A friend, deeply in credit card debt, went to a financial counselor. He said that since they were unsecured loans, there was nothing the credit card companies could do to her. Pick one card to keep and pay on, forget the others and change her phone number. Her credit was already ruined for seven years so she had nothing to lose..
2006-08-26 04:44:52 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
I need more information about this situation.
Generally, they can and do sue people for unsecured loans. But how far they can go depends on the state you live in. If you live in one of several states that does not allow wage garnishments, that only leaves them the option of going after property. If your friend has no property, then the counselor might be right. But this is a lot of "ifs".......
You also comment that her credit has been ruined for seven years. This implies that the credit cards debts are old and may have gone over the Statute of Limitations. In that case they can't sue for the debt, so again your counselor is correct.
But overall, the advice is terrible. I hope your friend has done her research to protect herself.
2006-08-26 05:04:27 · answer #1 · answered by Anonymous · 1⤊ 0⤋
That is not true. The credit card companies can still sue her if they choose. I think that financial counselor gave her some pretty bad advice. The point of the counselor was to help her get out of debt. She will still have bad credit and this could affect her if she ever wants to buy a house. She should contact the better business bureau and find a reputable debt company. There are companies out there that will negotiate with the credit card companies and than they will pay off her debt and she owes them one monthly payment which will help reduce her monthly payments.
Another option is that she can go to a bankruptcy lawyer. Go to the ones that give free initial consultations. I suggest visiting several. They can also help her find a solution to her debt problems.
But to pick one credit card and pay it off and switch her phone number is the worse advice I have ever heard.
2006-08-26 04:54:25 · answer #2 · answered by butterflykisses427 5 · 0⤊ 0⤋
Please go through the terms and conditions and there is a provision to freeze all your bank account and other credit card facility if any if the concerned credit provider proved to the court and get the proper orders from them and then your friend will be in real trouble.I would advise you to start paying something to avoid further action by them.
2006-08-26 04:59:20 · answer #3 · answered by shri 6 · 0⤊ 0⤋
not true
creditors will find remidies, and the one she keeps will also find out and cut her off
2006-08-26 05:09:40 · answer #4 · answered by capollar 4 · 0⤊ 0⤋
Doesn't appear to be
2006-08-26 04:51:07 · answer #5 · answered by wisener 7 · 0⤊ 0⤋
sure
2006-08-26 04:50:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋