Legal Question in Bankruptcy in Texas

Re: Credit Arbitration, What next?

Everyone's financial situation is different and it is impossible to answer the question without assessing your income, assets, and debts. Many attorneys will provide a free initial consultation to give this advice.

Re: Credit Arbitration, What next?

Short answer -- From my perspective you would be better off filing.

You have really really tried to resolve your debts and that is admirable. Since one of your creditors is pushing this to the next step I don't think you are in a good position. You could seek favorable repayment terms in the arbitration. If you are employed I don't think you will enjoy much success. In addition, you are being gouged with interest rates (I guess between 16% to 21%) and as a result it will take years and years to repay your debts. The process of preparing for an arbitration as well as the arbitration itself will be a heavy emotion as well as financial burden. You would be better served by using your time and energy to focus on a savings strategy -- paying YOURSELF each month by contributing to an IRA or a mutual fund. Also, if this creditor files suit (perhaps after the arbitration) against you, the result would be a judgment that stays with you indefinitely.

EVERYONE DESERVES AT LEAST ONCE CHANCE TO START OVER FRESH! Please read my firm's philosophy. Currently, the bankruptcy laws make it easy to file. The Congress and Senate may make changes to these laws making it very difficult to file for a complete "discharge" (the term in bankruptcy which means eliminate or wipe-out your debts) In the future it may be possible to discharge only a small portion of your debts. So if you had a judgment against you for example, you might only be able to discharge a portion of this debt.

Please call me to discuss your particular situation in greater detail. ph. (972) 231-5500