I need your advice. I have been reading a lot of your discussions on here and have found a wealth of information. Here is my situation: I own a home that I have stayed current on my mortgage, I have no car payment, but I have approx. $43,000 in debt to credit cards. I have not made a payment on these credit cards for 90 days. I know my Credit Report score is somewhere in the neighborhood of 490-510. I was about to file chapter 13 bankruptcy, but after reading many of the thngs on here, I am now wondering if I should try to get the creditors to take a lesser amt as a payoff and have it deleted or paid in full to on my credit report. Can these cc co. put garnishments on my wages? There are 9 different credit cards with 3 of them in excess of 10,000. The 3 large amts are from : Direct Merchants Bank, First North American Bank and American Express. All the others are $5,000 or less. Anyone please advice.
If your credit scores are over 500, and the value of your house is enough to where you could borrow only 75% of it to get out of debt, or at least mostly out of debt, the a refinance will be no problem and is definatly the way to go.
I already tried calling the bank where I have the house loan through, but they said my credit scores were too much of a risk and would not refinance or do an equity line either. Also I am self employed and that my income was a part of that equation. They said I didn't make enough to do the refinance.
