Basically, the credit card company will be able to get a judgment for the amount owing. This allows the company to access one's non exempt property
by levying on bank accounts and other property.Unfortunately a credit card company does not have to negotiate- most will, but they are not legally required to. If one has more debt than assets, and there are income issues, one may wish to consider bankruptcy; bankruptcy serves to allow the party to "start over" - basically for unsecured debts, such as credit cards, these are typically erased, or paid pennies on the dollar (depending on the assets/income available). So it is really a good idea to at least consult with a bankruptcy attorney to see if that is a viable option; otherwise one can become buried in their debt . A chapter 7
bankruptcy case does not involve the filing of a plan of repayment as in chapter 13
. Instead, the bankruptcy trustee
gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code
. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition
under chapter 7 may result in the loss of property. The debtor has no liability for discharged debts. Also an action can be brought against a debt collector that violates the Fair Debt Collection
Practices Act- that includes harassment. The fine for that is $1,000 per incident. The FTC oversees this and can assist with that:https://www.consumer.ftc.gov/articles/0149-debt-collection Further questions? Please post here to continue the chat. Satisfied? Kindly rate positively so I receive credit for assisting you.(no additional charges are incurred). Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.