Today I was going through my bankruptcy files making a to do list to see was needed to wrap up the week. As I was going through the files I got a call from a credit card company on one of my cients that was preparing to file a chapter 7. The bank was informing me that the client was 90 days past due and that he needed to make a minimum payment of $327.00 on a $5500.00 balance. I asked this credit card company (Bank Of America in this case) how much interest he was being charged, I was told 26.75 %!! Now to most of you readers out there a credit card with this kind of interest is not really a shocker. What was shocking is the fact that I informed them that I was an attorney and that we were proceeding to file a chapter 7 bankruptcy within a few weeks.

I informed the creditor that my client was interested in lowering his rate to around 7% percent and that the likelihood of filing a bankruptcy would diminish. The creditor told me there was nothing he could do and asked when I would have a case number of the filing. I have had some success in negotiating lower rates for clients on credit cards and I have seen the above scenario more than 70% of the time. When you are in over your head in credit card debt and you have really tried to negotiate and make your payments but just can't survive the payments, then I whole heartedly will push for bankruptcy rather than debt consolidation, because sometimes you're better of starting fresh. You probably paid the credit card off ten times over with that kind of interest! If the credit card companies don't feel guilty (THEY DON'T!) than neither should you. For more information on whether or not you qualify for a chapter 7 visit
http://www.bankruptcysupersite.com