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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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Im not behind on my mortgage, credit cards or car loans at

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I'm not behind on my mortgage, credit cards or car loans at the current time. Husbands been out of work for a year and unemployment has ran out. will not be able to pay minimums on some credit cards. Have contacted a debt management co. but they can not help until I have defaulted on the credit cards first. Is there anyother way out of this without defaulting first?



Most companies will not work with you until you have defaulted on the terms of your loan. Once you are late with your credit card payments, you could ask that they reduce their interest rates, with the result being your credit card payments are reduced. You can also speak directly to the mortgage company and car company to discuss any sort of hardship program they may have.


Short of that, you can either go the debt consolidation route, or file bankruptcy. There is really nothing out there that can be done except reduce your monthly payments, if they are not willing to work with you, then you may have to default and go from there.

VanDLaw and other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
thanks for you answer I was hoping that I didn't have to ruin my credit. Seems alittle backwards if you try to be proactive before a default no one can help you.
Yes, many people wonder about that, but its because anyone could call and say "hey I don' t think I can make the payment next month help me", when in reality is more like "hey, I don't want to make a payment next month", so you really have to be behind before they deal with you. It doesn't make sense in the long run though, because most people want to pay their bills, and not get behind.