Unsecured credit debt
I have several credit cards all paid as agreed with no late fees. I am 72 yrs old with a 12 yr old son in my custody. I now cannot get a job and my only income is social security. Do I have to file BK or can I just stop paying with an explanation. The only assets I have is my home which is worth less than is owed on it and also it is hometeaded. Can you please help?
1 Answer from Attorneys
Re: Unsecured credit debt
The concern with just letting the credit cards go is that you will be subjected to collection calls, then assignment of the debts to collection agencies who are even worse than the original creditors, and eventually you will be sued for collection of the debts. After the creditors get a judgment, they can attach wages and income, levy against all assets such as bank accounts, vehicles, personal property, etc... You can exempt some of those assets from levy, but you need to review with an attorney if you have anything that might be at risk of being taken by creditors to satisfy the obligation. Bankruptcy may be a better option because it would permenantly erase those obligations, and give you a fresh start. I would strongly suggest contacting a bankruptcy attorney such as our firm to review your options.
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