I have a financial reorganization question.
I own a PLLC firm, and it operates in the red every year, due to my husband's income. I also have tax-free unearned income from a trust account that is managed by trustees
(I cannot access the principle.) I have 60K in personal credit card debt
. I am on the mortgage to the property where my business is located and have $80K in equity
. My husband and I jointly own (and owe) over $2 million in other properties (including our family home), but I amnot on any of the mortgages for this property (only the deed).
I have recently heard about collection companies buying bad debt from creditors for pennies on the dollar and settling the debt with the consumer for 10 -15% of the entire debt amount. I spoke with a TN lawyer recently, and after he explored my economic situation and suggested I try settling before I look at chapter 7
. He didn't like chapter 13
, which I can understand, and he said if both my husband and I were looking at reorganization, we would need to file chapter 11.
What do you think about the debt settlment idea? Is this feasible? What are the risks?