I had about 5 credit cards and have defaulted on them totaling about $28k due to financial hardships this past year. Prior to this I've had great credit. I am now unemployed and currently looking for employment. I am now receiving collection letters from numerous collection agencies as well as phone calls. I have just received a letter today (hudson and keyse) with a court summons. I am able to borrow some money from close family to help me with this and wondering which is the best way to go regarding my problem. I am in NY. Thank you.
My advise: Contact a bankruptcy lawyer to see if you qualify for a Chapter 7 - a total wipeout of all your credit card bills. If you have a car loan try to reaffirm that loan so you keep your card. Your first consultation should be for free.
Depends--what kind of job are you looking for? A bankruptcy when you're job hunting may not be the best thing, especially if you're in any kind of sensitive position or one involving money.
But easier to explain. A lot of negative accounts on a credit report would indicate someone being really irresponsible and possibly a risk in a sensitive position or one involving money. Bankruptcy is the legal way to bail yourself out of debt. C'mon banks are begging Monica Lewinsky style for bailouts and getting it. This is the second time since 2005 (new bankruptcy laws) that the banks are asking to be bailed out. Those 2005 laws made it really hard/almost impossible to file Chapter 7s.
Stay off the phone with collection agencies. Send the CA's debt validation letters. Read through the board. then after you read it ask more specific questions. You'll have a better idea for a gameplan. there are alot of knowledgable people on this board, when you don't know, use the SEARCH function, then ask if you still cant find it. Alot of us have been in the same situation. But make sure you READ, you'll find out that you have more power than you think you do right now!
