Why not debt settlement?

[UpaCreekinCA]

If I could settle $40K worth of cc for $1,500 (attorney cost to file BK7), then I would settle.

Your credit is ruined either way, right?

Yup exactly. Actually if you have your debts cleared, your credit is probably going to look better. Banks know you can't file again for another 7 years so the chance of them actually collecting (auto loan or cc) is better provided you have a job with income.

[wonderingrov]

If I could settle $40K worth of cc for $1,500 (attorney cost to file BK7), then I would settle.

Your credit is ruined either way, right?

The only difference there (if you could settle for the $1,500) is that if you didn't file for bankruptcy, you would be responsible for paying taxes once you received the 1099 for the settlement.

[Sara1]

We tried debt settlement company,we was 5 times sued by creditors,settled 2 accounts and must paid taxes on forgiven debts.I wish we filled for BK sooner.