Like many here I'm in a bind. I have around 105K in debt with 10 different creditors. Amex, Citi bank (2), discover, Lending Club, wells fargo, amazon, paypal, home depot and a local credit union. A few are less than 3k. I'm in Utah, single dad with my daughter 100% of the time. Home owner, 19 year old vehicle paid off. Not behind on anything.
I called a lawyer and found out I make too much for Ch7. I also found out in Ch13 all my discretionary income goes toward my debt for 5 years, then the rest is dismissed. Problem is, right now all my discretionary money except for a couple hundred dollars goes toward debt payments. I'm little short every month after buying food. So if I do a Ch13, I will have everything paid off in less than 5 years based on my left over money after paying living expenses. The only thing that saves me interest, which is a lot Maybe around 800-1000 a month. If I Ch13, I'll have paid everything off and still have it on my credit.
After seeing this site, I considered halting payments and try to negotiate with the cc companies. I could have almost 15k saved in 6 months. This site suggests that there is quite a period of time before it goes to collections. However, I'm reading that a lot of people are going to collections after 90 days and a good amount are being sued. I get the concept of stopping the payment and trying to settle on my own. Maybe this is the best way and if it gets out of hand, then Ch13?
Very frustrating. I've worked hard to never miss a payment ever. I have a feeling I'm about 3 months away from not having enough to cover everything. Right now, I have no hope of paying things off. I can't hardly stay ahead of the interest. I'm to the point where bk or settlement, I feel, is my only hope to get out from under this. I would even be happy if I could get someone to give me a 100k loan for 6-8 years so I could pay off the debt and not be killed in interest.