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Should we contact credit card companies to try and settle debt prior to filing chapter 7

Posted on: 13th May, 2010 04:16 am
We owe unsecured credit card and medical bills of 80-100k. Would it be wise to try and offer to settle with them lets say 10 cents on a dollar that we owe on these debts prior to filing. I have some money coming on a tax refund and some IRA money I could pull out and may be able to borrow from family to use to try and settle with them to try and avoid filing bancruptcy.Any thoughts in regard to would be appreciated or if anyone has been able to do this relate their experience in doing so. Thank you in advance for you help.
Hi Foxflash,

It is nice to know that you are planning something positive. It is always better to go for bankruptcy when you have exhausted all other options. As you have some cash now to settle off the debts, try to negotiate with your creditors yourself. If that is not happening then there are companies who helps people to do debt settlement and they also provide free counseling about debt consolidation.
I hope this will help you.
Posted on: 13th May, 2010 06:58 am
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