Several cards are offering me settlements that are 50% or even less of the total amount. Some of the creditors will let me pay that over a period of 6 months. I’d like to do it. But it will still be more than I can afford to pay each month. I’ve been thinking I need to file bankruptcy. Should I try to pay off using these settlements, even if I know it’s a big stretch for me to try to do so?
I don’t have any money that the creditors can really sue for or come after. I think they know it. So, it might be fine to draw this out over a long time and try to pay back. I’ve defaulted on 3 cards, but not on 2 others. I was going to let those other 2 default and file BK. But it’s so hard to make that decision to file BK.
If I file BK it’ll all be over sooner (3 months, as opposed to at least 6 to pay off creditors) and I can get started on a better credit rating sooner. But it’s very tempting to just try to pay off debts and be good.
How late are you with the cards and they with CC companies? pull you credit history see the statue of limitations on all the cards and then look up for your state the statue of limitations in your state. depending on your credit report you might be already in charge off.
Here’s my situation:
- I have 2-3 credit cards that have been charged off.
- I have 2 more that will charge off very soon. One of them is offering me a settlement of 20%!!! That’s about $1400. This is a major bank where I do all my banking. Will it make a difference in my future to take care of my accounts with them even if my other creditors and my credit rating are bad?
The other one may settle but it will be a lot ($6000?)so that will probably just charge off, too.
- Is it worth it to settle? My credit report will look terrible for 7- 10 years. Is it less terrible if I take 6 months to settle one account, and the others are charged off? Or, less terrible to file for BK?
- Filing for BK means that in 3 months the clock will start ticking on the 7-10 years. If I settle, it’ll be another 6 months.
- I have other debts too ($1000 to a medical clinic, for example).
- BK costs about $1400, so will be less expensive than paying off some of these others.
I think the answer is BK, but I just didn’t want to have to go that route. Does that make sense?
National Public Radio, did a program on bankruptcy last week. I am sure there is a transcript of the show at their site. If you do a search I am sure you can find it. It may help you make a decision.