Question

a person has three credit cards with very large outstanding balances and is unable to make payments on any of them. which action should the person take?
notify a credit reporting agency in order to avoid a late fee.
notify the credit card companies in order to negotiate a new payment plan.
contact the internal revenue service in order to avoid paying income tax this year.
file for bankruptcy in order to maintain ones current credit score.
question 4
when a person declares bankruptcy that fact will appear on the persons credit report?
for a 10 year period.
for a 3 year period.
until the person is able to receive a new credit card.
until the person repays all debts owed.

Explanation:

• For the first question:
• Notifying a credit - reporting agency won't avoid a late fee. The credit - reporting agency's role is to report credit information, not to handle payment - related fees.
• Contacting the Internal Revenue Service (IRS) to avoid paying income tax is illegal if the person still has taxable income. And it has no relation to credit - card debt.
• Filing for bankruptcy will negatively impact the credit score, not maintain it.
• Notifying the credit - card companies to negotiate a new payment plan is a reasonable step as it can potentially lead to more manageable payment terms.
• For the second question:
• According to credit - reporting rules, a bankruptcy declaration appears on a person's credit report for a 10 - year period. It is not for 3 years. Also, it doesn't depend on getting a new credit card or repaying all debts (as bankruptcy may discharge some debts).

Answer:

• First question: Notify the credit card companies in order to negotiate a new payment plan.
• Second question: for a 10 year period.