How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WALLSTREETESQ Your Own Question
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17248
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
16356563
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

My home is foreclosed in connecticut and i work and live in

This answer was rated:

My home is foreclosed in connecticut and i work and live in Maryland now. i also have around 7 open credit card collection accounts. I signed up with a deb consolidation agency. But I am wondering if paying the collection agency for the debt i owe is good or not since I already have my credit record poor because of home foreclosure. Also what will happen if i dont pay to the collection agencies.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

This is a common situation, in most cases a bankruptcy would be better then paying through a debt consolidation program, as your credit already is poor,

WALLSTREETESQ :

In terms of collections, if you fail to pay they can sue you and go after your personal accounts, or garnish your wages.

Customer:

I am employed now and i doubt i want to file for bankruptcy

Customer:

so u think paying them is a good option?

WALLSTREETESQ :

Paying them is an option, if you are working and can afford the debt payments it is fine,

Customer:

so if i pay them, will it help my credit score even though i lost my house in foreclosure?

WALLSTREETESQ :

However, if you have a debt from the foreclosure as well, you may want to consider a chapter 13 bankruptcy which is a payment plan bankruptcy, where you pay the debts over a 60 month period, and some of the balance would be discharged as well

Customer:

no its just credit card deby

WALLSTREETESQ :

The foreclosure will remain on your credit, if you pay the program, your score would improve slowly.

Customer:

debt

WALLSTREETESQ :

it would improve after 1 year

Customer:

last question - collection agency, can they really sue or garnish the wages?

WALLSTREETESQ :

Yes, if they receive a judgment they can garnish your wages

Customer:

ok thanks

WALLSTREETESQ :

Good luck, and if you have any further questions please do not hesitate to ask.

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions