Posted by Bob on September 24, 2003 at 07:23:42:
I assume that you don’t have other equity/assets that can be used to pay down/off the credit card debt. That being the case, you could try to negotiate with your creditors both a zero interest and reduced principle deal. You may not be successful, but my view is you don’t get what you don’t ask for. Your primary negotiating point is that the lenders’ alternative is bankruptcy, where they would get little or nothing.
If you are unsuccessful negotiating a decrease, though, I would consider BK, unless you stand to lose something more than just credit reputation for 7 years.