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I have a lot of credit card debt from opening a business and having to sell it in one year because of family responsibilities. Saw a bankruptcy attorney, but the options don’t seem to work for me as there’s no way I could ever pay off these debts.
I know it’s very immoral, but what will actually happen if I just stop paying on them? I know I’ll be inundated with phone calls and lose my good credit standing, but can they attach my bank account or any other asset?
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2 Comments to 'credit card debt and bankruptcy'
DianneBOctober 7, 2008
The first thing you need to ask yourself is–can you live if these creditors get garnishments against you? A creditor can get up to 25% of your paycheck. If the debt is small enough to where it can be paid off rather quickly through the garnishment, then it may not be so detrimental. However, if you are living paycheck to paycheck, it may not be the best situation for you to be in. The other issue is that a judgment, if certified, can attach to your assets, particularly any property you own. If you should want to refinance or even sell your home, those judgments will have to be satisfied and they can often screw up any financing that you have acquired.
Bankruptcy is not as negative as everyone thinks it is. It can stay on your credit report for up to 7 to 10 years. It depends on the credit reporting agent. Experian typically reports for 10; transunion and equifax are typically 7 years. However, there have been a multitude of studies recently that show that after you get out of bankruptcy, your credit rebuilds faster than if you were to attempt to do it on your own.
winnableJune 2, 2009
sorry to hear that. I totally agree with the comment from DianneB. If you are young enough and you can earn to reduce your debt, I would suggest take time from company and pay them off.
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