What can they do?

[sunshine1234]

What is the name of your state? Wisconsin

Here is my situation. I filed bankruptcy almost 3 years ago after a difficult divorce. Unfortunately, since that time, I've gotten myself into more debt problems. I have about $7000 in cc debt remaining and have been unable to make payments for the past year. I've gotten letters from collections, and phone calls, etc... I know I'm running out of time before they take further action.. my question is, what can that be? I don't own a home, and I make payments on my car. I have no savings to speak of and live paycheck to paycheck. I know I can't file again, so what happens now? I can offer to make the CC companies very minimal payments of $10 a month, but I doubt they'll accept that? What are my options? I'm nervous not knowing what they can do next. I do not fully understand what my rights are. Please advise. I know I have gotten myself into a mess and take full responsibility for being so irresponsible... I'm just trying to get by and do what i need to... I would appreciate any suggestions/information you can provide.
Thank you.

 

[cmorris]

Call and see about a hardship program from the cc company/companies. If they agree, get something in writing.

If you don't pay anything at all, your account will be "charged-off." This means the cc company would write your debt off and get a tax break. They will sell the account to a collection agency, who will send letters and/or call. You can send them a limited cease and desist to avoid phone calls. However, if you send a blanket c and d, they may sue you.

They may sue you anyway and obtain a judgment. This means they can attach liens to any property you have, seize bank accounts, garnish wages (if allowed in your state), etc. It is also collectable for at least 10+ years, so even though you have no assets now, they can get it later.

Of course, you may not be sued at all. But most certainly expect bad credit and the inability to get another cc or loan.

Go to creditboards.com to learn about your rights and how to stay out of debt. It seems like this a pattern (either bad situations and/or spending problems); learn to stop it! Best of luck to you.

 

[sunshine1234]

Seize bank accounts? What exactly does that mean?

 

[cmorris]

Seize bank account: take out all of the money in it to repay the debt. This can happen after a judgment with or without warning.

 

[pjsgirl]

In Wisconsin it is legal to garnish your wages. What they will do is bring it to court. You usually don't have to attend the hearing but if you want to argue the debt you should go. Then the judge will look over your salary and decide on an amount they will take out each pay check. Usually it's not a huge amount but it could make it harder to live on.