Alternative to bankruptcy needed

[sarge12]

Many times I see people with no reasonable alternative to bankruptcy even though their overall amount of debt would be manageable if the debtor could consolidate their debts. Problem is no creditor will lend them the money because by then their scores are super low. It is high time that cc issuers need to come up with better alternatives, and it would be in their best interest to do so. Say a debtor owes 30000 dollars, but it is spread across 25 credit card and finance company accounts. Banks and Finance companies could set up a cooperative account and teporarily all credit cards except one with maybe a 1000 dollare limit be turned over to be managed by this accounts manager. The credit card companies could agree to a flat 10% apr, and the debtor would pay say 600 dollars a month in 1 payment until all accounts are paid in full. Each creditor would recieve a monthly percentage of that 600 dollars that is proportional to the percentage of the 30000 was owed them. The debtor in exchange is allowed us of only the 1 credit card outside of the agreement until all other debts are paid off, and not allowed to create new debt. During this time all cra reporting is frozen. Upon completion of program all accounts become unfrozen and all cards renewed at previous levels and all prior debts show satisfactory payment. Basicly it is a forced consolidation loan the debtor would otherwise not qualify for. The creditors would be better off because they would get their money back, albeit at a lower interest, but it would be better for them than BK discharge. The debtors would be better off, because it would allow them to have use of 1 card, and completion of program would prevent the destruction of their credit scores. They simply need better, smarter ways to avoid bankruptcies in cases that could be prevented by a consolidation loan that the debtor simply can not qualify for.