As I write this, I am up to my ass in debt. I pay $6,000 per month in debt and receive $7,200. I have a single job as a programmer with a linear income and I’m trying to deal with an exponentially growing debt.
Why Bankruptcy is a Horrible Solution
Tyler was kind enough to articulate why you do NOT want to file a BK:
- All your financial info becomes public.
- Must sign affidavit
- In bankruptcy court, you must testify against yourself (that’s right: you sacrifice your 5th amendment right to never testify against yourself).
- Must list all assets. Put all property up for liquidation except what is exempt.
- You are Committing perjury if they determine you hid something… even if it turns out you happened to forget something. Some go to jail for bankruptcy fraud: 1 to 5 years. In hands of judge.
- In one of the two types of bankruptcy, you pay a fraction of what you owe to the BK trustee for years after declaring BK.
Why Debt Validation Is Not a Good Option
It doesn’t work to close the debt and leads to you landing in court. Taansen Fairmont’s Liberty Debt Elimination System is based around this. And the story of Keiki Fujita gives you an idea of how error-prone that is. She lost in court to Bank of America because she didnt get paperwork in on time. And she had to go to settlement meetings. And she had to pay an attorney consulting fees for all of this and I dont imagine she was pro se in court either. So what was supposedly a cheap system turned out to be expensive in more ways than one.
Why Secured Party Creditor Debt Discharge rocks:
- No court!
- Maybe will sue: can settle or discharge lawsuit without ever going to court.
- No confession of holdings
- No one has ever gotten in trouble for it
- Just going to post office, never to court.
They have glowing testimonials from the UCL debt discharge process.
What are the drawbacks?
The drawbacks are that for a few years you will need to respond in a timely fashion to debt collectors, either the initial pretender-lender or to new debt collectors who buy the debt.
So what about settling the debt?
With settlement, the deal is done: no harrassment, no selling the debt. Just settle and done.