Bankruptcy or pay debt off?

Question

In the long run which would be quicker to repair and restore my credit? I'm around $20,000 in debt give or take a little. Nearly $15,000 of that is for a car that was repossessed (which someone had co-signed on, so I have screwed their credit up as well.)

First of all almost a year ago I was terminated on a retaliatory basis. I had gotten credit cards for emergencies while I was working there. The boss had me going out of town and I didn't have the money and he wasn't willing to pay or reimburse for these business trips, so I HAD to get a credit card.

After being terminated I contacted the companies as I had been paying into the payment protection plan. Which of course, they refused to honor until I acquired the proof that I was no longer working there. I sent a request letter to the man I was working for and he refused to give me a letter of dismissal.

So, my main questions are:

-Should I file bankruptcy or pay off my debt? Which would be better on my credit?

-Regardless of whether I file bankruptcy or not is there any way for me to contact the credit card companies and have them take off all of the overdraft fees, late fees, and reimburse, or deduct rather the months I was out of work that THEY SHOULD have been making the payments? IS this something I should even consider doing or is it a waste of time?

-Or should I have them reimburse all of the months I paid into the payment protection plan?

-How much will I have to pay back?

-Is there a particular site where I can further research the NEW bankruptcy law?

-Around how much will an attorney cost in California?

Advice please!!!! Your advice is very much appreciated.

Answer 1

you should be responsible and pay off your debt.

Answer 2

You need to call a credit councilor. There are many free services. They know the legal answers of each of your questions and can help you set up a step by step plan of action. The sooner you call them the better. They can also advise you of a good lawyer if you need one.

Good Luck.

Answer 3

An initial consultation with an attorney should be free at which time they will discuss their fee schedule. Bankruptcy is a legal (and emotional) process in which there are times it is unavoidable. Only the attorney and trustee can tell you if you even qualify for bankruptcy... wanting to is different from being able to. Before going so drastic, why not consult a consumer counseling program? The site below is free to put you in touch with professionals. There are different kinds of bankruptcy... discharge or repayment. Check out your options before you mess up the next 10 years of your life regarding credit, employment options, insurance costs, and your reputation:

Answer 4

Here are some sites to check out. They may just answer all you questions.

Answer 5

Hi there,

Credit card debt is a massive problem millions of people are facing at the moment and can really ruin your life. Repossessions are going through the roof because people cannot afford to live with the massive rises in the cost of living.

You really need to minimise your credit card debt and ideally get rid of it.

Firstly, consolidate your cards into one with a zero interest deal, if you can. Then get rid of all the others and start paying the one that is left off. It does mean you are going to have to cut back and live within your means, but that is no bad thing.

Paying off your credit card debt can take some time and will require discipline on your part but it can be done.

Hope that helps, but please let me know if you need any more info :)