Legal Question in Bankruptcy in Kentucky

Should I dump debt settlement and file bankruptcy?

I am in over my head in unsecured debt. Currently I bring home about $2500 a month and have unsecured debt payments of $1000 a month. I am carrying $39000 in unsecured debt on 6 credit cards and 2 unsecured loans. I own my home and I am current on the payments. I have just signed up for debt settlement @ $490 a month and they charge 9% of my total unsecured debt. Basically, they will charge me $3500 and wait until the accounts go into charge off status and then start offering settlements. I am 2 months behind on everything except my home and the creditors are driving me crazy. Should I bite the bullet and file bankruptcy or stick with the debt settlement company? Is chapter 13 a viable answer. Can I keep my house and cars? Someone please HELP ME!!!! I am desperate.


Asked on 11/04/04, 11:12 am

2 Answers from Attorneys
Steven Schiller Steven L. Schiller, Attorney at Law

Re: Should I dump debt settlement and file bankruptcy?

Depending on your living expenses, how much equity you have, if any, in your house and cars, and other factors, you might be a prime candidate for a chapter 7. If there's considerable equity in house / cars, a chapter 13 might be better. You need to speak with someone who can review both your property and your debts to decide the best course. I seldom hear any favorable experiences from clients who have gone through the kind of "debt consolidation" or "debt settlement" firm you are describing. They pay high fees that get them nowhere toward paying off debt, and after throwing away money for a long time, they end up filing bankruptcy anyway. Do yourself a favor: see an attorney before you spend any money on this. Most, like us, do not charge for an initial consultation to review your situation.

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Answered on 11/04/04, 1:34 pm
E. Brian Davis Davis Law Office

Re: Should I dump debt settlement and file bankruptcy?

You need to talk with a lawyer who knows about bankruptcy before you do anything else. Many bankruptcy lawyers offer a free initial consultation: take advantage of it!

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Answered on 11/04/04, 2:56 pm


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