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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37810
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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we are in credit card debt for over 300,000.00. Short of declaring

Customer Question

we are in credit card debt for over 300,000.00. Short of declaring bankcruptcy what are our options. What happens if we just dont pay the credit cards.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

If you have no assets, then the card issuer will sell your debt to a debt collector who will hound you for the next 7 years. But, if you don't care about that, then you don't need to file for bankruptcy.


The reason for filing bankruptcy is to rid yourself of all of the old debts, so that you can start accumulating savings again without risk that the debt collector will reach those assets. That's why bankruptcy is a good option, once a debtor has reached the bottom.


socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
During the 7 yrs, our vehicles and a piece of machinery will be paid off. Can they take them from us or force us to pay the appraised values at that time.
Customer: replied 7 years ago.
Also, can they garnish our salary?
Expert:  socrateaser replied 7 years ago.

If the creditor/collector gets a judgment against you (and it probably will), then it can seize any assets that are not exempt. An individual is entitled to keep one vehicle worth no more than $2,400 each (this exemption varies by State jurisdiction, so if you move, the exemption may change for better or worse).


As for the "piece of machinary," that would be fair game.


And, yes, they can garnish your wages.


Note: it's actually 6 years to sue on the contract and get a judgment, 7 years on your credit record, but if the creditor actually gets the judgment, then that judgment is collectable for 20 years.


I'm not trying to promote bankruptcy to you, but a $300,000 debt is pretty substantial, so you really should carefully consider the bankruptcy option. Bankruptcy attorneys give free consults, so you really have nothing to lose.