Credit card debt can become overwhelming. Interest, fees and penalties can add hundreds or thousands to the amounts you borrowed and are expected to repay. What if you are unable to continue making your credit card payments, or if your payments are simply too much to handle? When you miss a credit card payment, you are considered in default of your accountholder agreement. Defaulting on credit card debt can have consequences, including, collection calls, collection letters, negative credit reporting, lawsuits, judgments, and even garnishment.
What are your options?
Whether you have already defaulted on your credit card debt, or are planning to default, it is imperative to plan ahead. After defaulting on debt you are subject to collections and legal action. It is imperative to speak to a knowledgeable consumer law attorney to learn about your rights under federal consumer protection laws incuding the Fair Debt Collection Practices Act and Telephone Consumer Protection Act. Sometimes creditors and debt collectors violate these laws, and you may be entitled seek damages that can reduce or eliminate your debt altogether.
For some, bankruptcy is a good option. If you have a high amount of total debt, minimal assets and modest income you may be a good candidate for chapter 7 bankruptcy. Filing bankruptcy can allow you to eliminate credit card and other debts without having to pay these debts back.
For others, debt settlement can be a good alternative. Although creditors are under no obligation to accept a settlement, debt settlements can be achieved when an individual can show a financial hardship and the means to pay a lump sum or installment payments for less than the full amount of the debt. One of the main benefits of a debt settlement is you can avoid filing bankruptcy. Many creditors will accept anywhere between 20-40% of the total debt, while others require higher amounts. The results will vary depending on your individual circumstances so you should consult a knowledegable debt settlement lawyer.
Doing nothing is the worst thing you can do. Not only can you miss out on potential claims you may have for violations of federal consumer protection laws, but you leave yourself open to the risk of lawsuits, judgments, wage garnishments, and tax refund garnishment.
Hadous|Co. attorneys are skilled consumer protection litigators. We never charge you for a consultation. We want to earn your trust and are confident that we can help you get out of debt and start fresh. Contact our office at (248) 663-5155 to schedule a free consultation.