ABA Family Legal Guide

Consumer Bankruptcy

Introduction to Bankruptcy

Alternatives to Bankruptcy

Is there anybody in particular I should contact about these options?

Yes. If you are behind on your payments, the collectors for each of your creditors may already be calling or writing you. You might be more successful if you phone each creditor, ask for the collection department, ask and note the name of the person you talk to, and explain your intent to repay the account and your need to stretch out the number of monthly payments and reduce the dollar amount of each payment. You might offer to come to the collection department office to discuss your situation. Ask each creditor to agree to a voluntary plan for the repayment of your debts.

When dealing with creditors, ask them to reduce late fees and interest. Get all agreements in writing before making payment. If you reach a settlement for a single payment, when the payment is made, be sure to indicate on the face and back of the check that the payment is "in full, final, and complete satisfaction of account no. 000x." Never give creditors information that would enable them to directly access your checking account, and make sure you maintain control over the payment.