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Credit counseling and debt relief programs can work, but it sounds as if your income level is a bit low, unfortunately.
On $60,000.00 worth of debt, it would be hard to pay that off with all the interest and fees added in.
In addition, many debt relief agencies are scams and end up charging you a ton of money and you do not get any real benefit.
In fact, a recent study was conducted and only 1 out of every 10 people ended up getting their debts cleared up through a debt relief agency.
Bankruptcy may be the best way to go depending upon the value of the land and how the Trust was set up.
You do not "own" the land, but rather are a beneficiary of a trust, so it may work out to your benefit somewhat.
What do you think the land is worth?
Before RE collapse and recession it was valued at $4000 an acre or $240,000.
Now maybe half that.
Ok, Bankruptcy could be your best option.
There are two BKs, Ch 7 and Ch 13.
In a Ch 13 they do not take or make you sell land, but rather set you up on a payment plan to pay back some of your debt.
Without reviewing your Trust documents it is hard to completely advise you.
Does the process reduce the amount of debt?
I would avoid debt relief companies
That seems to be the sense I am getting.
Yes in a Ch 13, lets say they have you pay $200 a month for 3 years, or $7,200.00. The remaining money would all be erased.
I advise getting your trust documents together and setting up a free consultation with an attorney
It wont cost you anything and they can look at the Trust info and advise you
What about Chap 7?
There is a good chance you can even do a Ch 7 and walk away from it all.
Without impacting the land in Chap 7?
It all depends on the Trust and whether it is irrevocable and other aspects.
OK sounds like I need to set up an appointment with an attorney.
Thank you for your help and advice.
So that is why a free consult would help, because reading your trust docs would help a local attorney decide which is best for you
Ch 7 vs. Ch 13
Either way you can save alot of money, stress, and walk away from most, if not all of your debts
If you have further questions, please let me know!
Have a great week!!!
Here is some info:
he irrevocable trust may provide asset protection even in the face of a Chapter 7 bankruptcy. In an irrevocable trust, the settlor cannot be both trustee and beneficiary and the assets are no longer in the settlor's control. This removes them from the creditor's reach. However, if the debtor creates the irrevocable trust for the purpose of hiding assets or otherwise defrauding creditors, the court may still subject the assets to the bankruptcy proceedings. It is critical that a debtor speak to an attorney and seek legal representation when deciding how to proceed.
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