What recourse does a unsecured creditor have?

Question

As per my previous question, we're having some serious financial issues, as follows:

- I am working full-time but my wife is currently looking for a job and so am I.

- We have about -100K (negative equity) in our home - thanks to what people are calling predatory lending practices.

- We have about 100K in unsecured credit card debt we have accumulated over the past 3 year - since she has been out of work, and at this time, do not have any savings or any other means to pay them. 'They' keep calling continuously, and I have also received a couple of collection notices from local law firms.

- I have spoken to the CC companies but they won't do anything unless/until I am able to make some payment which I have no means of doing now.

- I consulted with a couple of attorneys a couple of months ago, but they also want $$$ up front ($1500 - $3500) and have been trying to see if I (we) could do.

- I am very concerned about what these people can do.

Need advice please!!!!!

Answer 1

IT DEPENDS ON WHAT STATE YOU LIVE IN. Unsecured ceditors can make your life real difficult. Especially when you owe alot. But, you are not alone -- Many are having huge problems like this now. But your #'s are very big so you probably need to have an attorney represent you - if I were you I would borrow the $ from a relative and pay the attorney - but check the attorney out THOUROUGHLY and do alot of reading a great website is www.creditboards.com .
Check with your state attorney general's office as well - sometimes they may be able to help. As far as the creditors, the new bankruptcy laws make it less difficult to continue to come after you. Read up on the (FCRA) Fair Credit Reporting Act and (FDCPA) Fair Debt Collection Practices Act. This may help you. Also pull your credit reports and see whats being reported now - you can get your report free once a year.
The Creditors/collector have to follow specific rules and laws.
The bottom line is to work with them if you can - if you can not try to use the consumer laws to your benefit see the FCRA and FDCPA listed on the FTC website you may have some recourse.
Most importantly dont give up! Just keep trying and God willing you and your wife will find great jobs and an excellent attorney and work things out with your creditors - best wishes!

Answer 2

How can you get yourself into such a financial mess? Didn't anyone ever advise you to live within your means? Don't blame predatory lending practices for your dilemma. Don't blame credit card companies for extending huge amounts of credit . Looks as though you lived high off the HOG. And the only out you have is to declare bankruptcy and screw everybody!! you are a real responsible citizen of the community!!

Answer 3

The first thing you should do is get your free credit report from annualcreditreport.com or call them toll free @1-877-322-8228 to request all 3 credit reports free of charge. Review your reports and make sure all charges are on there . Then call the Bankruptcy Court in your state and see if you could file on your own, There are new laws now so i'm not sure you can still do that.

Answer 4

Your creditors can seize your personal assets, bank accounts, or garnish your wages. Your best choice is to file for bankruptcy and have a fresh start. If you did not lie to obtain credit from your creditor, you shouldn't have any problem. Good luck.

Whether or not your debt is secured has nothing to do with your liabilities. However, secured creditors do have priority over unsecured creditors.

Answer 5

Depending on the state you live in, they can file for judgement, perfect a lien, attach salary and perhaps even bank accounts.

You might (and I never suggest this) want to file for a bankruptcy reorginization

Answer 6

What recourse does a unsecured creditor have?

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