My sister has about $30k of credit card debt. She also has about $40k of student loans and is under water on her house. My sister wants to file for a Chp 7 only on the credit card debt as the student loan debt is not dischargable in a Bk Chp 7 and she wants to keep her house. My sister says that the credit card company is trying to garnish her wages and she doesnt want to loose her job so she wants to file for a BK; I tried encouraging her to work out a payment plan with the credit card company so that she would not have to file for a BK Chp7, but she is insisting that a Chp7 is her best way out of the mess.

Is there a way to renegotiate a settlement with a credit card company without having them sue or garnish for collections?

Have her bankruptcy attorney contact the credit card company and threaten that if they dont negotiate that she will file for a bankruptcy chapter 7.

Each credit card company is different and there is no guaranty that any one credit card company will cooperate and negotiate a settlement. It really depends on the credit card company, the collections agent, if its been assigned to a collections firm, the size of the debt, etc.

I passed your recommendations along to my sister. Thank you for the assistance. The problem is that the bankrupcty attorneys want her to file bankruptcy and all she wants now is to restructure her debt without going the bankruptcy route. So, now we are considering one of the debt consolidation companies and greenpath. Have you delt with them before? Can you recommend a company to help?