We Should be Filing Bankruptcy But Want to Avoid Bankruptcy. – Mel

“Dear Steve,

We owe over $100,000 in unsecured debt. Of course our outgoing is more than the incoming. BUT…somehow we have been able to maintain a current status with our payments.

Technically, we should be filing bankruptcy but we are going to give repayment on our own a try first.

I understand that your first loss is your best loss but I still have reservations of having my personal information out in public. We have contacted our creditors proactively and some have worked with us and reduced interest rates when they “can”, lowering our payments for 12 months. The others said that they don’t have any help for us. That we are in a credit agreement where the interest rate can’t be changed.

What if we sent the unworkable credit cards what we could afford and maintained that payment every month?

Instead of the 160.00 the want, we pay only 100.00?

How fast do unsecured creditors charge off accounts?

Would they charge us off if we were making an attempt to pay back the money.

Would they work with us then?


Dear Mel,

If you pay less than the contractual amount due your account will go delinquent and they will follow whatever the cardholder agreement says on those accounts. Typically the interest rate will increase, you will be charged additional fees, you could be sued eventually and more.

covering eyesYou can give whatever option you want a try but just don’t make the classic mistake of picking the right solution for your situation based on an emotional bias.

Just because you might not want to file bankruptcy, it would be silly to exclude or be blind to it as an option without understanding the facts or relying on assumptions.

I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

See also  Do Not Avoid Bankruptcy - 14 Reasons

Then use the free How to Get Out of Debt Calculator to review your options.

Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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