2006-10-06 09:33:38 · 6 answers · asked by johnnybasebal 1 in Politics & Government ➔ Law & Ethics
They will send you a notice that they have jacked up your interest rate to the maximum the law allows, which is I believe 24%. Then they will send you a couple of nasty letters, and maybe a few phone calls. Then they will turn your account over to a collection agency, and the collection agency will probably mercilessly call you at all hours of the day and night until you put yourself on the national do not call list. Last but not least, your credit will be ruined for 7 years, same as a bankruptcy, and you will have to contact the credit reporting agencies at that time to remove those entries from your record. BTW, the minimum figure where a bankruptcy is called for is around 30K or so.
2006-10-06 09:48:07 · answer #1 · answered by The Oldest Man In The World 6 · 0⤊ 1⤋
hummm. the question is "why"? Loss of job? No money? unforseen other, and more pressing debts? amount owing? If you are really in a bind, you may well advise the credit card company of your dilemma and try to arrange some sort of payment schedule. Whatever you do, do not ignore this. Do not wait until your debt is referred to a collection company or you are actually sued! Contact the credit card company as soon as possible and advise of the problem. If you get a someone who doesn't seem to recognize or appreciate that you are in trouble, ask for a supervisor. You will want to deal with someone who is looking out for you, as well as their company. Credit card companies do not like the idea nor the expenses involved in suing. Even if the matter has gone to a collection agency, the credit card company loses, because they have to pay the collection agency. If the matter goes into the courts, they have to pay an attorney fees, filing fees, etc. (and those fees are added on to the amount you owe to the credit card company.) If a payment schedule is arranged, make certain that you do NOT offer to pay anymore than you can afford to, even if it is only 15 or 20 dollars a month. Actually, any amount is better than nothing.And the credit card companies just want their money.
Bankruptcy is your very last resort. First, the laws have changed and you can no longer wipe away credit card debt. Secondly, you do not want this Bankrupcy on your record. even if it is only for 8 years. Thirdly, you will need a Bankjruptcy attorney (another added expense) especially considering the new laws and the fact that it would be extremely difficult for you to do a Bankruptcy petition on your own.
Good luck.
2006-10-06 09:55:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most companies have a service where you can work out a pay ment plan. I was $25,000 In credit card debt( 5 cards) & did this, The company got the card companies to drop the late & over the limit fees (about $1,100) & droped the interest rate. I pay a amount every month & they pay my cards. I only owe about $2,200 on two now. This service cost me $25.00 amonth. The payment I send in is about a third what I was paying befo. It is taking about 5 years to do this but I do not get the phone calls or letters anymore. Also you have to get rid of your cards & can not have any new ones until the bills are all payed.
2006-10-06 09:55:16 · answer #3 · answered by BUTCH 5 · 0⤊ 0⤋
You go into bankruptcy & the Courts dictate your financial life until you've resolved your debts. Don't spend money that you don't have.
2006-10-06 09:35:50 · answer #4 · answered by captain2man 3 · 1⤊ 0⤋
it goes on your credit..you do not go bankrupt..but i guess that depends on the state your in??
2006-10-06 09:47:59 · answer #5 · answered by sherry p 2 · 0⤊ 0⤋
You go bankrupt.
2006-10-06 09:43:52 · answer #6 · answered by Butterscotch 7 · 0⤊ 0⤋