You could promise a good payment to each creditor

I am glad to see your reply 🙂 and glad I could help you in some small way.

I would definitely go the deferment route if you can for now; with a bonus coming, you could promise a good payment to each creditor to help get things back on track and they may be more willing to defer things for now (make sure you ask for a reduction in interest during the deferment period since you have a lump sum payment ability coming).

I agree with your assessment on the lawsuit; how likely is it to settle soon and in your favor however is another question and one best addressed to your attorney; and since you have an attorney for this lawsuit they may be the one to discuss the financial options with as well 😉 Each state’s laws a just enough different to make it interesting and confusing, it’s always wise to check what’s possible in your state 😉

As far as the allotment goes; I agree it should be based on percentage vs. flat to each creditor; but I think asking for a deferment might do you more good under these circumstances.

You may not have any option but bankruptcy. However, if you are SURE you will receive a large settlement from a lawsuit in December, you should be able to “stall” your creditors long enough to receive the settlement and pay everything off in full. Yes, they may turn you over to a collection agency but if you are able to pay off the accounts in full it won’t be too much of a black mark on your credit history.

Another possible option regarding the settlement: check with your lawyer but can your creditors file a claim on the settlement? Not sure about the legal terms but does that make sense? Good luck with your situation. I started out over 30K in debt and did almost all the things Debs suggested: sold my house, took a better job, sold a bunch of stuff (aka CRAP!) that I didn’t need, etc. I did make the mistake of hooking up with a Debt Settlement company but ended up working with a very good Debt Management Program, they have been a big help.

I appreciated your honesty

I appreciated your honesty. The tone of your post was positive even though what you had to say doesn’t leave many options which of course is NOT your fault. It’s mine for getting so far in debt.

If the 3rd legal issue is resolved that would completely wipe out my debt and allow us to get back on track. This action has been pending since 2013 so I am hoping that it will be resolved by December.

Combine that with the bonus I should receive in February and I will be just fine. We had filed for bankruptcy and then changed our mind thinking (hoping) that the money from the lawsuit would come in before we had to do that.

We completely revamped the budget and just yesterday I cut down some of our expenses even more. It’s funny how you have some things that you thought were necessary to survive and they really aren’t.

Which brings me back to the question about the allotment sheet. If that would hold off some creditors until my legal issue is resolved then that would be great. I know that I would have to work hard to repair the damage but I would feel better doing that then filing bankruptcy. If we filed for bankruptcy and then when I received the proceeds from the lawsuit and my bonus they would be completely be taken from me to pay my creditors. Understandable but my credit would still have BANKRUPTCY written all over it and I just think that looks worse. May be my misperception though.

So again thanks for the post. Your approach was what I was looking for in the blog. The previous post left me feeling stupid for joining.

Thanks and have a great day.