Is there anyone out there who was unable to pay their credit card debt but also for whatever reason unable to file bankruptcy? Can you tell me what the credit card companies did to you? Did your wages get garnished? Or any property taken? Or were you lucky enough that they wrote off your debt eventually? And if anyone knows if there is a limit where a creditor simply refuses to write it off, that would be helpful. Some of my credit cards only have a balance of $1500, but others have $6000 and $7000 balances. I'd find it hard to believe that Wells Fargo or First North American might write off that large of a balance, but I don't know how much it would cost them in time, effort, and money to take me to court to get it. There are complications that make bankruptcy a poor choice for me, but I have gotten so deep in debt that I can no longer make the minimum payments on my 9 credit cards. I also wonder should I try to continue to pay some of them with lower minimums, or if I'm not paying some, just not pay any? Thank you for any advise or personal stories.
Hrarley, It depends on where you live and, if they have a reasonable expectation of recovering anything in a lawsuit. For example, wages can't be garnished in Tx. or in one of the Carolinas {forget which one}. SOme states don't allow the head of a household to be garnished. The reasons not to file bk may well mean you have some joint assets. It's pretty easy to discover that and what they may do is sue, get a judgement and a lein on the assets and wait and allow the judgement to collect interest. Have you seen a lawyer about your options? Have you though about trying to negoiate a settlement with the cc companies? Sorry, I know I asked more questions than I answered but, until more facts are available, it's hard to know how to ssuggest you proceed.
Harley, because this board is watched, if you want to e-mail me at rxbreed@earthlink.net, I'll be glad to tell you what I did in a similar situation and what has happened thus far.
A close friend of mine was authorized user on a credit card from her credit union with a 4000.00 balance. She filed bankruptcy after the divorce from her husband, and since she was only authorized user on that card, she of course couldnt include it. Her husband was the primary of the acct, he didnt file BK, and hasnt paid it either. Almost 4 years have past, they put a lien on his house, and they are suing him. He wanted to refinance his house a couple months ago, and had to pay for it then before he could do anything. This was with a credit union, so I dont know if its different with other credit cards or what, and that original 4000.00 debt ended up being 6250.00 with all their fees added. Jamee
Keepmine, thanks for your input. I have not tried to negotiate or anything yet, I have just now maxed my cards out and before they were maxed I was able to make the min payments by charging everything and using my cash to pay the cards. Now I need cash to live on and that leaves nothing to pay the credit cards. The reason bankruptcy is a poor choice for me is that I don't have ANY money left. Foolishly, I used up all my savings paying my bills for as long as I could. Now I can't even afford a lawyer to find out my options. I would like to know the garnishment laws in Alabama. And if they can put a lein on my house if there's no equity in it (I recently refinanced, desperately trying to pay off bills and get my house payment lowered with a lower interest rate). So now I owe Household every penny they'd loan me on my house and I MUST pay them, I won't leave my daughter without a place to live. We don't have anything worth anything, but we do have a lot of junk. I worry what would happen to our belongings if we filed bankruptcy. Also, I paid my car off when I refinanced my house. Is my car subject to a lein? It's worth about $6000. Thanks again.
Harley, Go see a lawyer. Most lawyers give free initial consultations. If bk is an option, many will let you establish a payment plan.
Alabama can garnish 25% of your wages after a judgement. Your home and furnishings are exempt. If you have any thing else of value, like other real estate or jewelry or antiques they might be taken if you declared them at retail. (you always declare low distress sale appraisal on all assets in BK) I would suggest,get a $2,500 loan on your car, pay off the $1,500. credit card, DONT USE IT for at least 3 months before filing and 3 months after final adjudication. Use the balance of the $$ to file for bankruptcy. Stop paying on the rest of the cards.This will protect your car from seizure, and eventually let you have a credit card to use for emergencies.
