To Settle, or Declare BK13 and Pay It All Back?

[Gettinout]

I've been flipping back and forth on this. I owe 23k on one card and 10k on another. They both are nearing 120 days past.

I only qualify for BK 13 therefore will have to repay all debts owed and still have damaged credit.

If I successfully settle the debts for 50-60% I will still have damaged credit but wont have as high a debt ratio, possibly improving my score.

I do have a few assets aside from my home I would be willing to sell to pay the settlements. Yes, I am aware of the 1099 issue.

I have tons of positive high balance references on my credit report. Before my financial trouble I was at nearly 800 on my credit reports. At this time I am at 509.

I am starting a business in conjunction with working full time to dig my way out but don't see much light nor many easy options.

Would anyone care to share their experienced opinions on my situation?

Thanks to all who participate on this board.

Gettinout

[cmwins]

I filed BK13, with a 100% payback. Found out, now that I have paid everyone back, that 100% means nothing!!! I had to do it to save my house! Now my credit is pretty screwed up.

If you agree to pay for less than the amount due, I would require a PFD. It is better not to have it on your credit than to have it show badly.

Hope this helps!

[Gettinout]

Thanks for the reply. I too question the logic of repaying all debt via BK 13 since my credit will be damaged anyway. If I can negotiate reasonable settlements I would be out less cash/assets and have bad credit also.

My question to those who are experienced is: What scenario might be the least harmful in the long run?

I'd really appreciate more input on this.

Thanks again,

Gettinout