confused
i have done my homework, i know the options and will accept the consequences either way. I have spoke to 2 trustees – both of which explained the same thing and can not advise me as I am not being “forced” into this.
I really want to make the SMART decision for my future as I am now 30 and have nothing but debt.
I am not looking for moral guidance as either solution has it’s own burden to bare. Would you please advise me as to what is the “smart” solution?
is it financially better to file and save money or is it better to pay and have better credit?
This is a difficult decision without any of your specific details. I always approach this question based on time frame for full recovery. I analyze approximately how long, at current repayment levels it will take to satisfy all debts if full and compare that to the entire time required to complete a bankruptcy or proposal & fully rebuild credit history and then I choose the shortest route. You have to be careful to base this on a worst case scenario (i.e. do not include overtime; make sure you have identified all the costs of living, including irregular and big ticket items), if you are just barely managing to make payments in the best of time, then I would suggest you are better to look at the bankruptcy or proposal.
Often when I meet with someone asking this type of question it suggests that a proposal may be the most prudent course of action. It contains a nice mix of providing more money to creditors, but giving you the ability to make the debt loan more manageable and potentially even save some money during the process.