Pay My Bills For Only 5-10% Of What I Owe Without “Bankruptcy”

The thing most feared by creditors is that you actually will go bankrupt. In fact, even with the current bankruptcy laws, they still stand to lose everything you owe. By failing to pay your debt for a period of more than 6 months, you account will be written off as a loss. This is known as a “profit and loss write-off” or a charge-off” which means the debt can’t be collected. In fact, standard accounting practices dictate that any debt unpaid for 6 or more months must be considered uncollectible. At this ppoint the debt is either sold or transfered to a collection or legal department.

Now that your debt is considered unclollectible, you can contact your creditors and offer to make a settlement. Most worry that if they don’t except something, they wont get anything, and are quite open to making a payment arrangement. They may ask for an accounting of your financial picture to back up your contention that you can’t pay them more than 5-10 percent of the debt (or 40%). Your not obligated to comply, but some sort of written response may speed up the process of accepting your your terms. Mind you, this is not a guaranteed system, but it is quite common to make settlements such as this.

*God Speed*

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