What is an alternative to filing bankruptcy?

Question

I am about $2,000 in credit card debt. It may seem like a little but these people are harrassing me. They have already levied my bank account for about $500.00.

Answer 1

Do not even think of bankrupcy over 2K. Fisrt do not given them electronic access to you bank account...if they have it...open a new account and move your money. Next time they call and get rude hang up...if they call back tell them that is they wish to speak to you with respect you will talk otherwise they can yell at a dial tone. They are trained to be mean...its gets the money faster than nice.
Start saving up money to pay it off. Save up 500-800 bucks and offer that to them as PAYMENT IN FULL, If they accept then you need to ge tthem to put tha tin writing...that they will accept 500 as PAYMENT IN FULL. Then get a cashiers check or money order for 500 and send it to them witha return receipt request. Save the reciept and the letter stating that the accoutn will be settled PAYMENT in full for 500...save it forever!!! (500 ius an example they may want more to settle or may not settle) Anytime you send them money make sure and send a cashiers check so that they have no access to your personal funds.

Don't let them get to you, but understand that it is your debt and you do owe it. But that doesn;t give them the right o be rude. If they yell at you or make any threats let them know that you are filing a complaint with the federal trade commision - and do file it.

Avoid more debt, get on a budget and don;t use friggin credit cards anymore!!!! You cannot borrow your way out of debt either...don't do a payday loan or some other BS...just save and pay it.

Answer 2

I guess it goes without saying you shouldn't have let yourself go into debt in the first place. But since you have...

They shouldn't be harrassing you if you are making your payments on time, so I have to assume you've missed a payment. That is not good.

You do NOT need to file bankruptcy. You would probably spend more to do that than it will cost you to pay off your bills. $2000 is not worth bankruptcy.

If you have the debt on multiple cards, you might consider debt consolidation (do a search, you'll find a lot of information about this). That will combine all your bills into one monthly payment and you will not have to shell out huge sums of money every month trying to pay off each card. It will take longer to pay it off this way, but it is much more affordable.

If it is just on one card, send them the payment you owe them and be sure to continue to pay on time. Do not accrue any more debt. If you can, pay more than the minimum balance.

If you cannot even make the minimum payments, then I would suggest you find other things that are costing you money that you can do without for awhile (cable, cell phone, etc...any kind of luxury that you are billed monthly for) until you can get caught up on your credit card bills.

Answer 3

Bankruptcy would probably cost you more than you owe. Besides that, your credit would be even worse afterwards. Your best bet is to find a way to pay the debt off. Getting another credit card to transfer the debt to is probably a bad idea. Getting a consumer debt loan is probably a better idea. You could look up consumer debt or debt counseling in your local yellow pages and see what is in your area. They might be able to give you some options that fit your situation.

Answer 4

This may sound shady but how about opening up another bank account or opening up another credit card to pay off the other one? You can also check out www.prosper.com and get a small personal loan from them or someone else. Is there any reason why you cant make payments to them? Payments on 2K should not be much. Oh, and dont file bankruptcy over 2K, i dont even think you can do that.

Answer 5

Hello,

I wouldn't file bankruptcy over $2,000 --- assuming you are working part-time.

You could try refinancing all your credit card debt into one consumer loan. The interest rate might be high; but your payments will be smaller/more affordable.

I would just google or yahoo search the word: credit card debt .... and you should be able to come up with multiple companies trying to sell you some kind of refinance package (assuming you can show evidence of employment, some kind of income, etc.).

Hope this helps

Answer 6

You would have to be insane to file bankruptcy on $2000. These people were nice enough to borrow you the money. pay it back. Go talk to a credit counselor, they are in the phone book. Then ask yourself if the things you bought were worth the agony you are going through now. Good luck

Answer 7

most places wont let you file Bankruptcy or even alot of credit relif wont help with only $2,000 debt as the average cred card debt is way more than that.. try to not buy everything you see, its hard but sometimes you gotta just stuff pass.

Answer 8

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Answer 9

Set yourself up a budget. List all of your expenses (debt and bills) and how much you pay each month. Then list your income. Your income should equal your expenses. Do everything you can to get current on the bills.

Once you are current, every extra scrap of money you can find should go towards saving $1000 in a starter emergency fund.

Once you have that funded, you turn your attention to your debts. List each one from lowest amount to highest amount, and focus on the lowest one first. Take every scrap of money that you can find and pay towards that one.

When that one's paid off, do it again on the next debt. You'll be amazed at how much progress you can make when you are truly focused on getting out of debt.

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Answer 10

Just pay the $2,000. That small amount is not worth going into bankruptcy for.