Legal Question in Bankruptcy in Pennsylvania
credit card debt
Two of my credit cards have gone to collections and one has not. I would like set up a payment plan of $50 per month for each of the 3 accounts. Is there any way they would not accept that or would they more likely accept the $50 rather than nothing?
2 Answers from Attorneys
Re: credit card debt
A lot depends on the collection agencies. Most of them will not have any authority to accept a payment plan and the credit card companies will not want to accept less than the full amount due on the cards with you paying the minimum payment for the rest of your life at exorbitant interest rates. There are a couple of solutions. One is to simply wait them out, especially if it has been over 4 years since you last paid on the card and if you do not have any assets to protect. Another is to negotiate a lower lump sum payment with the collection agency and come up with the lump sum from another source. A third is to get a loan from another source at a lower interest rate and pay off the balances then repay the loan.
Re: credit card debt
While negotiation with your creditors is always possible, it is not likely they would enter into such a payment arrangement. It may seem unreasonable, but they would rather you file bankruptcy than make such a deal.
To that end, I suggest you consider a bankruptcy which will potentially completely eliminate the debt with no payments. You should speak to experienced bankruptcy counsel.
I trust this answers your question, but feel free to call or E-mail me on a free initial basis.
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