I think ChatGPT lied to me

[Otter35]

I’m glad you were able to get a much better payment confirmed.
Yes, I understand that asking for a narrow estimate is probably asking a lot but in the same respect if these lawyers deal with the same trustees and judges every single day every single week then I don’t think it’s an outrageous ask to get at least a yes or no on if I can be around a payment that I can actually afford. I don’t trust people and I especially don’t trust people who can’t give me an estimate until I give them thousands of dollars.
I don’t NEED to file for bankruptcy but it would be the best thing for me to do. I’m sure plenty of people out there move forward because it’s their only option and they just hope for the best. I would be really pissed if I paid thousands of dollars for them to tell me that I either pay what I can’t afford or go kick rocks. Sounds like a helpless situation

[shipo]

Each bankruptcy, especially a Chapter 13, is heavily nuanced. There is no one such boilerplate solution. My bankruptcy attorney, who retired shortly after my discharge in 2020, had been doing it for over 40 years and knew the Trustee well. Even with that level of familiarity, she had to put a LOT of work into the design of my filing, and the money I paid her was well worth it.

[Otter35]

So I randomly looked through my credit report today and found that my total debt is not as high as I thought
Credit Cards- 187k
Personal Loans- 30k
Back Taxes- 57k of which 12k is priority

its not night and day better but I thought I was around 310k in debt, and that’s the number I was giving to the attorneys I spoke with
Looks like 2500 a month might be more realistic now.

[Otter35]

So after doing more research I’ve 100% decided to settle my own debt for 15-25%
The reason I’m so confident about those numbers is because I found out that I am “judgment proof”
I live in PA which means no wage garnishment, I own no assets, and I’m putting all my money into a joint TBE account with my wife which means no bank levy. I am going to pay them off via settlement but I will drive the negotiations not them.

[justbroke]

If you're judgment proof (technically "collection" proof), then why even settle? Especially if there is no wage garnishment. Are you trying to restore your credit?

[Otter35]

If you're judgment proof (technically "collection" proof), then why even settle? Especially if there is no wage garnishment. Are you trying to restore your credit?

Because it’s not a status that I want to live in forever. It’s a means to an end. I’d rather settle for 25% and start rebuilding my credit than hoard my cash and live with a 500 score for 7 years

[justbroke]

Because it’s not a status that I want to live in forever. It’s a means to an end. I’d rather settle for 25% and start rebuilding my credit than hoard my cash and live with a 500 score for 7 years

Okay. I was wondering because some that are collection proof may just ride it out.

[Otter35]

Okay. I was wondering because some that are collection proof may just ride it out.

No I not only want to get my credit back but I obviously feel that I owe them at least something. I don’t believe in free lunches and although I will be paying them back a fraction of my debt at least I can say I settled my debts. It’s a psychologically satisfying feeling I’m sure.

[justbroke]

No I not only want to get my credit back but I obviously feel that I owe them at least something. I don’t believe in free lunches and although I will be paying them back a fraction of my debt at least I can say I settled my debts. It’s a psychologically satisfying feeling I’m sure.

Yes, for most it's the feeling of at least trying to pay back debt. Plus I do agree that not having that dark shadow lurking in the corner can be off-putting at times.