Originally Posted by uglygoat
if your credit is already shot, and you are in over your head, why wouldn't you just file bankruptcy? i'd rather pay a lawyer 2500 bucks and let the courts handle it, than **** around with creditors, or third party scammers.
Bankruptcy has a lot more of legal and financial ramifications than that: good luck finding/keeping your job afterward if you lose your car (and you probably will) and no landlord wants to deal with you because of your poor credit rating. Bankrptucy follows you around for a very, very long time. Some debts also aren't erased, such as federal students loans (wich many, many people are now burdened with due to college being the new high school). You can't also exactly decide "f&?% it, I'm filing", you have to meet the criterias.
If you are a young guy who made a lot of mistakes, maybe. But for a lot of people, bankruptcy simply is not a viable option, unless they plan to make a living out of filing every 15 years. The thing is, the people who rack up 12k of credit card debt are not exactly the people who are most business savy and willing/able negociate with creditors themselves to psuh every little edge so they can to save money. So they turn to the guys who make commercials daily who may or may not be legit.
Same thing for the ads about computers for people with shot credit. Wow, I'll get some crappy osbolete thing for 60 50$ monthly payments ! Sign me up now !