My main question is should I file bankruptcy or just let them slide into collections? Working with my creditors is not an option because I will not have income for several months. I dont feel that the collection agencies will go after me other than annoying phone calls due to the relatively low balance on my accounts. Also, I have no property that they can place a lien on. 5 years from now will I be better off if I file bankruptcy or just lived with the collection accounts?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.