What can they do?

[whtsamada]

Hello everyone! I really need some help and I thought someone on this board might have some to offer. I currently live in Texas and I have a significant amount of credit card debt ($25,000) in the forms of Discover, Wells Fargo Visa, Credit Union Visa, Chase Mastercard and Care Credit. I had a rocky few months last summer as I was making a career change (and I was already in over my head beforehand!) and I got behind on all my cards. I contemplated bankruptcy but really thought I could turn things around, so I didn't file. I have been in a debt management program since early last fall and I don't have any complaints about the company but the situation itself is just not working. I barely have money leftover each month and I am one emergency or unexpected expense from disaster. I have been trying to stick it out but I have another 5 years of this if things proceed as planned. I am just exhausted and sick over the situation and to top it off my job situation is looking perilous once again.

Here is my problem. What will happen if I default on all these cards? I have heard so many different things. Many people say that creditors really can't do anything but harass you. I have heard some say that they could potentially file a law suit against you. I do know that in Texas they are not able to garnish wages. What would be the worse case scenario in my situation. I do have a year left to pay on my car and I have several student loans but these things I can handle. Thanks in advance for any help!

[StaciMM]

Worst case scenario-they might (I'm not sure, really) be able to attach your bank accounts, and if you own property, they can attach a lien to it. If you don't own property now, they will prevent you from acquiring property in the future.

[bkfiler]

yes they can file civil suits against you in superior court. they can then file liens. then they can take whatever property isnt exempt for your state.

if you filed bk then the trustee may want to take your car and sell it unless you buy it off him for the market price or maybe you can reaffirm it. so many factors.

keep researching. you will learn more as bk relates to your case as you go. also, make an apppt with an attorney. its free and you will get answers extremely fast.

[whtsamada]

forgot to mention

I really don't want to file bankruptcy right now. I would like to let things go and in a couple of years when things are settled pay the debts off. Does that make sense? I know it sounds crazy but in my head it works...lol.

[bkfiler]

seems fine to me. as long as you are comfortable with that then i think thats a good plan. stick around and ask questions. maybe you will get more information along the way.

[HopeinHorizon]

You can always file bankruptcy for protection if things get really messy along the way...

There is nothing in the code saying you can't turn around and voluntarily pay these people after they are discharged if you want...

[GoingDown]

yes they can file civil suits against you in superior court. they can then file liens. then they can take whatever property isnt exempt for your state.

if you filed bk then the trustee may want to take your car and sell it unless you buy it off him for the market price or maybe you can reaffirm it. so many factors.

keep researching. you will learn more as bk relates to your case as you go. also, make an apppt with an attorney. its free and you will get answers extremely fast.

I finally talked to a lawyer about this and he said that yes, they can get a judgment against you if you don't pay your credit cards, and they can file liens against any real estate property, but they CAN'T take it away from you. The only way the lien gets paid is when you sell it or refinance it. So, if you're not planning on selling it or refinancing it, then they can't really do anything to you.

And I asked him about whether or not they could put a lien on my truck and take it, and he said they could not take it from me. They could put a lien on it, but that they rarely ever do this. He said they are not interested in acquiring someone's used vehicle.

What they are after is liquid assets like checking accounts and in some states (not Texas), wages.

[bkfiler]

ok good information. ive always wondered about what they can do with the liens.

ive heard it both ways. im gonna have to call the sherrifs office and ask what they can do if a lien is on a property. im wondering when they can take it or foreclose on the house and under what circumstances.

im still lacking info about this on what they can do and what they usually do.

[lostsoul23]

Just two toss my two cents in to this, when I did debt collections, I found the two most "debtor friendly" states were Texas and Florida. I always cringed when I got accounts with debtors there.

[SinkingFast]

Just two toss my two cents in to this, when I did debt collections, I found the two most "debtor friendly" states were Texas and Florida. I always cringed when I got accounts with debtors there.

And that's part of what this BK Reform thing was aimed at. The debtor friendly states.

Two of the attnys have mentioned that specifically. Before chatting with them and reading it here, I didn't know that kind of stuff. Evidently people, mainly rich folk and celebrities, knew that kind of stuff.

One attny specifically mentioned O.J. Simpson. Evidently, after he won the trial, he ran off to Florida, bought a multi-million dollar estate, and filed BK. Unlimited homestead exemption, Gov't couldn't do a thing.

So the new law makes you plan your BK at least 2 years in advance now, and has limited the amount any state can offer for homestead exemption. Like regular folk would know 2 years in advance. "Hey, Hunny! We need to move to Texas or Florida now. We're gonna go BK in a couple years."

[Minnymouth]

Often debt management programs do not work due to the fact that some creditors will not participate in it, thus creating extra problems....

Contact a BK attorney ( free consultation) and see what options are open to you and how they will affect your home and auto.....

Do some research here on the forum, ask questions, we can help.....

Keep us posted on what you decide to do,

Minny

[aa06a47]

Often debt management programs do not work due to the fact that some creditors will not participate in it, thus creating extra problems....

Contact a BK attorney ( free consultation) and see what options are open to you and how they will affect your home and auto.....

Do some research here on the forum, ask questions, we can help.....

Keep us posted on what you decide to do,

Minny

The quotes I got from the debt management people I looked into basically didn't lower my payment by much, they even admitted they could only get a break on interest from some credit cards. The kicker was that there fees more than made up the difference in the intererst they were trying to save me.

My suggestion, file bk, if you can't make it with the counseling it may be your only recourse.

[fellowpoorman]

same thing happened to me, the payments were more on some cards less on others and amex wouldn't cooperate at all. overall the payments were about the same per month, filed ch 7, why put it off longer, i wanted to pay the debts, but that wouldn't happen, now 32 days to go.