Debt Negotiation Advice

Bankruptcy vs debt settlement?

I have been trying to eliminate my credit card debt. I have managed to pay off 2 cards, I am currently working on a thrid, but I have 3 more with high balances, about 20,000. My husband wants me to file bankruptcy. Should I continue with the settlement or look into filing bankruptcy? Thanks

Public Comments

1. Avoid bankruptcy unless it's a last resort. In this day and age, you may still be responsible for debits you are hoping to eliminate; and the damage to your credit is a disaster for years.
2. I used a debt settlement company for 4 months. They took my money, didn't do anything they said they would, and refuse to refund my money. They never answered any of my questions. Just referred me to my contract. I am sure there are some legitimate companies out there but I am very leery of them now. My credit is now ruined and they have the money I would have used to pay my bills. If you do use a debt settlement company please be VERY careful in choosing who you go with. It sounds great when they first talk to you. But make sure they are willing to talk to you and keep you updated often. My husband is also telling me to file bankruptcy. They will probably delete this but the company was christian crossroads from Florida.
3. it will take years to get your credit rating back up either way; paying off the cards shows some favor on your report but not much; it lasts as long as a bankruptcy give or take one year; most new lenders will feel a little better knowing that you won't be able to refile for years once debts are dismissed. If they are joint debts, both will have to file or he will get stuck with the debt ; you will have to then have secured credit cards or higher interest rates for someone to take you on again; a home?? do you own one; most consultations are free, see a lawyer and then weigh your options; debt consolidation places are a sham; you can ask the credit card company what if anything can they do for you credit report wise ; find out everything and then make a wise choice; check on Suze Orman for additional advice via the library or book store. Also, bankruptcy laws have changed drastically, so you have to see if you can qualify for bankruptcy ; check with a lawyer who only does bankruptcy or is noted for bankruptcy as primary focus; again I would avoid the debt consolidation companies , it has been my experience with clients that they are worthless and another waste of money. Carrying large debt and behind in payments affects your credit rating; most people who are behind, their rating is shot already; you would think that payment carries weight but not really; all they see are you low scores and delinquencies for 7 years. Suze says it is better to pay your current accounts first; paying older ones first doesn't change rating much b/c they have been on there for a while.
4. Bankruptcy, be careful of your assets such as home or car?
5. There are some really good articles on bankruptcy on this link below. I found the answers to 3 questions I had and some other information I wasn't expecting too. Hope this helps.