Debt Management VS Consolidation VS Bankruptcy

[aprilshere]

I have $28,787 in unsecured credit card debt. My income is about $580 after taxes and my expenses gobble up 90% of my income so there is very little left to make payments. I am about 3 months past due on most of the cards but there are a few small ones I have been paying on. I would really appreciate someone telling me what the good and bad points are about consolidation, bankruptcy and debt settlement services. I am also intrested in find a reputable company or attorney to help, does anyone know any?

[Seth Watson]

IF I was in your situation, here is what I would do. I wouldn't send another dime to the credit cards, period. If you're only making $580 per month, and 90% of that goes to necessities, then you fall into the Extremely low income bracket. Bankruptcy is BANKRUPTCY, plain and simple. It's the worst thing you can do financially, and believe me when I say there are Plenty of attorneys that would Love to help you out with a Ch. 13 or Ch. 7, even if it's not in your best interest. There are legal fees involved, and a full list of horrible things that come with a bankruptcy. Consolidation is a third party intervention(same as Bankruptcy), and it will be marked as so. Anyone who tells you otherwise, is A) Lying or B) Works for a Consolidation company. There is no substitute for Settlement, bottom line. That's my general feeling, BUT a lot depends on what your circumstances entail. Details on your current employment/source of income, the length of time you had been paying (or still are paying) on the cards, ect. Due to your circumstances with the limited income, I would advise you to Keep your best interest in mind, and DO NOT send any amount of money to these creditors, if it in any way jeapardizes your current well being. There are good companies out there, but watch for anyone soliciting to you directly, if you know what I mean.