I’ve got about $35,000.00 in credit card debt, primarily work expenses from my last job. I was laid off six months ago and have been unable to make any payments on the credit cards since. I’ve also had a car repossessed and after auction owe about $16,000.00 on it still. I don’t think the company I worked for will be able to repay me on what I’ve put on my personal credit cards–at least not for a very long while.
My question is if bankruptcy is my best choice. I’ve been reading a lot about being able to rebuild credit in just three or four years after declaring bankruptcy. To me this seems better than trying to repay the debt. Even with the income from my job, I was still barely able to make just the minimum payments on the credit cards.
I’ve had a few friends suggest different settlement firms. Each of them has poor ratings and articles, though it takes some searching to find. Is that entire industry just one big scam? How does your credit actually be affected if you do consolidate the debt and pay only a percentage of what you actually owe?