Well I finely decided to make my first post, here is my situation monthly income 10,000 and cc debts 125,000 and like an idiot 25,000 is from cash advances over the past 6 months for gambeling to try to win and pay off my visa (bad idea). I spoke with a atty. and he told me chapter 13 is the only way to go because my disposable income is 1,500 a month with a 5 year plan and a 90,000 payback, and I can keep my house. So even though the cash advances are questionable (fraud) because they were within the past 90 days it will not be a problem because I can prove my losses with a win loss statement and my payback of 90,000 is well above the cash advances. If anyone has any advice or has been in this situation before please give me some input I would really appriciate it.
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If I had the choice in your situation, I would look at negotiating with the lenders and settling the credit cards. Seems like with your income and paying back 90,000 out of 125,000 would be more expensive than settling and paying income tax on the forgiven debt.
Do a worksheet on your assets and liabilities to see if you are possibly insolvent, and there would be no income tax.
You would have to work the numbers both ways.
It is quite easy dealing with lenders these days with the possiblility of a settlement as low as 20 cents on the dollar.
It is not a hard process, just a lengthy one and takes perserverence. But, being under the thumb of a trustee for 5 yrs. is more lengthy.
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