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Settle or Hardship?


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I have been reading for hours and seem to have come to the conclusion I am an idiot!!! I have $40,000. in CC debt. I sold a company several years back and carried alot of paper. The company has closed and in default with me.

I have very little income at this time and at present I am not delinquent on my cc payments however thhis is about to spin out of control since there will be legal bills trying to recover any assets of the company.

My question to you IF I can come up with some cash to settle my cc debt how much shoild I expect them to come down? or since I have not been delinquent do I attempt a hardship agreement?

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I've done as little as 10% and as much as 55% (in retrospect that was D-U-M-B!).

Several lawyers I have talked to, say no more than 30% in this economy and unsecured creditors, in a general sense, are ready to deal (mainly because most of them got a government bailout.)

When the creditor is faced with write off and selling it off, at best, to JDB's for 10%, 30% looks pretty good to them.

You should be able to knock it out for $12,000.

Some say this is unethical, but if you BK them, they may get nothing. So you are at least attempting to repay some of it and resolve it.

You were probably doing something like me, you started a business, probably provided jobs to the economy, sold the busines off, and circumstance just didn't work out. (some of which may have been out of our control). Millions of consumers are wiping these cards out to ZERO on the $ with BK as a result simple irresponsible spending and consumption.

Which circumstance is more or less ethical? I think it irrelevant as long as you grab hold and have strategies for dealing with it.

I too also carried paper on a sold businees and was defaulted on 4 years later by $140,000. I was carrying unsecured debt to fund it, so I had to default on that. I'm hoping to recover part of $140,000, but BK by the borrower may wipe the amount owed to me out.

Some may say what we did was "irresponsible investing", but at least others derived a benefit at our entrepreneurial attempts. In my case, I still have a viable business concern with 22 employees benefitting to this day. (although my wife would sometimes say "non-viable" when we can't pay ourselves)

So don't beat yourself up on it. Been there.

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