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Creditors and Bankruptcy/is bankruptcy my best option

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Expert: Regan Shinski - 12/24/2010


Question
I recently consulted an attorney about a credit card debt and loan that has been turned over to a company by the name of Glasser and Glasser last month. I have no assets and am barely making ends meet. The debt totals about 8,000 and I was advised it was best for me to file chapter 13, which would cost 1,000 that I have to pay first. I called the collection company back, and they offered to allow me to make hardship payments of 120 each month for both debts. I have no way of paying that right now. I'm trying to get another job. How long do i have before they try to take me to court & is bankruptcy really my best option. I live in Virginia.

Answer
Hello Mel:

I am a little surprised that you were recommended for chapter 13 instead of chapter 7 if you cannot make a $120 month repayment.  I would strongly consider getting a second opinion from a bankruptcy attorney.  Chapter 7 would discharge the debt and chapter 13 is a repayment plan.

I cannot answer how long or even if the collection agency will take to sue you.  This is really entirely up to them and varies by creditor.  I would say that you should NOT let a judgement get in place.  It can lead to garnishment and other nasty collection techniques.  Bankruptcy is sometimes better than a judgement.

I don't know if bankruptcy is the best option for you since I don't know your full financial and personal situation.  I would say that in the scheme of life $8,000 is not that much.  I know it's a huge mountain right now for you, but do you know what I mean?  Bankruptcy will destroy credit for ten years.  Is that worth it for $8,000?  You really have to be the one to answer that question.  I definitely would at least seek a second opinion on chapter seven so you have all information and options available to you.

Good luck,
Regan

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Creditors and Bankruptcy

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

Past/Present Clients
(private)

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