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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Why would the banks and credit card companies not try to help

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Why would the banks and credit card companies not try to help you when you are having trouble. Wouldn't they rather you pay your balance than to file bankruptcy? I am trying very hard to pay my bills, but since my divorce, I have just got soo much credit card debt. I haven't paid any late, but I am only making the minimum payments. I've tried to get a loan to consolidate, but my credit is too far extended. It's in good standing (no lates) just too much. I always wanted to keep a good credit score, and never file bankruptcy, but I'm getting nervous, and thinking that may be my only way out of this $35K debt I have. If it were me, I would much rather get paid than have nothing once bankruptcy is filed. I get a lot of offers in the mail to help from companies, but I don't trust them, and I know of friends who got offers for say 10K credit to pay off debt, and in the end only qualified for 1500.00. I really don't want to file bankruptcy, is there any advice you can give me?

WALLSTREETESQ :

This is a common situation,

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the reason the creditors are not giving you decent settlements is that you are paying them now,

WALLSTREETESQ :

they will not settle with you until you stop paying them,

WALLSTREETESQ :

if you stop paying them,

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they will then consider a settlement for 50% or less of the debt,

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Debt consolidation companies will do the same, they will stop you from making payments

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and negotiate settlements with the creditors for a lower amount.

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In my professional experience, it is better to file a chapter 7, to get rid of debt, as you will have no payments,

WALLSTREETESQ :

and will not owe any taxes as you would if you settle debts for less than the balance.

Customer: replied 3 years ago.

That's too bad! I really wanted to keep my credit rating etc. I wasn't really even looking to pay less than what I owe, I was just hoping one of my creditors can see by my history that I am paying 5 different credit cards every month and would possibly prefer I gave them that amount in one payment by lending me the money to consolidate all of them ... do you see what I'm saying? Also, if I am getting married this Dec. will my fiancée be responsible for any of my existing debt (all in my name)?

A consolidation could work if they agree to stop charging you interest and let you pay the balance over a 3-5 year period.

Since these debts are yours only your spouse would not be liable, however if you ever default in paying them, and have a joint account the accounts can be garnished.
Customer: replied 3 years ago.


Is it realistic to try and speak with the credit card companies to stop or lower the interest, and if so, who should I speak to...just a representative that answers the phone?

the credit card companies would not do this, it may be possible to sign up for a debt consolidation company who may have the ability to do this, usually they have agreements with creditors to arrange for this.

https://save.freedomdebtrelief.com/consolidation?partner=msn&keyword=debt%20consolidation&match_type=e#step_amount
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