Settlements with Credit Card Companies vs. Filing Chapter 7

[KKB]

I am considering filing chater 7, but am looking at all my options first. I have $65,000 in unsecured credit card debt. I have tried to talk with them on taking a lower settlement, but they are not willing to negotiate with me. If you want to negotiate lower payoffs with your cc cmpanies, what would be the best steps to follow? At what time after not paying will the cc companies be willing to work with you. Is there any chance of the cc companies willing to work with a lower payoff & should an attorney be used for this? Any & all information would be helpful!

[tinroofrusted]

Tell them they can either settle or accept your bankruptcy petition.

That usually gives them the kick in the butt that they need.

[spiderman]

Unless you have a LARGE lump sum to offer, you will not get much interest for negotiations from the CC companies. Before I filed I tried and tried to get them (CC's) to accept a payment plan that I thought that I could afford but they just would not listen (or care) to me.

[shardena]

answer

I have worked in the collection field for over 5 years. Your best bet is to file a chapter 7. The company will settle with you and still put on your credit report that it was settled for less than balance due. Which will still damage your credit significantly. File a chapter 7 and get a fresh start. Maybe keep the card that you have had the longest and with the least amount to pay off, so you will already have an established trade line after bankruptcy discharges.


I pray everything goes well.

[HRx]

I am considering filing chater 7, but am looking at all my options first. I have $65,000 in unsecured credit card debt. I have tried to talk with them on taking a lower settlement, but they are not willing to negotiate with me. If you want to negotiate lower payoffs with your cc cmpanies, what would be the best steps to follow? At what time after not paying will the cc companies be willing to work with you. Is there any chance of the cc companies willing to work with a lower payoff & should an attorney be used for this? Any & all information would be helpful!

If your debt to income ratio is completely out of wack, dont even bother trying to settle with the creditors, most often you'll have to settle on thier terms anyhow. Discuss with your attorney is your case is appropriate for a Chp7.

Good Luck!