Debt Consolidation versus Bankruptcy
Date: Sat, 06/02/2012 - 13:34
I recently signed with a debt consolidation company to reduce $33,000 worth of credit card debt. The debt was accumulated due to my husband's mismanagement and I ultimately divorced him. A payment schedule was arranged and the company is in process of negotiating with the credit card companies. The credit card companies recently cancelled two of my cards and I only have one remaining. My credit score is very low. My question concerns whether or not I would be better off filing bankruptcy instead of working with the debt consolidation company. My thought is that the bankruptcy would offer a clean slate whereby I could begin rebuilding my credit. If I remain with the debt consolidation, it will take a few years to pay off the debt and my credit history is already destroyed. I would appreciate any advise you could provide. Thank you.
It is likely that your remaining credit card will also be cancel
It is likely that your remaining credit card will also be cancelled since you entered a DMP.
If I was in your position, I would file the BK and start fresh. There is always a good chance that while in a DMP one of your creditors might attempt to sue you..it happens frequently. Make an appointment with a local bk attorney and talk to them.
