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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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I have one credit card bill that I last made a payment

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I have one credit card bill that I last made a payment on in ''05 This bill has made its way to a Law Firm to collect the balance of $9026.00. Should I file bankruptcy on this and if I do how would this help or not help me out in the long run? Is it in my best intreast to try to pay a little 100 a month or try for a loan? I do not know my options. The bill is from CO and I now live in NH.


It is hard to say if you should file bankruptcy for this $9026 debt. First you have to determine if you should file bankruptcy based on your total debt, and total assets. Then determine if a Chapter 7 is appropriate and if you meet the means test. If you can't qualify for a Chapter 7, then you see if you qualify for a Chapter 13, you must be able to have the ability to make payments on your debts over a three - five year period.

This all depends on your specific financial situation. In a bankruptcy you take your total assets, anything you have an ownership interest in, and total it up. Then you take State specific exemptions (this is the amount they "exempt", they don't take it), and anything left over is distributed to your creditors, if there is anything.

If you do file bankruptcy then this debt will be classified as an "unsecured debt", and any judgment they may have received would be wiped out.

It would be best for you to contact a bankruptcy attorney in NH so they can go over your financial situation in more detail. If this is your only issue, it may be easier to try and negotiate with the debt collection agency and pay an agreed to amount. If you go this route, make sure you get the agreement in writing, and with all the specific amounts and time frames detailed in the agreement.

Customer: replied 8 years ago.
sounds good so i need to call the collector and try to settle on an amount? Most times do they bring the bill down any?
Yes, you should give it a try. They will be very resistant at first, and they may not want to negotiate, they can be very difficult people to deal with. Often times companies do negotiate, and ask for at least 50% off the total amount, and then offer a payment plan you can live with. Remember if you agree to a lower amount and then default they will want the entire amount! Let them know if they don't work with you will be filing bankruptcy, they know if that happens they won't see anything,so it may motivate them to work with you. If you feel you still need to consider bankruptcy, see an attorney.
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