Credit Card Debt

by Linda
(Reno, Nevada)

I am self employed and have several credit cards with a debt totaling $80,000. I am considering bankruptcy. Can the personal and business credit be separated in the bankruptcy. Also can they be negotiated, if so how do I do it.

Comments for Credit Card Debt

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Feb 08, 2010
settle business and personal debts
by: Gerri

Linda,

Thanks for submitting your debt collection question on our Q&A page. I imagine it's extremely stressful to be trying to figure out how to handle your credit card debt.

Depending on the debt, and your business structure, you may be able to file bankruptcy personally and keep it separate from your business - or vice versa. This is a case where you definitely should talk with an attorney as there are so many different variables involved.

As for settling the debt, that also depends on a number of factors such as how much (and how quickly) you can come up with money to settle; how much you owe to each creditor and who those creditors are (some or more litigious than others), and whether you will be responsible for taxes on settled debt (and if you can afford to pay those taxes). I can tell you that I have talked with consumers who have settled far more credit card debt than you have - so it can be done.

again, because there are so many variables here, I recommend you do two things:

1. Get a free consultation with a bankruptcy attorney who can help you weigh your options.

2. After you have talked with the bankruptcy attorney, if you still want to try to settle, talk with a settlement company. You can learn more about settlement by listening to our debt settlement podcast.

Please keep us posted, OK? We are happy to answer additional questions if we can be of help.

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