Charge off or bankruptcy or default?

When my business closed, I defaulted on nine cards, a total of $90,000. Sometimes, if your business is dragging you down, you have to just put it on hold for awhile and find alternatives. I went out and got a full-time job. Not a job I'm crazy about, but it allows me to make the payments in a 36-month debt settlement program. If your nail business is slow right now and not paying all your bills, have you thought about just doing that on the side, keeping your normal clients, but working another job too? Something even part-time might give you enough extra to pay in a hardship program or debt management program if you don't think you'd be able to settle.

Susie, i already work 2 jobs. I am working as much as i can. i wouldn't want to sign up for one of their settlement offers and not be able to do it.

If your time is tapped out, there's probably nothing more you can do for extra money then. How much is your total debt?

With Advanta, 7400, BoA, 22000...

A payment in a settlement program would probably be around 500 a month for 36 months, so that would not be possible for you. Some creditors are giving pretty low settlements right now, if you wanted to do it on your own, but you can't be guaranteed they would let you spread those out. Consolidations or management programs would probably want close to the same monthly payment, just with lower interest and waived fees, to pay off quicker, so that won't help much either. Have you contacted either of your creditors and asked about hardship programs? I have read that some people don't get anywhere, yet others have good luck with lower payments. Otherwise, BK is certainly an option; you might want to talk to an attorney to see if you qualify. If you type in "filing bankruptcy" in the search box at the top of this page you will get all sorts of threads you can read also, including how it will affect your credit report. Maybe someone will jump in here that has had experience with that. Good luck, whatever you decide, you will be one day closer to having it all behind you!

i'm in the same boat, something happened with a CC payment of mine and now my 4 cards are defaulted, I'm looking for work and owe around 30,000.

Susie Q is right about settlement. Settlement is an alternative right before bankruptcy. What you want to do when choosing a settlement group to go through is do your due research and make sure the company you are going with is crediable. USOBA, IAPDA and the BBB are good resources to use when looking for settlement companies. DO NOT USE TASC as a reference guide for debt settlement. TASC is actually an organization designed by debt settlement companies to lobby to Congress to allow there services(being their companies) in states that don't allow them to practice in their state. TASC is headed by debt settlement companies that really don't even have a good rating with the BBB.

Personally, if you are not paying the bills and are barely making it , bankruptcy is probably the solution. I filed a few years back and I was on my way repairing my credit within 6 months. It is not as negative as some make it out to be.

If the original credit granter sold your debt and can both the collection agency and the orignal credit grantor report it on your report.