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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2891
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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We have about $50,000 worth of credit card debt. We turned

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We have about $50,000 worth of credit card debt. We turned everything over to a Credit Counselor which has worked out fine except for American Express, who has turned us over to Collection Agency. They say they will not accept the terms from the Credit Counselor, and will not stop harrassing us. We owe them about $18000, and are paying just them $400 a month. What can we do - file Chap. 13???? Please help they are giving me a nervous breakdown.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Hi. Thank you for your question.
If the creditor does not want to work with the counselor (they are not required to), a
Chapter 13 is a good option if you have steady income. You can pay back anywhere from 10-100% of the total debts you have, based on your assets and your monthly disposable income. This will be a 3-5 year repayment plan. Talk to a local bankruptcy attorney, most offer free consultations. If you have no unexempt assets (see your available exemptions by searching Alabama bankruptcy exemptions) and your income satisfies the means test (6months budget analysis) then you may even qualify for chapter 7, to eliminate the consumer debt in just 90 days. The bankruptcy attorney can review the pro's and con's for each chapter for you as well. Thank you for your question, good luck.
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