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I have a 80/20 arm mortgage scheduled to go up in november. I cant refinance because we are in so much debt. Do you suggest bankrupcy over debt settlement. Im currently in a ccc program that I cant afford.

Hello. Unfortunately I do not think debt settlement will be an option for you. As I am sure you know, it cannot assist you with secured debts like your mortgage and so it depends on how much lower you need the payments to be on your unsecured debts in order to afford the upcomming increase in your mortgage.

In general, your payments in a debt settlement program would decrease over what your payments are with the credit counseling agency you are with now. Could you afford a payment that was reduced by 25-40% and still handle your mortgage increase, for example?

If that sounds somewhat doable then maybe you should get a debt settlement quote before deciding on bankruptcy but that’s a decision you need to make. The other thing to consider is the possibility of your mortgage resetting yet again in another year, will that just put you in another bind like you are in now?

These are all questions to consider and I suggest you speak to a professional who knows your situation much better than I do (you can start by speaking about this with your credit counseling agency).

I hope that helps.