Mike,
Sometimes it's easier to negotiate a settlement in a courtroom setting because when the CA calls you, you are only a voice, a telephone number, a social security #, and a debtor. When you appear in court, you are a human being and they must meet you face to face.
I am glad this worked out for you and I hope you are able to take care of things and move on with your life.
Billygrrrrl,
Hmm, yes I can see why it is difficult to make a decision in this matter. On the one hand, your debt is relatively low so another bankruptcy does seem a bit drastic. On the other hand, you are going through quite a struggle as it is. It is so unfortunate that you stopped paying the bills because of the DS company, it's a large part of why I (and many others) are so upset at them. It really makes it difficult for you and removes one of your best options: a Debt Management (also called
Debt Negotiation) plan. Now that you are back to a payment schedule (and you are fortunate in that, many are not able to get back on track at all and are forced to file bankruptcy anyway), attempt a Debt Management plan. Click on "Do It Yourself" above for more details. The credit card companies call it a Hardship Plan. Explain why you had fallen behind, let them know of your struggle and your desire to do the responsible thing. In a DM plan, they lower your interest rate so your payments become more productive to the principle.
Man Bracken, on the other hand, is a huge problem. It seems that they may have paid off a bunch of politicians. They are being sued for FDCPA violations left and right (see
Mann Bracken post by me) and the only reason I can see that these monsters are still allowed to continue their nefarious practices is that they have paid off some powerful politicians. (Sorry if that appears cynical, if you read the post you will see why I said it.) They will likely not be interested in working with you because they are emboldened by the utter disregard for debtors that the FTC has displayed in this case. It's really sad to me personally because they have been so helpful in protecting the rights of ordinary Americans, but this is a major goof up. Perhaps if they didn't go on their crusade against Whole Paycheck - oops, I mean Whole Foods - then they would have the resources to shut Man Bracken down.
ANYWAY, write them a letter detailing your situation and setting down the terms you can afford. Be firm but polite. I don't know how detailed your budget is, but there is a great one in the MyDebts section above (if you do not wish to be contacted then do not put your phone number down). See how much you can squeeze out to them. Let them know that this is all you can afford one way or another. Even if they forced you to go to court, this is all you can afford. Period. And say that when the court sees your situation, they will likely agree. Just in case they
do decide to take you to court anyway, all is not lost because oddly enough
you may have more negotiating power for a settlement, even with an equitable payment arrangement. In other words, they'll have to accept your offer one way or another. The court will not force you to stop paying your other bills or starve.
I hope things work out for you to your benefit and you are able to take care of these things which cause such a strain in a relationship. Take it as a life lesson to never get credit again (unless usury caps are put in place), it is not worth the price.
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