Is it better to settle my debts or file for Chapter 7 bankruptcy?

Question

I get letters from creditors offering to settle my debts for a lower amount. I owe about $17,000. Some debts have been charged off and I don't know who to contact now. Doesn't it still hurt your credit to pay off the debts anyways? Isn't Chapter 7 just easier? Please help from anyone who has gone through Chapter 7. Thanks!

Answer 1

If you are able to settle the debt, settle it....Bankruptcy as the last post stated stays on your credit report for 10 years...the debts stay for 7 years, and will show as included in the bankruptcy. If you decide to pay them off, make sure you request a pay to delete so they take them off your credit report. To settle would be easier if you have the available money to do so. In the future when trying to finance anything new, they will look at your current payment and not necessarily the old debts. Chapter 7.........no it's no easier, it's easy to pay an attorney, it's easy to file, take the credit counseling and wait to have it discharge...It's hard to re-establish credit, harder to buy things in the future, and harder to find jobs if the check your credit report for employment. There is nothing easy about filing a bankruptcy. If you do file, learn from it and re-build and try not to do it again..there is life after it, but, it's a tough road to climb!  Good Luck!

Answer 2

Settle.....no it will haunt you later in life.  It'll stay on your record for 10years and for less than 17k you can knock that off if you work with the creditors to get on a payment plan.

Dave Ramsey can give you more advice, he has been through it just google him.