The things is am a girl without a job an owe about 20k in all kinds of credit cards even from department stores...I been paying for 2 years now but nothing is going down now I just can't pay them any longer...but am worried about my mom's money cuz I open her a savings account on my name since she can't do it...what will happen if I stop paying, would I go to court or will they harras me or even take away any money from a bank account under my name.....Pls HEEELP!!
2006-09-13 21:03:23 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
First, don't consider bankruptcy. There is no such thing as 'starting over' with bankruptcy. It leaves a huge black spot on your credit for 10 years!
Do consider debt consolidation. There are non profit companies that will help you. i.e.: http://www.consolidatedcredit.org/
Or...
Call the credit card companies. Tell them you are considering bankrupty, but see if they can lower your interest rate and possibly remove the interest from what you owe. They can also cancel your line of credit and you can keep paying.
Most companies will work with this option. Cancelling the money they make from interest is always better than having to write off the debt. They prefer to get some money instead of none.
2006-09-13 21:16:09 · answer #1 · answered by Katie N 4 · 1⤊ 0⤋
Ignore the spammers above that are plugging personal sites (their comments will be deleted) The judge and credit agency are unlikely to forgive the debt unless it should turn up that your bills are the result of extreme medical expenses or similar hardship (and even that would require bankruptcy). Credit bills over the last 4 years that show predominately lifestyle or leasire items (drinks at bars, fashionable clothing and so on) will not help your case. 3 things I would do: First: Get the help of a licensed psychologist or physician, if you are not already seeing one. Pleading mental distress with a "self diagnosis" will ony hurt you, as you have no credible facts to back up your condition other than your own words. Second: If you are intent on fighting this, get a lawyer. Most will offer some level of consultation on what your options might be, but will not provide significant representation. After talking it over, decide whether it's worth it or not. Third: If you don't want to fight it - Call the company. Try to work something out; They might be able to recommend some consultation on how payments can be arranged that satisfy you and them. If you're a person of good character, the prospects of jail time are minimal. Most likely, you're credit will be ruined for the next few years and you will be put on a debt restructuring plan. As for your car, bankruptcy laws (if you can succesfully match the requirements) will allow you some relieft to protect posessions (such as your car). But don't take my word for it - Talk to a real lawyer. Just be honest, don't lie...If you do, you'll only make the situation worse.
2016-03-27 00:47:35 · answer #2 · answered by Martha 4 · 0⤊ 0⤋
Different states have different rules for garnishment, except for student loans which can garnish anywhere and everywhere. But, for instance, Texas won't allow garnishment from your paycheck. Other states do allow with Nevada being one of the worst.
The thing is the credit union. They operate outside the banking laws. At their whim, they can lump loans, checking, savings into one account and then call it a loan, or a checking, or a savings account. You won't find a single lawyer with his money in a credit union.
The Bush Administration has made it where credit card debt is for life, it never goes away. The laws have changed. It does take a bankruptcy lawyer to help you out of the quagmire if you choose bankruptcy.
Otherwise, you can call each credit card company, tell them to freeze the credit accounts (they stop charging interest) and agree with them about arranging a payoff schedule.
2006-09-13 21:21:25 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If your past due accounts are referred to collection agencies within a year:a judgement can be placed against you in which the companys are permitted to seize your bank account and garnish your wages. I think they are allowed only one garnishment at a time. If you have several outstanding Accounts,upon completion of payment,the other creditors will immediately follow.
How did you apply for credit if you had no way of repaying the debt. You have 2 alternatives: You can contact each Credit Card Company and tell them that you are experiencing extreme economic hardship. Some companies offer hardship programs.
They may close your account and you wil not be able to make any future charges. In addition, you may never be able to establish an account with them. Some companies may or may not charge late and over-the-limit fees which are $29-35 per fee per month. So your credit card statements would reflect monthly charges ranging from $58-70.
This will probably drive you insane. It sounds like your uncontrollable debt is starting to bother you now.
I suggest that you consider filing Bankruptcy.
This will remain on your credit report for 7-10 years but at least you can rest peacefully at night and have a fresh start.
Most people who file Bankruptcy receive new credit card offers to reestablish their credit within 6-12 months after filing.
You may contact We The people. They will assist you in filing for $400.00. If you decide to file for bankruptcy, Student loans will not be forgiven.
2006-09-13 21:29:33 · answer #4 · answered by nubianbx 2 · 1⤊ 0⤋
There is such a thing as garnishment, but it's hard for credit card companies to do. Your debt will end up hurting you in the long run, however, because you will not be able to get a mortgage, you won't be able to get a car loan (At least for below 20% apr) or any other financial loans.
Your best bet would be to consult a lawyer and consider filing bankruptcy while you are still young, as it will remain on your credit for 7 years at least, but, in the end it will relieve you of a lot of burdon which you cannot cope with.
Talk to a lawyer, it's your best bet.
2006-09-13 21:08:48 · answer #5 · answered by iswd1 5 · 2⤊ 0⤋
If you have a mortgage and at least $10,000 in other debt check out: http://www.NoDebt4U.org
This company gets rid of all your debt, including your mortgage in about 9 years. No upfront fees. Does not mess up your credit. You can get a free 6 page debt analysis to see how it will work for you before you get on the program.
If you don't have a mortgage or don't qualify for the program you can purchase their Money Mastery Kit. It is a do it yourself program.
2006-09-14 15:15:29 · answer #6 · answered by brendalutoo 2 · 0⤊ 0⤋
Credit card companies can seize accounts in your name. You should really consider starting over with bankruptcy.
2006-09-13 21:07:38 · answer #7 · answered by San Diego Art Nut 6 · 1⤊ 0⤋
~ they may not harass you in any way
~ they may not call your relatives, your employer, you at work regarding the debt.
and you might go to court if you fail to pay the cc in certain time (usually they will send you notice several times, if you still fail to pay, they will send you a court notice (you have to pay for the court fee too).
If you lost in court, they may take your salary or something valuable from you.
You may apply for bankruptcy (I don't recomend this thing) or you could go to some debt management, which allow you to pay all in one (your cc/bill combined) in one account for short or long period time.
Talk to your lawyer first! Good luck!
2006-09-13 21:12:10 · answer #8 · answered by booboobooboobooobooo 3 · 1⤊ 0⤋
you need to call a credit manager, they can take everything away from you but if you deal with a credit manager they are a go between between you and the creditors, good luck
2006-09-13 21:07:28 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Credit Cards are insured loan, they can't take any cash from you...
2006-09-17 17:48:48 · answer #10 · answered by Mimi 4 · 1⤊ 0⤋