The ideal solution is to communicate with those you owe money to.
If you owe people money, they have probably been phoning you. The worst thing you can do is to avoid communicating with them. They will continue to disturb you until they have a chance to speak with you. Pick up the phone and tell them the truth. If you tell them, ""Hey, I'm paying to keep the electricity on and food on the table first, and then I'll be able to pay whatever I can toward what I owe you,"" they may be more courteous. This occasionally alters their tone slightly. If they believe you are on the cusp of bankruptcy, they will fight tooth and nail to extract as much as possible from you. The term for this is debt settlement.
Credit is negatively impacted by debt settlement, but it is likely that you are already harming your credit through late payments. Because of this, they are willing to work with you to get what they can instead of taking the risk that you will file for bankruptcy, leaving them with nothing and you with poor credit. The optimal course of action is to incur some credit damage, but pay what you can. Occasionally, they will substantially reduce the amount you owe.
Make an effort to make these payments on time and in full. If they are aware of your efforts, they are less likely to contact you for additional funds. When there are no immediate repercussions of declaring bankruptcy, there are long-term benefits.
" - https://www.affordablecebu.com/
