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Debt consolidation

By Terry Savage on May 16, 2024 |

Hello my question was read on wgn , but i have 4 loans and used a debt consolidation program. Two accounts are paid off , one is 1 year away it was settled at $4000 instead of $7,500 and its 12 payments of $700. Another is going to start communicating with the loan to settle of less than the original loan of 20k so not sure the amount. Im in a divorce process and the loans are under her name and i should of done the debt consolidation when it started 2 years ago and my credit was ruined by my ex wife 2 years ago and ruined now

but i cant ask the judge or my attorney as we settled i have to pay this as we have to finish the divorce and cant afford to go to trial. My issue should i file for bankruptcy? Or pay the debt for the next two and half years. I have 3 kids and money is short at times and the debt consolidation has helped by pausing payments by a month or two. I just need some financial advice on how to help myself going forward.

Terry Says

Ah, that’s the danger of answering a question without all the facts. As I recall, I suggested you try to make the court enforce a payment by your spouse.  But if the legal process is over now, it’s too late.

And if your credit is already ruined, it may not make sense to keep paying on these bills. But bankruptcy is a BIG decision — and it has other impacts.  It could impact your search for a job, your ability to rent an apartment.  So you need individual counsel — not a firm that is trying to make money off you by settling your debts and earning a fee.

I suggest you immediately call 800-388-2227 –which will connect you to the nearest agency of the National Foundation for Credit Counseling.  You can trust their advice.  You need to show them all your financial information, and they can guide you as to whether bankruptcy is a better choice.  Please, please write back to me and tell me what they say.

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