No. of Recommendations: 3
Getting buried in $54,000+ credit card debt was as much, if not more, my fault, as the banks that enabled my doing so. I kept up with minimum payments, and stopped using credit cards. I had little disposable income. Then Chase increased the minimum payment to an amount that put me over the top that I could afford to pay.

I asked the banks for settlement options - None were offered, until I filed the Chapter 13. Chase, then, offered a settlement option, but I needed ALL of the banks to do the same - I could not accept a settlement from only one or several banks and declare Bankruptcy on the rest - To my understanding, the court would not allow the bankruptcy, under such circumstances, as it would, essentially, amount to discrimination, in the total debt amount owed.

One of the credit card companies was particularly challenging to deal with. They had, themselves, filed bankruptcy. I suspect they were under court orders that limited their negotiating. They also employed very aggressive, and rude, debt collectors, to the extent that I felt it necessary to block phone calls from them at my place of employment, which is, at least was, not legal. They also sent me 1099-C for a tax deduction for them that I would have to pay on the remaining debt that was not discharged by the Bankruptcy - which, pretty simply, only required filing an additional form with my income tax return last year, showing that the debt was discharged by way of bankruptcy to reverse.

Filing bankruptcy ls not an easy matter. The requirements and documentation are very stiff, following revisions to the bankruptcy code, after the bank meltdown. You need to show that you cannot afford to repay the debt. Then, you need to show that you can afford to pay the monthly settlement amount, in a Chapter 13. If you miss a scheduled payment, the bankruptcy can be revoked. You must file a copy of your income tax return, annually, by June of the following year with the court. I do not want to go through it again.

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