A consumer could qualify for Chapter 13 and be required to make five-year payment plans to numerous unsecured creditors, including the junk debt buyers who own their inflated credit card balances. Bankruptcy would be excessive for this debt. A bankruptcy remains on a credit report for ten years, whereas an unresolved debt may only remain for seven.
According to the Credit Card Debt Survival Guide, appropriate written communications in accordance with the Fair Debt Collection Practices Act in response to a debt collector's or collection attorney's initial demand for payment can signal to the collectors that the consumer is educated in debt collection matters, is aware of his or her rights, and is therefore not a good candidate for further court action.
While debt collectors can threaten legal action and notices on the letterheads of collection attorneys can be intimidating, consumers who take the time to educate themselves about debt collection can motivate debt collectors and collection attorneys to redirect their efforts elsewhere. It is all about documentation; how a consumer responds in writing to collection efforts and what original creditor documents the collection attorney has to pursue a debtor (typically none or only copies of old statements).
For protection against creditors; to prevent creditors from pursuing legal action to seize assets, consumers file for bankruptcy. Insolvency should be the last resort, not the first option. There is typically no signed agreement between the creditor and credit card holder. These signed charge papers are for the benefit of the merchant and not the bank. Before filing for bankruptcy, consumers should think about documentation and be willing to fight debt collectors. Selective informal bankruptcy with nonpayment of selected unsecured obligations is a viable debt relief option to consider.""
" - https://www.affordablecebu.com/
