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CA Lawyer
CA Lawyer, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Attorney
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I have about $40,000 in credit card debt. I am working but ...

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I have about $40,000 in credit card debt. I am working but just doing side jobs that make enough to pay for food and gas. My wofe is making about $200 a month taking care of a baby. We qualified for $400 a month in food stamps. I was making around $100k a year 3 out of the last 5 years. SO my question is, what can I do about this Credit card debt? I am paying $1043 a month on it thru take charge america. but at this rate I will pay on it for 4 years. Can I negotiate on the balance with Visa, Discover etc? Should I stop paying and pay down other things instead?SHould I just continue paying? What are the recourses if I dont pay. I dont have any property with any equity in it.
A potential option would be to file bankruptcy and discharge the debt.

If you have limited income, then a Chapter 7 bankruptcy would likely eliminate the debt entirely.

An initial consultation for bankruptcy can usually be obtained from a local attorney for free in your area. If not free, then perhaps a small fee.

As far as negotiations, that is certainly possible. However, typically creditors don't negotiate until you are seriously delinquint and unless you have a lump sum to pay them off.

The creditor's recourse if you don't pay would be to sue. If they sued and obtained a judgment, then they could try to garnish wages, take the money out of your bank accounts, put a lien on property you own, or take other actions. However, if your wages were low enough and if your bank accounts were empty, they might not be able to get much that way.

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