My question involves collection proceedings in the State of: California
I am out of job for last 9 months & not sure when I will get one. My bank balance is 12K but I have a credit card balance of 5K. One card is from same bank but other from a different one. Every month I am paying only the minimum due balance on credit cards and also interest (since I am not paying in full)
a. Can this situation qualify for debt settlement of 5K ?. If yes what should I do ?
b. Is there any way I can avoid paying interest charges or ask credit company to reduce my balance if I am ready to pay it in full (usually I don't think they do)
c. If I stop paying even the minimum amount due, will it go to Collections ?.
d. What is out of scope for Collection agencies ?. I think they can look into or get the money from my bank account but what if I transfer my balance to my spouse's account. Only her name is there on the other account, though it was opened based on my credit score, as my spouse also doesn't work. She is disable & her disability only is supporting expenses of both. Can collection agencies also poke into her account and try to ask or get money from that one
e. Making the situation worse, my wife is considering to get divorce from me. Can the above scenario be still valid ?
....Lots of thanks