Debt Management with Novadebt or Chapter 13 Bankruptcy?
I have $ 90,000 in unsecured credit and have reached a point where I must either file Chapter 13 Bankruptcy (I don’t qualify for Chapter 7) or work with a Debt Management Company. Either way, I will have to pay 100% of debts, but both seem to give me the same benefit of freezing my interest rates and allow my to pay the debt in 5 years.
If NovaDebt is telling me the whole truth (haven’t seen a contract yet) then they will be able to save my credit rating. Does anyone know if this is really true? If not, then I feel safer filing for bankruptcy because that is where I would end up if I couldn’t meet the NovaDebt payments for some reason. I saw a antoher post that said my Credit Report will show I am in a Debt Management Program, but that would be removed once the plan is complete.
All my searches on the internet seem to indicate that NovaDebt is legitimate; does anyone have info on the contrary?
As far as monthly payments go it apprears that my NovaDebt payment will be about $ 200 more a month than bankrupcty payments. I am not too concerned about the extra $ 200 a month, but just want to make sure I am starting in the right direction if I will be paying more. As far as fees; NovaDebt says they charge $ 50 a month for this service – in the end that is actually $ 500 less than filing for Bankruptcy.
Any experiences, thoughts, or ideas are very welcome. I need to make a decision this weekend – yikes!