Comments on: Is Debt Negotiation viewed as a Chapter 7?

By: netdebt1

netdebt1 — Tue, 24 Feb 2009 11:19:39 +0000

Any type of Debt management, CCCS, Negotiation, or settlement is going to have some type of effect on your credit. None of them however are as bad as a Bankruptcy. Your best best best is to consult some professionals.
has a free life online chat where you can ask them questions.

By: Bill C

Bill C — Sun, 22 Feb 2009 16:00:29 +0000

Most, if not all, “debt negotiations” are rip-offs. They charge very high up-front fees, then charge you a monthly fee for continuing to work for you. Also, there are a lot of credit card companies that will not deal with them – they will only deal with an attorney.

My suggest that you get a consultation with an attorney who handles consumer credit issues. You can get a referral from your local county bar association. You might also be eligible for free legal help from your local legal aid office.

By: Richie Rich

Richie Rich — Sat, 21 Feb 2009 23:20:26 +0000

From my own dealing with credit card companies and debt collectors, CCCS type services are WORSE than filling bankruptcy.

If you file bankruptcy, it usually means you ran across hard times and just couldn’t do it anymore. It also means you can’t file for about 10 years and you are willing to make minimal monthly payments till your dead.

CCCS means you can’t even handle your own budget and are even less likely to pay than someone who filed bankruptcy.

If you are going to negotiate for a lower amount for your credit cards, agree ahead of time on how to do it WITH them directly. Many times you can get a lower balance and still have them mark it as “Paid in Full.”

For the US, once you close an account, it stays on your record for 7 years from last payment. While the account is open, it’s a 2 yr revolving issue. This is a good thing. If you have a few late payments and want to wash them off, keep the account open and current for 2 yrs….it rolls off like it never happened.

By: aylatroy

aylatroy — Sat, 21 Feb 2009 05:33:02 +0000

Debt negotiation and bankruptcy are 2 very separate things. Either one will affect your credit and the bankruptcy will stay there for 7 years. Credit agencies love bankruptcy people because they know you can’t file again for quite a while, and will be forced to accept what ever outrageous interest rate they are going to charge you, and they will love slamming you with late fees and what ever else they can tack on, but bankruptcy isn’t like it used to be, even though it might take a few months to get yourself any line of credit, its next to a fresh start. Debt Consolidation/negotiation companies are as varied as there are days in a year, not all are good ones, so make sure you check with the better business bureau and be sure your picking one that has a good reputation. The accounts may be “shut off” and you may not be able to use them again, be sure to ask lots of questions about how your credit may be affected either way. Being informed is always a good idea!

Good Luck!

By: Aubreigh S

Aubreigh S — Thu, 19 Feb 2009 14:29:18 +0000

I’m not sure. Actually, you better check my source. Alright.

By: T

Thu, 19 Feb 2009 11:03:25 +0000

A lot of CCCS charge you a fee (usually a percentage of the total amount of debt you owe) in lieu of negotiating with your creditors to lower your balance. In my opinion, not paying at all is just as bad as negotiating. When you don’t pay, you don’t have to lose any money. When you pay, you lose out on your credit score. I had an account negotiated, they reported it as “Settled for less than the full amount owed”. That makes you look pretty darn bad…. and a few grand later!

CCCS on your report will read like this:

Say you have a visa… it will say under the payment history:

Account is managed by a CCCS. Pays as agreed.

It looks to creditors like you had trouble managing your accounts, but you were seeking help and were responsible in attempting to repay. I say once you get so far out of control, your credit suffers no matter what you do.. even if you don’t go through CCCS and pay everything in full, they still show that you were late, over limit, missed payments, etc.

I don’t believe it’s viewed as Chapter 7, because you’re not filing Bankruptcy, you’re working with your creditors to make your debt more managable. With Bankruptcy, you pretty much say, “I give up” on your credit report.

Try not to open any new accounts. Your credit is probably pretty tarnished from whatever damage you’ve done already. Good luck with whatever you choose.