I am considering filing for bankruptcy because of  my unsecured credit card .  I looked at the credit option, but the payment they requested was much more than I could afford.  I have seen the sites advertising /negotiation.  I was wondering if that is a viable option before I file?  Has anyone had any experience in that area?

<turk@comcast.net- wrote in news <- - I am considering filing for bankruptcy because of  my credit card .  I - looked at the credit option, but the payment they requested was - much more than I could afford.  I have seen the sites advertising - /negotiation.  I was wondering if that is a viable option before I - file?  Has anyone had any experience in that area? /negotiation is the same as you calling to ask for a settlement.  Some say you can do it yourself, which in theory you can.  Problem is, the companies don't want to work with you and don't believe you, otherwise everyone would call and get a payoff at a lower amount.  The question is, when you get a payoff for all of them, how are you going to pay it?

Some companies have a good policy, want to see your divorce decree or proof of what ever put you in the position you are in, and they will work with you.  However, all of them must work with you otherwise you aren't getting anywhere.  IF you have a settlement offer it must be via mail or fax or some means protecting you against mail and wire fraud.  In the past, The Associates, which was purchased by CitiFinancial, offered settlements but never gave the customer enough in writing to protect the customer.  Then CitiFinancial went after the customer for the balance due.  First Card - same way, just trying to get a big payment out of you.  Protect yourself at all times if you play in the settlement//negotiation game.  It is not for amateurs.  You are warned.

Regarding management, it depends on with whom you have . Some companies won't play. Some agree to the terms and payments and continue to charge you late fees and maximum interest.  Some continue to report you as late on your credit report.  Watch our for Household, Providian, Sears, Firestone/Credit First among others.  As with anything, 10 percent are predators and ruin it for everyone else.  The credit counselor wants your business, but can tell you which companies cause a problem if they want to be honest with you.

There is a difference between for-profit and non-profit management as well.

Before deciding, you should talk to one or more attorneys to find out what your options are.  Many bankruptcy attorneys will give you a free initial consultation.  As far as web sites that advertise /negotion, I'd say don't waste your time or money.  You can even try negotiating on your own with your creditors, but that doesn't work either.  Like someone else here said, they just won't believe your story and won't accept a low payoff.  And, if you do file for bankruptcy, you can't have made a special deal with individual creditors shortly before you file -- I think it's called preferential payments, or something like that.  If you have a friend or relative that you DO want to pay back without paying other creditors, you can always pay them back after the bankruptcy is completed.  Even though you get their discharged in bankruptcy, there is nothing to stop you from repaying them anyway -- AFTER the bankruptcy is completed.

I am not a lawyer, so these are just my personal thoughts and ideas from my own reading, etc.  You really should talk with a lawyer about your specific situation.  That's what they are in business for, so they're glad to talk with you.

Good luck.

<turk@comcast.net- wrote in news

- I am considering filing for bankruptcy because of  my credit card .  I - looked at the credit option, but the payment they requested was - much more than I could afford.  I have seen the sites advertising - /negotiation.  I was wondering if that is a viable option before I - file?  Has anyone had any experience in that area?

If you already beent o credit , and the payments are exceed your ability to pay, then there are very few options left What type of assets do you have? If you have access to some money, then you might be able to neogociate a settlement with some creditors. However, not all of them will deal.

I'll be honest, if you can't pay credit payments, then you probably have no assets or cash flow. Either increase your income by getting another paycheck to deal with this or talk to an attorney Just don't sit on the debts. ~Cata

<turk@comcast.net- wrote in news <- - I am considering filing for bankruptcy because of  my credit card .  I - looked at the credit option, but the payment they requested was - much more than I could afford.  I have seen the sites advertising - /negotiation.  I was wondering if that is a viable option before I - file?  Has anyone had any experience in that area?

About a year ago, I made a decision to pay off my highest rate cards.

I called all of the card issuers up and requested a lower interest rate for 6 months to help with the repayment.

Capital One responded. They lowered my rate permanently and consolidated 2 cards, thereby eliminating the annual fee on one. (thank you - Eugene Cook!)

Cross Country Bank lowered my rate to 10% for 6 months which really helped a lot.

Providian did NOTHING. Actually increased my rate from 19.99% to 29.99.

Guess which bank I will trash every chance I get????

D.

PS.  Now I have only 2 cards - One issued by my credit union for 7% and Capital One (which is nearly paid off at 16%, What a difference it makes when credit card is not ruling your life!!! :)

I *love* my Capital One Visa Card.  I am constantly impressed by the way Capital One does business.  And, no, I don't work for them and I don't have stock in the company.

"Donna" <dtsc@yahoo.com- wrote in news

- About a year ago, I made a decision to pay off my highest rate cards.

- I called all of the card issuers up and requested a lower interest - rate for 6 months to help with the repayment.

- Capital One responded. They lowered my rate permanently and - consolidated 2 cards, thereby eliminating the annual fee on one. - (thank you - Eugene Cook!)

- Cross Country Bank lowered my rate to 10% for 6 months which really - helped a lot.

- Providian did NOTHING. Actually increased my rate from 19.99% to - 29.99.

- Guess which bank I will trash every chance I get????

- D.

- PS.  Now I have only 2 cards - One issued by my credit union for 7% - and Capital One (which is nearly paid off at 16%, What a difference it - makes when credit card is not ruling your life!!! :)