A reader wants to know if he should do debt settlements or file bankruptcy.
Dear Leon,Should I do debt settlements or file bankruptcy? I might even be able to borrow enough money from family to pay most of what I owe. I owe $40,000 in credit card debts, and I barely manage to pay the minimum due each month. But it’s killing me. I make $42,000 per year. I have no valuable assets. I am planning to get married soon. I don’t want my fiance to get burned if I bring my debt burden into the marriage. My parents have offered to give me enough money to pay off half my debts. My fiancee’s parents have offered to loan me enough money to pay off the other half. They feel it is wrong to file bankruptcy. Please tell me what to do.Sincerely,Josh
If you were given the choice, would you do debt settlements or file bankruptcy?
It’s a tough choice. There is no absolute answer that is right for everyone.
One more thing. Here is what the Federal government says about going to debt settlement companies:
Warning: Dealing with debt settlement companies can be risky. Some debt settlement companies promise more than they can deliver. Some of your creditors may also refuse to work with the debt settlement company you choose. In many cases, the debt settlement company will be unable to settle all of your debts.