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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Regarding my financial situation that we discussed awhile back.

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Regarding my financial situation that we discussed awhile back. If I stop paying my credit cards payments. What would be the risk I would incur such as my bank accounts being frozen, confiscated or leans on other assets such as cars adjacent property. I may try reduced payment negotiation as oppose to bankruptcy but this might take months and I worry about how i would be attacked in this time period. Any suggestions would be great.

cfortunato :

Hi JACustomer,

cfortunato :

Before any creditors - including credit card companies - can attach or place liens on any assets, such as real estate, bank accounts or cars, the creditor must get a judgment from court.

cfortunato :

Getting a judgment involves filing a lawsuit, which takes at least a few months.

cfortunato :

Additionally,

cfortunato :

most credit card companies wait at least 6 months after the debtor stops paying to take legal action (file a lawsuit).

cfortunato :

So, it should take at least 9 months after stopping paying your credit cars for your assets to be in jeopardy.

cfortunato :

In other words, a Bankruptcy can prevent liens from being placed on assets, and a Bankruptcy can remove any liens that have already been placed on assets.

Customer:

If I file bankruptcy at some point thereafter would that stop any action the creditors could take until the final outcome in court ?

Customer:

I did not see your additional comments, but they answered my last question.

Customer:

I have to ponder on that information and may have more questions later..I certainly appreciate your help. Thank you.

Yes - if you file a Bankruptcy, that would prevent any creditors from starting new lawsuits, and it would suspend and then dismiss any lawsuits that were already filed. (The lawsuits would be suspended as soon as your Bankruptcy is filed, and then dismissed as soon as your Bankruptcy case is finished - usually 4-6 months after it is filed.)
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