I will have a TS PR next summer and I am currently considering Debt Settlement. I have, what I consider, a significant amount of unsecured debt right now. I am 100% on time and I believe that debt settlement requires me to be delinquent in order for the program to work so I would need to voluntarily stop making payments to become delinquent. The likelihood of having to indicate that I have been and am currently 90 days delinquent on the SF86 (should I choose debt settlement) has be concerned. I consulted with a bankruptcy attorney a couple years ago and was told that Chapter 7 was not an option for me and I could only set up a repayment plan under Chapter 13 and I would most likely be paying close to if not 100% of what is owed due to my income level (although I am living pay check to pay check right now). It looks like Debt Management might be a better option but that forces the closure of all credit accounts and I would have nothing for emergencies. Debt Settlement does not close accounts (at least not all and at the same time).
Another factor/question would be...are KMPs held to a higher standard during adjudication?