We have $47k in credit card debt, is it better to negotiate with creditors or file bankruptcy

The credit card companies generally don't negotiate lower monthly payments. If you can pay a lump sum, they may talk.

In most cases, people who file for bankruptcy keep everything they have. I've written a bankruptcy FAQ that should answer most of your questions. It is at http://bankruptcylawmaryland.com/bankruptcy.htm.

Brett Weiss
brett@BankruptcyLawMaryland.com
www.BankruptcyLawMaryland.com

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The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation.
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Some credit card companies will put you into a payment plan if you are having a hard time paying your bills but still want to pay them in their entirety, by reducing the interest rate. However, once you start falling behind on credit cards, they will usually negotiate the amount with lump sum payments. It doesn't hurt to call and try to work something out. However, if you can manage without credit cards, a bankruptcy would discharge all your credit cards, provided you haven't used them lately. You need to consult a local bankruptcy and consumer law attorney to look at your personal situation to determine the best fit for you.

Schedule an appointment with a bankruptcy attorney to review your situation. You can probably find one who offers free initial consultations. What you should do depends, to a large extent. on what you can afford. Bring with you when you meet with the atty a budget showing your monthly income and living expenses. This will save time and give him/her a good starting point in reviewing your situation.

Schedule an appointment with a bankruptcy attorney to review your situation. You can probably find one who offers free initial consultations. What you should do depends, to a large extent. on what you can afford. Bring with you when you meet with the atty a budget showing your monthly income and living expenses. This will save time and give him/her a good starting point in reviewing your situation.

The answer to this question depends on many things. But, for the record, my practice has filed bankruptcy for a number of clients who tried debt consolidation and negotiation first, and could not make enough headway for it to be workable. And sadly, all the additional payments they made to those creditors while they were trying to work things out were funds they lost and would not have had to lose if they had filed bankrutpcy in the first place.

You need a consumer law attorney who is knowledgable in bankruptcy to obtain the best result. The National Association of Consumer Advocates (NACA) is a non-profit consumer advocacy organization. NACA maintains a web site at www.naca.net where it lists geographically consumer law attorneys all over the US. If you don't already have an attorney, please look there for someone in your area who can help you.