Advice needed

[mbn65]

So my business started bleeding money to the tunes of being 100k in credit card debt.

I am looking to negotiate debt settlements with my creditors but before I take this extreme step, I want to see if I could somehow recover.

My creditors have all offered some hardship programs in one way or another.

I plan on entering into 2-3 of them.

In the unlikely event that I will still end up having to settle, would those hardship programs hinder my chances at negotiating a settlement versus outright defaulting and wait the 3-6 months period to negotiate with them?

The reason I bring this up is because Chase told me their hardship program works slightly differently. It's a 5 year 0% APR program which is amazing, but if I miss one payment, the account will be charged off... so the timing seems much different than simply defaulting on a credit card where the charge off period won't happen till after 6 months?

[disneysteve]

So my business started bleeding money to the tunes of being 100k in credit card debt.

First question is have you stopped the bleeding? Have you fixed whatever happened to cause you to rack up all of that debt? Are you back in the black with the business currently?

[dczech09]

I second DisneySteve's questions.

Here is the deal with debt settlements...

They are only for people who do not have money. As a result, I think you're asking the wrong questions. What you should be asking yourself is "is this the right choice?"

Settlement is not an easy way out. It will destroy your credit, it will make it difficult to borrow again (at least in the immediate future), and it may require you to submit documentation that you are unable to pay. After all, your creditors may want to make sure you really are unable to pay. Even then, you may find yourself in legal mediation. I do not mean to scare you - just telling you what others will not tell you. $100,000 is not a small amount of money.

Will hardship programs harm your ability to settle? Probably not.

Hardship programs are meant to help people make good on their debt obligations without resorting to settlement. Your creditors do not want to settle with you, because settlement usually means that they take a loss. Sure, they get a nice tax deduction; but the deduction is no greater than any other expense.

Hardship programs are offered as a courtesy and as a means of helping you help them. Settlement, on the other hand, is a last resort for those without the money and without a feasible hardship program.

Your creditor will want to purse the hardship program first. That way, there is still a chance they make some money. If for some reason the hardship program does not help, then settlement may be an option down the road. A hardship program should not harm your settlement. In fact, it may actually help your settlement because the hardship program shows you are at least willing to try to make good on your obligations.

Hope this make sense!