Posted on Friday, 20th August 2010 by Lucy Hales
Q: I have two Chase credit cards with total debt of $27,000, around $12,000 and $15,000. Think of settling this credit card debt and can not decide if I should go with a debt settlement company or do it myself. I mean I am unemployed for 5 months and have nothing much going, so I can just start settling with Chase without any help, at least try. I have may be $10,000 in savings and are moving with my brother since I will be loosing my house to foreclosure soon. So I can offer them around $5,000. I am afraid that once I am foreclosed and my credit is ruined, Chase won’t be settling on good terms.
A: Before you start settling see if there is another way out. I mean, you are unemployed, about to get foreclosed and you are worried about credit card debt? No matter which state you live in, you sound pretty insolvent to me. By the way, settling credit card debt with Chase or every other lender should be done without any third party dent settlement shop. What you need to do is start talking to a bankruptcy attorney because you may be riped to file Chapter 7. Depends on how long your unemployment benefits will continue, how much you are getting and what are your expenses.
I would not worry about what Chase would offer later. If you are not working and will lose you home shortly, Chase or any other lender will probably offer you a good deal. They understand your credit is ruined regardless and you have nothing much they can garnish as I do not think any state allows garnishment of unemployment benefits. Had you worked then it would have been totally opposite scenario. Chase would see that your biggest monthly expense – your mortgage is gone and would be going hard after your paychecks if you give them hard time settling credit card debt on their terms.
But that is besides the point. Now you need professional help, so find a qualified bankruptcy attorney and have him or her go through your finances. I have a gut feeling, you will be in much better shape a year from now, at least debt wise.
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Tags: Card Debt, Credit Card, Credit Card Debt, Settle
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