Q: Is it better to file a chapter 13 bankruptcy or try to pay off the accumulated debt? William
A: Depends. Consult a bankruptcy lawyer who can review your entire financial situation and then make a recommendation!
Lynn Ellen Coleman agrees with this answer
A: This is too individually dependent on the facts to be able to answer such a general question with certainty. One thing I can say is that if you settle, you may have to pay taxes on the amount of forgiven debt. Debt discharged in bankruptcy is not taxable. Chapter 13 bankruptcy also involves added costs. You need to have a personal consultation with an attorney. Many offer free consultations.
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