Fear of Credit Card Debt Summonses and Bankruptcy � How to Avoid Them - Part 1
The vast majority of consumers do not understand they can eliminate credit card debt without bankruptcy. They think or fear credit card debt will eventually end in a court summons. It can, but only if it is not handled properly, according to the Credit Card Debt Survival Guide.
Some consumers may be forced to stop paying their credit card debt due to temporary low income. When, however, they are able to pay again, the damage could already be done. Credit card debt gets charged off six months after payments have stopped and usually sold to a junk debt buyer within a year. The consumers credit is ruined, and the debt collectors are calling threatening a lawsuit. The balance on each credit card has been grossly inflated by interest, penalties, commissions and fees. At that point the best solution is to eliminate credit card debt by continuing to not pay it, but the consumer usually concludes it is time to file for bankruptcy.
Many consumers file for bankruptcy because they talked to an attorney who recommended it. The problem is (1) attorneys have nothing else to recommend besides bankruptcy, and (2) few attorneys are knowledgeable in consumer debt issues. They are ignorant of the fact that collection attorneys have difficulty documenting credit card debt to the standard required by a court of law and its rules of civil procedure. In addition the attorney is guaranteed to get paid in a bankruptcy, while there is very little money to be made representing a guilty credit card debtor.
Bankruptcy can be a very serious, life-altering event. You may not qualify for Chapter 7 liquidation. Instead, you can be forced into Chapter 13 and a payment plan for five years, if you have sufficient income. That plan could include junk-debt-buyer unsecured creditors, who paid pennies for your inflated credit card balances.
Bankruptcy stays on your credit report for 10 years, while an unpaid credit card debt can only remain there for a maximum of 7.5 years. The stigma of bankruptcy follows you for life. You will always have to answer the question, Have you ever filed for bankruptcy? affirmatively every time you complete a job or credit application.
Debt collectors and collection attorneys do not expect to collect from everyone. If they collected from half of the people on the debtor lists they receive, they would be very successful. They work on commission and flat fees. Their time is money. Why should they should waste time with an educated consumer. One who knows how to legally resist them via written communications sent CRRR and that it is his right to dispute a debt even though he owes it. Instead they can pursue less fortunate individuals who think they must submit to a debt collectors demands.
This content is not intended as a substitute for legal advice. If you need an attorney in your local area, please contact a licensed attorney in your state.
For Part 2 of this article go http://www.credit-card-debt-survival.com /credit-card-debt-articles.html
Some consumers may be forced to stop paying their credit card debt due to temporary low income. When, however, they are able to pay again, the damage could already be done. Credit card debt gets charged off six months after payments have stopped and usually sold to a junk debt buyer within a year. The consumers credit is ruined, and the debt collectors are calling threatening a lawsuit. The balance on each credit card has been grossly inflated by interest, penalties, commissions and fees. At that point the best solution is to eliminate credit card debt by continuing to not pay it, but the consumer usually concludes it is time to file for bankruptcy.
Many consumers file for bankruptcy because they talked to an attorney who recommended it. The problem is (1) attorneys have nothing else to recommend besides bankruptcy, and (2) few attorneys are knowledgeable in consumer debt issues. They are ignorant of the fact that collection attorneys have difficulty documenting credit card debt to the standard required by a court of law and its rules of civil procedure. In addition the attorney is guaranteed to get paid in a bankruptcy, while there is very little money to be made representing a guilty credit card debtor.
Bankruptcy can be a very serious, life-altering event. You may not qualify for Chapter 7 liquidation. Instead, you can be forced into Chapter 13 and a payment plan for five years, if you have sufficient income. That plan could include junk-debt-buyer unsecured creditors, who paid pennies for your inflated credit card balances.
Bankruptcy stays on your credit report for 10 years, while an unpaid credit card debt can only remain there for a maximum of 7.5 years. The stigma of bankruptcy follows you for life. You will always have to answer the question, Have you ever filed for bankruptcy? affirmatively every time you complete a job or credit application.
Debt collectors and collection attorneys do not expect to collect from everyone. If they collected from half of the people on the debtor lists they receive, they would be very successful. They work on commission and flat fees. Their time is money. Why should they should waste time with an educated consumer. One who knows how to legally resist them via written communications sent CRRR and that it is his right to dispute a debt even though he owes it. Instead they can pursue less fortunate individuals who think they must submit to a debt collectors demands.
This content is not intended as a substitute for legal advice. If you need an attorney in your local area, please contact a licensed attorney in your state.
For Part 2 of this article go http://www.credit-card-debt-survival.com /credit-card-debt-articles.html
