Re: Eliminate Credit Card Debt Without Bankruptcy

Filing Bankruptcy Chapter 7 and Chapter 13 Personal Bankruptcy

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Posted by: Ben Thair on 01/21/04:

In Reply to: Eliminate Credit Card Debt Without Bankruptcy posted by: Credit Solutions, Ltd. on January 20, 2004 at 19:38:36:

: Credit card debt can be legally eliminated. Our company helps people who are overwhelmed by credit card debt. Chapter 7 bankruptcy is a bad option, it stays with you for ten years. The best alternative is to negotiate deep discount settlements with your credit card companies. Please visit our site at www.creditsolutionsltd.com for more information.
I considered a debt renegotiation firm before I filed for chapter 7. After receiving the firm's offer and enrollment legal forms, I did some research on the internet, I opted for bankruptcy for the following reasons:
a. The companies generally do not guarantee or promise anything in return for their fees. They only commit to developing a settlement plan, offer it to creditors, and negotiate on your behalf. They may opine that creditors have no choice but to negotiate, but if they refuse, your fees remain the same. You now have a firm hounding you, suing you, and you are still paying the debt negotiators, so how are you going to pay your bill? (the first four or five or more payments generally go entirely to fees). I found stories from others that after paying into these plans for a while they were forced into bankruptcy and were even worse off.
b. Many of these firms such as this one posting here, have nice web sites that reveal nothing about who you are actually doing business with, no names, no biography, no address, no resume, nada!
c. The company I dealt with, did everything by FAX, this really wasnt THAT time sensitive. They faxed about 12 pages to me, then wanted me to sign the paperwork and fax it back to me. This should raise a big red flag- this is signalling the company may be concerned about violating the relatively strict mail fraud laws.
d. But let's me optimistic, the company succeeds in negotiating your debt to 30% of your present balance (this can only be done when your balance with the negotiators has enough in it), you still have to pay income taxes on the forgiven portion. And God forbid, your debt negotiators go bankrupt or just disappear in the meantime, because you have no deposit to offer to settle your debt. Is this really better than chapter 13?
e. I'm approaching social security elegibility- I really needed a fresh start. I don't doubt for one minute that chapter 7 was the right decision for me. I have one credit card, one debit card, a paid for auto, a small mortgage on my home, I'm not concerned whether I'm ever approved for credit again in my lifetime. Cash works just fine!

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: : Credit card debt can be legally eliminated. Our company helps people who are overwhelmed by credit card debt. Chapter 7 bankruptcy is a bad option, it stays with you for ten years. The best alternative is to negotiate deep discount settlements with your credit card companies. Please visit our site at www.creditsolutionsltd.com for more information.

: I considered a debt renegotiation firm before I filed for chapter 7. After receiving the firm's offer and enrollment legal forms, I did some research on the internet, I opted for bankruptcy for the following reasons:

: a. The companies generally do not guarantee or promise anything in return for their fees. They only commit to developing a settlement plan, offer it to creditors, and negotiate on your behalf. They may opine that creditors have no choice but to negotiate, but if they refuse, your fees remain the same. You now have a firm hounding you, suing you, and you are still paying the debt negotiators, so how are you going to pay your bill? (the first four or five or more payments generally go entirely to fees). I found stories from others that after paying into these plans for a while they were forced into bankruptcy and were even worse off.
: b. Many of these firms such as this one posting here, have nice web sites that reveal nothing about who you are actually doing business with, no names, no biography, no address, no resume, nada!
: c. The company I dealt with, did everything by FAX, this really wasnt THAT time sensitive. They faxed about 12 pages to me, then wanted me to sign the paperwork and fax it back to me. This should raise a big red flag- this is signalling the company may be concerned about violating the relatively strict mail fraud laws.
: d. But let's me optimistic, the company succeeds in negotiating your debt to 30% of your present balance (this can only be done when your balance with the negotiators has enough in it), you still have to pay income taxes on the forgiven portion. And God forbid, your debt negotiators go bankrupt or just disappear in the meantime, because you have no deposit to offer to settle your debt. Is this really better than chapter 13?
: e. I'm approaching social security elegibility- I really needed a fresh start. I don't doubt for one minute that chapter 7 was the right decision for me. I have one credit card, one debit card, a paid for auto, a small mortgage on my home, I'm not concerned whether I'm ever approved for credit again in my lifetime. Cash works just fine!

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