Advice for settlement 1/3 of the way into hardship prorgram

[whynotpizza]

Hi, hoping for some advice/suggestions on how to do a credit card payoff. I currently owe 48k to 3 credit cards.

 

Citi ~11000 Account closed at credit grantors's request

 

Chase ~14000 Account closed at credit grantor's request

 

BofA ~23000 Account closed at customer request

 

Debt is mainly from a failed business venture. My debt was initially 70000 but after negotiating with credit card companies I was able to enter into 60 month 0% interest payment plan with all credit cards, I have paid ~1200 every month for the past year and half. I am current on all payments

 

My current situation:

 

I have been underemployed for the past year making $1200 (before SS, etc.) a month working for a family member. My whole paycheck goes to make my CC payments and the difference plus my health insurance have been paid by my brother (former partner at failed business). He filed BK7 and got a new job.

 

I had to move back to parents home after failed business and do not have additional expenses but I would like to start paying them some amount for utilities, food, etc. and make some small purchases like clothes every once in a while. This is currently impossible since I have no money left over.

 

I "own" a 150k home and have a balance of 50k on that loan. I say "own" because the house is on my name but I purchased it 10 years ago, for a close relative who had no credit history with the intention of transfer it to him after he build up some credit. For all intents and purposes it is his house; he makes payments, repairs, etc. I have no involvement at all. But because of this house I could not do the BK7 when my debt was at 70k.

 

My brother was accepted to graduate school and will be unable to help me with health insurance payments (~300) starting in August.

 

I recently was able to get 4k from an accident settlement and parents will be able to loan me additional ~10k if I can settle at 30%.

 

What strategy would you recommend? I've read that its best to stop making payments for a few months before so they offer the payoff themselves. Would that still apply since I am already on a payment plan? Should I just call the credit card companies before I start defaulting informing them of the new situation and listen to their suggestions? I've read it's best not to contact them but if I am already in their hardship plan would that still apply? What happens when you default on their hardship plans? If I decide to start defaulting should I do it for all the credit cards at the same time or choose the one with the highest/lowest payment first? I think if would still have chapter 13 to fall back on but I rather not add 5 more years of payments (under my current plan I still have 3 ½ years to go). What kind of hit do the 60 month 0% interest payment plans have on credit score? Is it the same as doing a bankruptcy or settlement?

 

Thanks in advance for your suggestions