I Make Too Much Money to Go Bankrupt So What About Debt Settlement?

“Dear Steve,

Married with 3 young kids, have a house (in home for 13 years), home equity, care lease and loan, and about 150K in unsecured credit card debt. Employed making $130K a year but cant’ keep up with the minimums.

I’m reviewing debt settlement companies and looking for a reputable one. I found Consumer Recovery Network and they seemed the most honest with no upfront fees except their program registration. Fees come after settlement. The biggest hurdle I can’t get past now is actually stopping to make payments on the 8 accounts I have. I’ve been doing it so long, I’m scared of the default rates, penalties, fees, and overage charges. I guess I should just bite the bullet and do it? I make too much in NJ for bankruptcy and would like to avoid that altogether.

Jerry”

Dear Jerry,

I had the following questions that I’d like for you to answer before I can answer your question. Please post your answers in the comments section of your question. I’m looking forward to helping you for free.

Have you considered a Chapter 13 bankruptcy?
Do you want to avoid bankruptcy at all costs even if the debt settlement approach will trash your credit, leave you with a tax liability and put you into collections?
How much cash do you have on hand to settle your debts? You are going to need about $75,000.
Are you prepared to be sued by creditors if you pursue the debt settlement route?
What is the goal you are trying to achieve? Are you trying to pay less than you owe or get out of debt?
Have you met with a NJ bankruptcy attorney face-to-face?

As soon as you can post the answers to my questions above I’ll be able to help.

If any reader wants to offer advice in the comments section please feel free to participate.