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a student asked me a question and I did not know the answer -thought someone here would know...been through it, works for a cc company, a bankruptcy attorney...
....what happens if one can not pay credit card payments....i believe her mom has gotten to the point where she is unable to pay the minimum payments. In order to keep her household running she can not pay those bills...besides her credit being shot, what can she do...I told her to contact the CC companies, but I'm really not too sure how helpful that will be....any other advice? bankruptcy?
thanks in advance!
It will get turned over to collection agencies and they will call and call and say mean and ugly things like, "Why don't you sell your body so you can pay your bills, you stupid B****?"
How much do they owe and how much income do they have?
a student asked me a question and I did not know the answer -thought someone here would know...been through it, works for a cc company, a bankruptcy attorney...
....what happens if one can not pay credit card payments....i believe her mom has gotten to the point where she is unable to pay the minimum payments. In order to keep her household running she can not pay those bills...besides her credit being shot, what can she do...I told her to contact the CC companies, but I'm really not too sure how helpful that will be....any other advice? bankruptcy?
thanks in advance!
Bankruptcy solves nothing.
There are many not-for-profit agencies that will help her. Google "debt problems" for example.
If she cannot pay her minimum credit card charge she should contact the bank and see if they will be willing to help, 99% of the time they will be glad to help by deferring payments. The worst thing she could do is try to avoid the obvious fix she is in.
Using credit to finance household expenses without the income to cover will just make the situation worse and worse. The question is, are they anticipating a change in income or debt expense? What amount of debt and what amount of income are they working with? Is there a possibility of increasing the household income (part time job, selling off assets, yard sales, ebaying unused stuff) to start making increased debt payments?
Although I have had friends that ignore the creditors until they give a settlement offer, I believe that is the surefire way to damaged credit. Instead, I'd have called the creditors, explained the situation and see if there is room to negotiate in terms of interest rate reduction, lower payments, etc.
Since 2005, it's really been tougher to file chapter 7 bankruptcy, and chapter 13 won't really help, since it just reorganizes the debt into payment plan.
When you file bankruptcy sometimes you will have to pay the whole amount, sometimes a little, sometimes none. Like if the company has been bought out over and over.
But a company would rather have you pay some then none so bankruptcy isnt an option.
a student asked me a question and I did not know the answer -thought someone here would know...been through it, works for a cc company, a bankruptcy attorney...
....what happens if one can not pay credit card payments....i believe her mom has gotten to the point where she is unable to pay the minimum payments. In order to keep her household running she can not pay those bills...besides her credit being shot, what can she do...I told her to contact the CC companies, but I'm really not too sure how helpful that will be....any other advice? bankruptcy?
thanks in advance!
I have a friend who had a similar situation years ago. Instead of filing bankruptcy to get out of paying the money he owed he went to one of those Credit Counselors that are non-profit and help you to set up a program where the banks and credit card companies cooperate with you and set up a payment program that you can handle.
It took him several years but he paid all of his debts and he can hold his head up high.
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