Default on Credit Card

Posted by JP (206.64.99.83) on July 08, 2004 at 11:26:25:

Here's the situation: I have about $6,000 on a Chase credit card that built up through college for lack of other resources. Was unemployed for about 6 months and had no way of paying. Just got employed last month, and I get a call from Chase saying my account has defaulted and they're threatening legal action. He said they'd probably accept a 50% payoff or resume payment plan with a $1,500 "down payment." As much as I'd love to strike a deal and do a 50% payoff, that would simply be impossible, and so would a $1,500 down payment to resume a monthly payment plan. What are my options? Should I consider bankruptcy? 7 or 13 - which is better? I've heard a default on a credit card is pretty much just as bad on a credit report as a bankruptcy, and, in fact, a past bankruptcy may be seen to be a better risk for a future creditor than a default. Is this true? Live in IN, 23 yrs. old, up to my chin in debt. However, I have been paying on my student loans faithfully, and also have another $3,000 in debt that was consolidated. That makes roughly $10,000 in credit card debt. Don't know what to do.

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