Question: I am working with my creditors to get payoffs. Discover is only giving me to June 29th if 9,900.00 not paid will make it a court action. Can’t put together funds that quick they say I will lose in court. It seems like a no win.
Answer: It is because of situations like yours that I usually do not recommend going down the debt settlement road. My experience has been that there are always some creditors who are quite reasonable, and you can make a deal, but others, like Discover in your case, that hold the line, and put the borrower in an impossible situation. I have found that Bankruptcy is almost always more effective and less costly, I have even found that it is quicker and easier to rebuild credit out of Bankruptcy then out of a debt settlement plan. I do not know what would make debt settlement superior to Bankruptcy for anyone who otherwise qualifies for the Bankruptcy. There are some people who have too much in the way of assets, or whose incomes are so high that Bankruptcy is not a good option, but that describes very few people with unmanageable credit card debt. I strongly recommend that you talk to an experienced Bankruptcy attorney in your area. You may be very pleasantly surprised by what such an attorney can do for you.