Legal Question in Credit and Debt Law in California

Bankruptcy vs. Ignoring Credit Card Collectors?

I am considering Ch 7 Bankruptcy. I have about $50K in credit card debt. The collectors have been calling, and I've referred them to a BK attorney, but I don't want to file if I don't have to. I don't have any additional cash flow, but I can pay my mortgage and car loan just fine, albeit with no extra $ each month.

Can I just ignore my credit card debt and expect it to go away like a foreclosed home? What happens if I don't file Chapter 7???

There's got to be another option!! I've got friends that have filed, but they've got $100K - $200K in unsecured debt and lived way beyond their means, but that's not my scenario. I just had a change of employment and have cut back, but can no longer afford making the credit card payments.

please help. thanks!!

Asked on 1/08/09, 5:05 pm

2 Answers from Attorneys

Robert Mccoy Law Office Of Robert McCoy

Re: Bankruptcy vs. Ignoring Credit Card Collectors?

Credit cards do not just go away like a mortgage. The credit card companies often sue. Once a judgment is obtained, your bank account can be seized and your wages garnished. In order to determine whether you should file bankruptcy you should ask yourself where you want your credit score to be 3 years from now. If you do not pay your credit card debt or file bankruptcy, negatives will continue being reported on your credit report. If you do not care about your credit score 3 years from now, and you do not need a bank account, and you do not care if your wages are attached, then you may not need to file bankruptcy.

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Answered on 1/08/09, 5:21 pm

Robert L. Hyde Hyde & Swigart, Attorneys at Law

Re: Bankruptcy vs. Ignoring Credit Card Collectors?

Please give us a call. We have a great deal of experience dealing with credit card debt collectors and lawsuits. Our experience is that most of these credit card lawsuits can be dealt with very quickly, cheaply, and very successfully. The reason they're threatening to sue is because they're bluffing. If they could really sue and win they would.

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Answered on 1/10/09, 12:43 am

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