Question by jose_jara2: How do I convince someone not to file bankruptcy?
A friend of mine who drew $ 18K in credit card debt is debating on filing bankruptcy. He is fully able to repay his debts to his creditors, and fear that he may be putting his future at risk. As many people know bankruptcy and going through with it takes a lot of careful thinking. My buddy is hardheaded and thinks the bankruptcy courts will be open to discharge 100% of everything. Not a bad idea if he owed $ 350K and in over his head…$ 18K is workable in my book since he has no real living expenses. Any ideas?
Best answer:
Answer by Irfan
I had about $ 17K in credit card debt last year. I was so close to filing for bankruptcy but i did not. Bankruptcy stays on your credit report for 10 years, whereas, bad credit entries stay for 7. What i did with each of the creditor was negotiate them down to a settlement amount which worked for both of us. I ended up paying around $ 11K altogether. However, this negative entries do stay on my report for 7 years but they are better than bankruptcy which stays for an entire 10 years after you file them. Tell your friend to look into settlements with each of his creditors. Read up on debt settlements and how to do them. By the way, i did not go through any counselor or agencies. I did everything on my own. He may have to pay taxes to IRS on the amount that creditors forgave if its in the excess of $ 600 per card. Good luck. I would say debt settlements will be his best option since his credit is already messed up.
Give your answer to this question below!