creditors, then go on a payment plan for the rest. It would probably take me almost 2 years to get out of debt.
But during those 2 years, my credit wont be any better (high 400's currently), I won't be able to put anything away for savings, much less be able to afford anything like a vacation. Any mishap, like an issue with the car, or health, and we're back in the hole in probably a worse situation.
We don't own a home or car (still paying the car off) and have no savings now.
I think Chapter 7 makes the most sense for us, right? Start fresh, be able to put money towards savings and hopefully home in a few years vs giving it to the multi billion dollar corporation that already wrote off our debt and sold it to a collector. Or is it?
Going to talk to a lawyer this week so this isn't legal advice, just would like to hear some past experiences/opinions.
Thanks!