We owe approx. 21k on credit cards. The settlement company projects we will pay about 14-15k and at the payment we can afford it will take 5 years. Would it be better or easier to just declare bankruptcy? I know a chapter 7 is pretty devastating to credit reports, but we could start rebuilding credit much faster. Any suggestions are greatly appreciated.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.