Results 1 to 2 of 2

Hybrid View

  1. #1
    Join Date
    Sep 2005
    Posts
    13

    Default $35K In Credit Card Debt

    My question involves collection proceedings in the State of: Texas

    I have this Amex card with a 40k limit and it currently has a 35k balance. Some time ago I probably missed a payment and the interest rate is now somewhere around the max I am sure at about 28%. This card and balance has been a thorn in my side for so long that I am now ready to get drastic with it. I make enough to cover the minimum payment only which is about 1200 each month, but obviously I am getting nowhere with that kind of payment plan. I have called Amex in the past and they refuse to work with me at all. If I could lock the interest rate to something reasonable, close the card and fix the payments, I could afford to probably pay it off in about 4 or 5 years. Nobody will give me a loan for that amount on an unsecured loan. I don't have enough equity in my house to get a home loan nor do I have anything of value that I could use to secure the debt. So I am left with two actions, either bankruptcy or court. I suspect they will probably take me to court and sue me since the balance is so high. If I default the loan they may or may not work with me and offer me a plan, but I wont know until I default the loan. I would be afraid that if I default, they either don't offer me a structured plan or it's unreasonable and they take me to court and in which case I may not be any better off. I don't mind going to court and owning up to the debt if I knew that I could lock down the judgment, not accrue any additional interest and I could be offered a plan to pay it off. I know so little about civil judgments. Do they automatically attack my paycheck? My wife would never allow that to happen since she is the HR department and would be embarrassed out of a job. So although court doesn't scare us, an automatic wage garnishment would. Do they garnish wages automatically or just when you fail to meet the settlement rules? What kind of garnishment could they hit me with? I would hate to have them hit me with more garnishment then what I am currently paying in monthly payments. In type of wage garnishment would be a deal breaker for us since it would hinder our ability to conduct the kind of work we do and force us into a new and likely less profitable industry.

    What if I declare bankruptcy? Could I just bankrupt one debt instead of all debts? The bottom line here is that I need a way to figure out how to fix my current debt so that I can pay the damn thing off instead of getting nowhere with the payments. Any ideas on how to do that without making my life worse?

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: $35K In Credit Card Debt

    Honestly, it looks to me like you are in WAY over your head.

    I would look to consulting a bankruptcy attorney. This handles all of your debts, and under Chapter 13 (if you qualify), you can repay most of your debts.

    1. Sponsored Links
       

Similar Threads

  1. Credit / Debit Card Fraud: Mom Has Credit Card Debt in Son's Name, Found on His Credit Report
    By carmstr4 in forum Criminal Charges
    Replies: 1
    Last Post: 04-17-2011, 03:43 PM
  2. Credit Reports: Clearing Credit Card Debt from Credit Report
    By Frdtrtnfx4 in forum Personal Finance And Investment Law
    Replies: 2
    Last Post: 01-20-2011, 12:19 PM
  3. Banking: Credit Union Threatening Car Repossession Due to Credit Card Debt
    By americanwoman1 in forum Personal Finance And Investment Law
    Replies: 2
    Last Post: 12-13-2009, 08:31 PM
  4. Credit Reports: Ten-Year-Old Credit Card Debt Still Appearing On Credit Report
    By amandalynn79 in forum Personal Finance And Investment Law
    Replies: 5
    Last Post: 04-04-2007, 11:25 AM
  5. Debt Collectors: Being Sued for a credit card debt not on my Credit report
    By Miguel863 in forum Debts and Collections
    Replies: 7
    Last Post: 09-26-2005, 07:46 PM
 
 
Sponsored Links

Legal Help, Information and Resources