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"How To Settle Credit Card Debt When Lawsuit Has Been Filed" Discussion

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Professional Q&As for "How To Settle Credit Card Debt When Lawsuit Has Been Filed"

Upsolve Community Member
2021-12-01

Can you settle your credit card debt instead of going bankrupt?

3 Reactions

Community Replies:

Upsolve Community Member
Absolutely! And many try to do so. Check out https://upsolve.org/learn/debt-settlement-pros-and-cons/ in our Learning Center to find out more. 

Upsolve Community Member
Definitely! This is a common strategy- though it's not possible or the best option for everyone. It generally involves offering a lump sum payment worth less than what you owe in exchange for wiping out the rest of the debt. If you can come to an agreement, it can be a good option, though that's not always possible 

Upsolve Community Member
This might help too! https://upsolve.org/learn/debt-settlement/

Upsolve Community Member
2021-12-23

After bankruptcy settles do you keep your credit card accounts or do they completely go away? Just wondering because if they all stay open I would personally like to get rid of a couple accounts.

14 Reactions

Community Replies:

Upsolve Community Member
They're all closed.

Upsolve Community Member
...and when you get your fresh start and open new accounts, the "aging" of your credit on your credit reports will start over so in the future, if you have a card or two that you don't want to use, don't close the account because your credit scores take into account the AGE of your credit. Good luck, Dillon! :-)

Upsolve Community Member
Hi Dillon, the Upsolve article https://upsolve.org/learn/learn-discharge/ has more information on what you can expect after your debt is discharged. In case you like to keep your eye on the goal. :) 

Upsolve Community Member
I certainly prefer the term "rebuilding credit" over "credit repair" because of some bad seeds that charge big $ for things you can do on your own. My opinion only. Caveat Emptor (buyer beware) and proceed with caution. There are two "Rooms" in this community recently opened for conversations on "Life After Bankruptcy" and "Managing Personal Finances" and we will be addressing rebuilding credit experiences so stay close! :-)

Upsolve Community Member
I had 3 accounts in good standing with low balances that were closed when I filled by the creditors.

Upsolve Community Member
2021-12-31

What happens if I don't file bankruptcy? Can I rebuild my credit even though I have a large amount of outstanding debt?

2 Reactions

Community Replies:

Upsolve Community Member
There are several options to paying off debt and rebuilding credit. Upsolve has an article https://upsolve.org/learn/how-credit-works-and-how-to-rebuild/ that has useful information on rebuilding your credit.  The article https://upsolve.org/learn/what-is-debt-and-how-to-handle-it/ has non-bankruptcy options to settle debt, and there are several other articles in the Learning Center that can help you find a plan that's right for you. Feel free to ask us any questions along the way!

Upsolve Community Member
Hi Blake! Yes, you can learn much about rebuilding credit and rebuilding your credit -- HOWEVER -- there are times where it might make sense to use bankruptcy protection. Check out this article from the Upsolve Learning Center: https://upsolve.org/learn/should-i-file-bankruptcy/. I hope this is helpful! :-)

Upsolve Community Member
Definitely! There are options- what's best for you just depends on your circumstances and preferences 

Upsolve Community Member
Hope that helps!! 

Upsolve Community Member
2021-11-05

Anyone know What the protocol for a car loan debt is when you do not have the vehicle anymore due to mechanical failure years prior?

Community Replies:

Upsolve Community Member
So you had a loan on a car. It broke down and you abandoned the car without informing the loan company? 

Upsolve Community Member
There's information here that might be relevant! https://upsolve.org/learn/bankruptcy-after-accident/ Let me know if that helps, Blake! 

Upsolve Community Member
The vehicle was towed and wasnt worth fixing so I tried to settle the debt with the finance company for less than the total owed and they declined so no vehicle was recovered and the loan was charged off on my credit and they are now pursuing me for garnishment...

Upsolve Community Member
2021-12-13

Observation during my current student loan research: You will find that many media articles on this subject are dated "swipes" from other media typically reporting the Adversary Proceeding is very difficult because it is up to the borrower to prove "undue hardship". That is NOT what I am seeing out there. The pendulum is swinging in our favor regardless of what happens in Congress. As more info about the student loan debt crisis becomes mainstream, judges are listening and learning too. As we wait for Congress to legislate ANYTHING meaningful to address borrowers in dire financial straits, is IMPORTANT you know about the Adversary Proceeding as a collaborative step (separate filing). Read the Upsolve articles found in the Learning Center and referenced here in this community and stay close as more info becomes available.

13 Reactions

Community Replies:

Upsolve Community Member
And what no one ever seems to mention is just how many of these student loan adversaries actually settle in the debtors' favor! 

Upsolve Community Member
I've gotta be careful here because I don't have the source at hand right this minute, but over HALF in a recent time period!


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