I have read through all the chains and simply could not find a concise answer to my situation. My apologies if this is redundant somewhere.
I have about 80k in unsecured debt, which is a result of losing my job a few months ago AND not spending within my means. I have learned the lesson of a lifetime!
Question: when the lack of funds began, I did contact my creditors and tried to negotiate lower interest rates, payment plans, etc. To my surprise, no one wanted to help me even though I was trying to be proactive. Now 5 months have gone by, the creditors are getting more aggressive, and a few are sending letters documenting they will be writing off the debt; the effort could result in liens and or garnishments. If I cannot pay them right now, what do I do? Do I call each creditor and work something out even though so far they will not do anything unless I pay them something, do I allow it to go to arbitration and ride out the 7 years SOL. I am trying to get back on my feet. If garnishing wages occurs or any other type of lien, I will be in such hardship I would have to file for bankruptcy. This I would like to avoid.
Please help..

How old are the debts?

Is the credit company whom is calling or a debt collector?

If Debt Collector do they represent the credit or themselves?

Hello.
-The debt is about 6 months old (there are 5 creditors)
-As of now, 4 are with the credit card company and 1 is with a debt collector, which has not phoned me; only written 2 letters. One of the credit card companies just sent me a letter stating they will be writing it off and going through the legal process to garnish or lien by May 25.
-The debt collector letter states they represent the credit card company.
Thank you.

Something you said is inaccurate, and I wish to clarify it for you.

You said,


do I allow it to go to arbitration and ride out the 7 years SOL.

That is not exactly how it works. A SOL of 7 years means they have 7 years (or 6.5 yrs to go) to take legal action against you.

Once they get legal action against you, they will have a judgement. Then, they will have 20 years to collect the judgement (depending on where you live, most places 20 years).

SOL deals with how long they can file a motion to take you to court to get a judgement, but once they get the judgement, they then have much longer to collect it.

$80,000 in debt, perhaps bankruptcy is an option?

Hi,
I do know that credit card companies are pursuing debt much more rigorously than in the past. They have lost a lot of money through "debt negoiations", and now with personal dept being much more, all across America, have stopped a lot of these negoiations.
I do suggest seeing a lawyer, finding out which legal options are best for you. Best wishes.