Q: I want to know if credit counseling can help me if I had originally filed for bankruptcy, and the court dismissed the case. Now, I’m responsible for making the payments to the creditors myself. Will the creditors accept a payment plan?
A: You should definitely contact the creditors to see if you can work out a repayment plan. The last thing you need is for them to get a judgment and attack your wages. But, don’t promise a monthly amount you can’t pay.
Better yet, if you can save up enough cash, you could offer to settle your debts for less than you owe. Often, creditors will accept a cash settlement, because that’s a sure thing, as compared to waiting for payments over the long haul.
If your creditors aren’t willing to work with you, go to the website of the National Foundation of Credit Counseling and make an appointment with a credit counselor. The nonprofit agency can help negotiate with your creditors to set up a debt payment plan.