[rockstar008]

Hi everyone and merry christmas... I have a couple of quesitons about my credit situation...
I have a few credit cards debts, actually I owe about 6 credit cards. I stopped paying them about 4 years ago, and now I have all these collection agencies suing me. I received a couple of judgments.
To be honest between all of them is a lot of money, but I want to get my life back on track.
What would you guys suggest? I received a couple of offers from two of them willing to settled for half the amount... whats the proper way to do this? Someone told me I should ask them to fax me a letter stating that once I pay that 50% settlement then they would send that info to the credit report agencies saying that I paid off the debt in full... would that be the right thing to do? I mean I don't have the money to pay all 6 cards now, if I pay one to start will the other ones keep suing me?I want to pay one at a time...
Or is it better just to o bankrupt?
Been thinking about bankruptcy 'cause I was also hospitalized a couple of years ago and they are after me for 30,000 dollars... I mean I can't pay that amount...
I guess one of my questions is what is the best thing to do, go banryptcy or try to make payment arrangements... I really want to get my life back on track, and would like to restablished credit and have good crtedit sometime again... Please help!!

[oneguyinohio]

You can choose either option, both contain negative aspects. If you file backruptcy, that will be on your credit report, but at the same time the debt will be wiped clean... if you choose to pay off the cards, you might pay down on one only to have the interest eat up the amount you have previously paid depending on what amounts you are able to pay over a given period.

If I were in your shoes, and had little income, I would concentrate on using the money you do have to file for backruptcy and paying a lawyer. If you anticipate any more medical needs, you might wait...

In considering the whole picture, you'll want to look at the time frame that each strategy will take you to complete and get to the point where you want to be in the end.

[Fr_Chuck]

Of course as for as your credit, I would guess that with a few judgments, a lot of 4 year old unpaid debts, and a hosptial bill, most likely your credit rating can't be hurt with a bankruptcy, heck it could even make your credit better.

So it may be worth checking with a bankruptcy attorney.

[farmgirlmo]

Not an answer to your actual question... just a little input.

If you decide to settle for less than full amount, make certain that you get a written statement stating that the debt is considered paid in full. Collection agencies like to buy a debt for pennies on the dollar, settle for a certain amount, make their profit, and then resale the remaining balance to another collection agency.

Also, you can try doing "pay for delete" agreements.