What is better bankrupcy or paying collection agencies back slowly?
August 142009
Hi there, I’m so in debt that it’s absolutely impossible for me to pay back my debt…on one of my cards the interest is 25.99%…
The interest and minimum payments alone are nearly $1000 per month.
For health reasons there is no way ever I could find the money to pay this now.
The problem I have is that the credit card companies will not negotiate a payment plan until the account is closed…and then goes to collections…
What is better, having the accounts closed for non payment ( bad for credit of course…) and do some small payments let’s say $200 a month or plainly go bankrupt?
If I DO respect the alternate paying arrangements but I have 2 collection agencies after me and let’s say that in a year I have half of my debt payed off, would that be ok, I mean not bad and better than full bore bankrupcy?
Thanks,
Make an appointment with a Credit Counsellor. They can usually consolidate all your debts/cards, and help you work out a payment plan that is good for you. They can usually also work out a partial payment such as : you owe XX amount - the company is willing to accept X amount.
Don’t put it off any longer. Make an appointment ASAP. Half of your worry will be the stress that the debts are causing you.
Once you and the counsellor have a payment plan in motion, the collection companies have to back off. Any payment plan that you and your counsellor work out with your creditors will cancel out any right that the collection agencies have to contact you. It has effectively been removed from the "bad debt" list and is being dealt with.
Bankruptcy is always the last resort.
August 14th, 2009 at 10:47 pm
Do the bankruptcy. Otherwise, youll never get out from under, and never have a chance at a fresh start. Plus, collection agencies calling you for years when youre already paying them can be very stressful, and you already have health issues. If you file bankruptcy, you can start getting new credit within a year if you play your cards right.
References :
I filed bankruptcy 4 years ago
August 14th, 2009 at 11:36 pm
pay off the creditors going bankrupt will ruin your credit for years dont think about getting a loan, mortgage, or credit card, the interest rates will be sky high. Keep your morals you know the right thing to do is pay back the money whether it be a few years for you to do it its the right thing to do.
References :
August 15th, 2009 at 12:16 am
Make an appointment with a Credit Counsellor. They can usually consolidate all your debts/cards, and help you work out a payment plan that is good for you. They can usually also work out a partial payment such as : you owe XX amount - the company is willing to accept X amount.
Don’t put it off any longer. Make an appointment ASAP. Half of your worry will be the stress that the debts are causing you.
Once you and the counsellor have a payment plan in motion, the collection companies have to back off. Any payment plan that you and your counsellor work out with your creditors will cancel out any right that the collection agencies have to contact you. It has effectively been removed from the "bad debt" list and is being dealt with.
Bankruptcy is always the last resort.
References :