Legal Question in Credit and Debt Law in Pennsylvania

Re: Unable to pay credit cards

The credit card companies do not have to take less. You can use a consumer credit agency to work out a reduced payment agreement to spread out the payments. You also can contact the credit card companies yourself and propose a lower monthly payment and reduced interest rate so you can avoid filing bankruptcy.

If you need to consider filing bankruptcy to eliminate the credit card debt (if you can continue to make your mortgage payments your house should not be at risk), there are two types. Chapter 13 is reorganization--it spreads out the debt repayment and does not hurt your credit as much. Chapter 7 is liquidation--the debt is eliminated but your credit is much more negatively affected.

This is general information for discussion purposes only. We would have to form an attorney-client relationship for me to give legal advice.

Re: Unable to pay credit cards

FIRST, you must sit down and make up a REAL budget, including all your costs and expenses. IF you have any money left over, you may not need or qualify for bankruptcy.

Then, contact the credit card companies, and see if you can work out a payback arrangement YOU CAN LIVE WITH. Ask for a low fixed rate, and small enough payments that you can make them each month. Give up all but one card, and ONLY USE IT FOR REAL EMERGENCIES.

There are agencies to help you work out arrangements at no costs. I think they are paid for by the banks and card companies so fewer people will file bankruptcy and get more money paid back to these companies.

Good luck to you.

Kevin J. Begley, Esq.