Home Equity Loan

I am considering pros and cons on debt consolidation through ccc services or filing ch 13?

The payments would be more than what i pay out now for keeping up my credit but have 6 accounts in collection status. I have a new car, i may have to give that back to make payments to ccc services thus getting a repro on my record. Chapter 13 appears on my record for 7 years but i could manage to keep the car and i worry about problems down the road keeping up with the plan. The lawyer says he does not know at this point whether the plan will be 3yr or 5 until he looks at my total situation in more depth. Its a close call between the two. Chapter 7 is out because i dont want to risk losing my home due to equity accumulation.

Public Comments

1. First of all have you thought about refinancing your mortgage? This might help depending on your situation. Add up all of your interest rates. All bills, including mort. Anything that you pay monthly. If that % is way high then you should consider refinancing your mortgage and consolidate all the bills, and right now would be a good time cause the rates are way low. If this is not a possibility then I would go with the chapter 13. We did. We didn't want to but I'm finding that the most that is happening is that when we went to buy another house our interest rate was a little higher. I think maybe 3-5 higher. Not sure. But so far that is the only thing that it blocked. If you have no intention of moving and refinancing is not practical then I would go with the chapter 13. None of the creditors can touch you after that except the car and the house. Double check with the lawyer but I'm pretty sure this is what we were told. We filed in 2004. We bought a house in 2005. Nobody has bothered us since. We too had a van that was fairly new. That got repoed but it was because the payments got screwed up. I was glad to be rid of it. But as far as I know it hasn't really messed us up much. I could be wrong with the repo thing but we haven't made any major purchases since that happened. Good luck. We tried to make good with the creditors but they wouldn't budge. They wanted what they wanted. So in the end they got screwed out of the money. Too bad for them cause we really did intent to pay all of them back.
2. Bankruptcy is an absolute last resort and if you can possibly avoid this route do so. There are alternatives and it will be in your best interest to research all the options. There's a website here which has a lot of information which may help you. Good luck, I hope you find a solution.