Should I file for bankruptcy, or go to court?

What is the name of your state? Indiana

Heres my situation. I am heavily in credit card debt. About a year ago, I joined up with a debt settlement company stopped making payments to my creditors, etc,etc. This company has settled 2 credit card debts for me and I have been on this "plan" for 8 months, ending at 12, making monthly payments. ($515.00/month)

However during this whole time, another CC company of mine has been trying to collect the debt, and it has finally came for a judgement in court next month.

Of course I don't make a lot of money and can't pay both of them at the same time. However I"m willing to start pay on the other one as soon as the current plan expires. However they are demanding payments NOW, or the court date continues.

My question is...what is going to happen to me in court? Should I file for bankruptcy? I want to stay away from BK, but I can't afford to make 2 payments at the same time, etc, etc. What should I do?

By the way, I really don't want my friends,family, or employer to find out about these financial problems...

Thanks in advance for any advice guys!!!!

[Ladynred]

You have gotten yourself in a mess by using this 'debt settlement' company I'm afraid. 99.9% of the time they are a scam and really bad news. $515 a MONTH !?? Geez... But, as you have found out, all they do is take your money and accumulate it, taking a fair cut for themselves in the process, and then offer settlements. That will not keep you from being sued, in fact, it could get you sued by others as well.

Whether or not you should file BK is impossible to tell without a complete review of your financial situation. However, the suing CC company is NOT going to wait, they will get a judgment and probably garnish your wages. Then you'll likely find that the $515/mo to the debt settlement people is going to REALLY be a drag on your finances and you'll have to stop paying them too.

If you don't go to court, they creditor will win a default judgment against you. After that, they can garnish wages, sieze bank accounts, and sieze any non-exempt assets they can to satisfy the debt. At the court date, you would likely be sent to try to settle or come to some kind of agreement, but if you are unable to pay on another agreement, then you're stuck with a judgment. Once they send the garnishment order to your employer - well, there goes your wish not to have them know about your $$$ problems.