To some people, $10,000.00 of debt might not seem like a lot. But if you are struggling to make ends meet, and don’t have any money left after paying for your essentials, then you’ll never be able pay off $10,000.00. What makes it even worse is that the creditors may be able to sue you and garnish your wages. If you were having problems before, even a small garnishment could result in you being unable to pay your rent/mortgage, or car payments. If you don’t have anywhere to stay or don’t have a car to get it to work things can get worse very quickly. In this situation, it would make a lot of sense to file bankruptcy and get rid of the debt.
Read MoreWhat is a charge off? It’s really just an accounting entry by a creditor. After a few months of nonpayment, a creditor will determine that they are unlikely to receive any further funds and will stop posting interest and penalties to the account. This does not absolve the consumer’s legal liability to pay the debt.
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