Well u sould talk to the debt settlement department of collection & they can settle down your debt to a nominal amount that u can pay because filling a bankruptcy means bad credit history & to improve it take 7 years atleast.I belive u must know if ur credit history is poor then u will not get any credit card,Mortgage or any Job.So, try to do a settlement.

ENJOY

Do not file for bankruptcy, work with the collection agencies and try to get the amount reduced then work out a realistic payment plan or pay it off if you can.
The bankruptcy will plaque you for a long long time.
It will show up forever even though it’s supposed to be wiped out after seven years.

It depends on what you are planning to do in the future. If you file bankruptcy, it will hurt your credit for a couple of years. But if you negotiate with them obviously you will have to pay at least 6k back (assuming they all settle for 50%) and filing for bankruptcy will cost you anywhere from 1-3k so if you are not trying to buy a house or a car and dont care about your credit for a while then you might want to go the bankruptcy route. HTH

If you can negotiate and pay it off, obviously that is better for you in the long run. Bankruptcy will effect your ability to obtain credit in the future. Do you plan to buy a house, a car, etc.?

Bankruptcy
Bankruptcies: Advantages, Disadvantages and Different Types
by InvestorGuide Staff

Bankruptcy is a proceeding in a federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability. This basically means that a person (or a corporation) was so far in debt that they felt a fresh start was their only option. More than a million Americans filed for bankruptcy last year, and the number continues to rise

There are three types of bankruptcies:

* “Chapter 7″ – All assets are liquidated, except those that are exempt in your state (possibly a home, car, clothing, household appliances, life insurance, pension, and work-related tools). This property is sold by a court-appointed official or given to creditors.
* “Chapter 11″ – Intended largely for businesses. Designed to allow a business to continue operating while repaying creditors through a court-approved plan.
* “Chapter 13″ – If you have unsecured debts of less than $269,250 and secured debts of less than $871,551, you may be entitled to this type of bankruptcy protection, which allows you to keep certain property while you pay off your debts under the supervision of a court-appointed trustee.

All three types of bankruptcy may get rid of unsecured debts (those where creditors have no rights to specific property) and stop foreclosures, repossessions, garnishment of wages, utility service cancellations and activities of debt collectors against you. Chapter 7 and 13 bankruptcies provide exemptions that allow you to keep certain assets, though those exemption amounts vary greatly from state to state.

On the downside, it’s not a “get out of debt free” card. Here are some of the disadvantages of declaring bankruptcy:

* You need to file the claim and pay a fee. You may also need to pay a bankruptcy lawyer, and it can be difficult to find a good one, since some try to maximize their profits by handling cases as quickly as possible instead of giving your bankruptcy the attention it deserves.
* Some debts cannot be eliminated by declaring bankruptcy, including taxes, student loans, alimony, child support, debts that resulted from fraud or willful injury and some property settlements, fines and penalties.
* Your bankruptcy will remain on your record for up to ten years. This may make it difficult or impossible to obtain a credit card or a loan.

Your friend is a noble person you should be very grateful. I would l call The Suze Orman Show for advice.

With bankruptcy you may still have to pay of outstanding debt once you meet income thresholds.

If you are wanting to take out a loan in the future then forget bankruptcy.

It’s a massive decision and not one to be entered into lightly.

Here is some information on bankruptcy:

Good Luck