Legal Question in Credit and Debt Law in New York
Deal with creditors OR hide till I can pay?
I want to know if I should contact my creditors (or have an attorney do it) or keep under the radar until I have the money to pay them back.
I owe $100,000 borrowed from multiple credit card companies to finance a television production. I am in negotiations with a network right now. I expect the show to sell in 2006.
If it doesn't sell, I would declare bankruptcy. Otherwise, I want to repay in full.
I do not own a home, I stay temporarily with various friends. My creditors do not know where I am or how to contact me. They do harass my parents however.
Should I let sleeping dogs lie? Or is there an advantage to my contacting them now and telling them that I intend to repay them in full within the next 12 months?
2 Answers from Attorneys
Re: Deal with creditors OR hide till I can pay?
If you do not have a bank account at this time, then credit card enforcers are deprived of their main tool for collection.
A PO Box number would protect your location and make finding you for the purpose of informing you that you have been served difficult. (This is a necessary step for obtaining a judgment.
A judgment is good for 20 years, but a mere debt without a judgment from the court is collectible for only 7 years.
Re: Deal with creditors OR hide till I can pay?
The best thing to do is not to contact creditors.
They can use any statement you make against you.
If you make a misleading statement to them, they can use it tto challenge a bankruptcy discharge.
Stay away, and get rid of the dischargeable debt in bankruptcy.
Jacob Silver
Attorney At Law
26 Court Street
Suite 2511
Brooklyn, NY 11242
http://www.silverbankruptcy.com
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