Trying to avoid BK.

[Argh!]

A friend of mine recommended a company that often pays to be on local news casts (can I mention them?) They are a debt consolation company.

Anyhow, isn't it possible to write your own letter that say,

Dear AMEX/Citi/BoA/etc...

I am on the edge of filing or BK, and trying to avoid it. Will you take $.15 on the dollar of what I owe you payable over 36 months? Take my offer or you get nothing in a Ch 7?

In these days of times does this actually work?

[soleprop]

i'm thinking no. the reason debt consolidation companies can get any sort of 'deal' out of your creditors is because they're affiliated with them and have a sort of 'business partner' relationship; the debt consolidation people have the volume of their customers to back up their requests for payment arrangements...you don't. also remember - all of your creditors are not required to participate in any repayment plans established by a credit counseling or debt consolidation agency. however they are required to participate in a repayment plan filed in a bankruptcy case.

i've successfully completed a program with a nonprofit counseling agency and was debt free for a few years afterwards - it was the right thing for my situation at the time because my debts were manageable with a little help.

i've also successfully filed a bankruptcy case - again - the right thing for my situation at the time because i was getting judgements and lawsuits, and my debts were not manageable with any amount of help i could find except through bankruptcy.

point is: you're right to look at all options and to avoid bankruptcy if it is feasible; but don't avoid it if it is the best thing for your current situation. it's a unique consideration for every one.

good luck.

[JRScott]

If you want to try to avoid bankruptcy and feel you might be able to do so I would recommend Dave Ramsey's Financial Peace University. It is a course written by Dave Ramsey that can help you learn budgeting and how to pay off debt. However it is not for everyone as it does involve hard work on your part. You could go to daveramsey.com to learn more about his program, might be a way to look up local classes.

I hadn't learned of Dave until after I had filed BK, if I'd had his program back in 2004/2005 I possibly could have avoided the bankruptcy altogether. I"m not sure I could have but I think it would have been possible.