For a number of reasons, filing a Bankruptcy is better than working with debt consolidation companies:
1) It is far less costly to file a Bankruptcy.
2) With debt consolidation, in most cases, there will be at least one creditor who refused to participate, so you will still owe all the money to that creditor.
3) Many debt consolidation companies are not legitimate, and do nothing for the debtor, and it is not possible to know in advance whether you are dealing with one of the legitimate ones.
4) Participating in debt consolidation has a similar negative effect on one's credit score as filing a Bankruptcy.
5) With a Bankruptcy, debts are discharged within 6 months. Debt consolidation can take years.
6) Bankruptcy is far less costly because you pay nothing to have your debts discharged. With debt consolidation, you have to pay for years.
Is chapter 7 perferable to chapter 13, or vice versa? And what if I simply stop paying on the cards and negotiate with the companies myself? Is that something that can be done? My credit is pretty shot anyway. Your ideas? don
Do you own the LLC?
If yes, are you the sole owner?
Since you are not the only owner, only your ownership interest - not the LLC's assets - would be subject to the Bankruptcy estate. This means that if, and only if, your ownership interest can be sold, then the Bankruptcy trustee can sell your ownership interest to pay your creditors.
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