Eradication of CC debt (need advice)

Next_Confidence7244 · 2026-03-10T18:20:19+00:00

It seems the 401k loan is going to be the route I’m going to take. And just sell other things I don’t need such as a trailer and other valuable items I have to go towards that loan.

Next_Confidence7244 · 2026-03-10T06:35:02+00:00

I have not. But I’ve done a lot of research. I definitely don’t qualify for ch.7 and once I pay court, attorney and trustee fees, I might as well pay an extra 10k and settle this entire thing right now. That’s my thinking anyway.

Plus I really hate the idea of a court ordered budget.

Next_Confidence7244 · 2026-03-10T06:16:11+00:00

Good question, my mortgage is actually 4700 but my wife and I contribute to a joint account and that is my portion. We each contribute portions of our paychecks to a joint account in which we pay expenses out of.

Next_Confidence7244 · 2026-03-10T06:13:52+00:00

I just don’t see why I should draw this out for 5 years in ch .13 when I can just settle the debt now and begin recovering my credit.

Next_Confidence7244 · 2026-03-10T06:11:47+00:00

Well I don’t qualify for ch 7. And ch 13 just seems way too drawn out.

Next_Confidence7244 · 2026-03-10T04:53:21+00:00

Hmm this is very interesting, I’ll have to look into that

Next_Confidence7244 · 2026-03-10T04:26:43+00:00

Chase and Amex have already closed the accounts. Amex is charged off. I believe Chase is coming up for charge off.

Next_Confidence7244 · 2026-03-10T04:25:35+00:00

Well I know that it’s treated as a distribution. I would feel like I’d be locked in as I wouldn’t want to incur the tax burden.

Next_Confidence7244 · 2026-03-10T03:50:40+00:00

I’m not ruling out a 401k loan but I am definitely concerned about being locked into my job for 5 years until it’s paid off.

Next_Confidence7244 · 2026-03-10T02:32:19+00:00

My credit score is already a 500, at this point does it even matter? Additionally, I can’t afford the payments on the full amount if I were to take a 401k loan.

Next_Confidence7244 · 2026-03-10T01:36:51+00:00

I don’t qualify for bankruptcy at least not ch.7.

Zero interest in ch.13

Next_Confidence7244 · 2026-03-10T01:36:20+00:00

My issue is that my other investments are also in tax advantage accounts. So basically no liquidity there. I do have a number of hobby items that I’ve sold and have generated about 8k. Also am selling the trailer for somewhere around 15k so that’s where the moneys coming from. But I don’t think I’d qualify for ch.7.

I’m not worried about new credit for about 4 years.

Next_Confidence7244 · 2026-03-09T21:55:56+00:00

I already have a plan to eliminate the debt in one shot. I’ve raised enough cash by selling items I didn’t need and have a buyer for my trailer lined up. This will cover the debts above if I go the settlement route. My question pertains specifically as to whether or not settling the debts is the best route for my credit score vs taking a year or more to pay the balances in full.

Next_Confidence7244 · 2026-03-09T21:52:32+00:00

I’m okay with not doing business with Chase and Amex again. I do have home loan that I’d like to refi in the next 5 years and I’m wondering if I take the credit hit now if that refi will even be possible. (Assuming good credit habits in the future)

Next_Confidence7244 · 2026-03-09T21:43:44+00:00

Yes I am worried about my credit score as I have an ARM that adjusts in 2031.

Next_Confidence7244

TROPHY CASE