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Author: dsemmler Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308519  
Subject: Re: Bankruptcy questions Date: 9/14/2003 12:59 AM
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Is settlement better than bankruptcy? How do the two differ on a credit report? How does a hardship program display on a credit report?

As far as I know, settlement is not much better than bankruptcy. I believe your credit report will indicate that a settlement was made on the account. This basically indicates to other creditors that you were unable to satisfy your obligations and negotiated down.

I am not familiar with any of these things because I have not experienced any of them. I believe a hardship program is not displayed on your credit report at all. As far as the creditor is concerned, you are paying your entire obligation. What they are doing is working with you on the interest rate and/or minimum payment so that you can afford to pay them. It is in their best interest to go that route because then they get more of their money back.

I think you need to call your creditors and ask to speak to someone regarding their hardship programs. I am not sure if that is what it is really called or not but I am sure they will be able to assist you. Explain that you are getting behind due to the rates and high minimums but that you really have a desire to fulfill your obligation to pay the debt.

I sincerely hope you put the idea of BK and settlement out of your mind and work with your creditors to pay your entire debt.

dt
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