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Hi,
I have $22,000 dollars in debt (unsecured credit card debt). I have been considering filing for chapter 7, but I know this negative that will stay there on my credit report for 10 years. My credit is already shot, and I don't have any large sums of cash to negotiate payoffs.
What I want to know is will it be worth my time to work out a debt payment plan and still make payments for years to come, or settle all debt now, or should I file bankruptcy. I have no property and have no assets of value. I should be able to file for chapter 7. Any help in this matter is appreciated, thanks.
Settle debt or file bankruptcy
Hi Skye,
Yes, you can try to work out a debt repayment plan to pay off your debts. It is better to avoid filing bankruptcy, as much as possible. It does hurt your credit, and stays on your credit report for 10 years.
If you think that it won't be possible to make high payments each month, you can try settling the debt. Debt settlement hurts your credit score because you will have to miss payments before settling your debts.
Thanks,
Aaron