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Credit card debt

Asked over 2 years ago - San Diego, CA

I was laid off 4/1/09 and unable to met my credit card debt. I sent certified letters stating my unemployment and a proposal with the amount I could pay until I acquire a full time position. My proposal have been declined. I have a appointment with a credit consumer agency to assist. If they are unable to assist with an acceptable payment arrangement what options do I have?

Financial Insecurity

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Attorney answers (2)

Robin Mashal

Reputation Level 16

Answered over 2 years ago. Litigation Lawyer in Los Angeles, CA.

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Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

Unless you can reach an agreement with the credit card company, or you are able to meet the minimum credit card payments, the credit card company may take collection action on your balances. If they sue you, you should file an answer and defend the suit to avoid entry of judgment against you. If the credit card debts were not incurred too recently, you may be able to discharge them in bankruptcy. You should consult your own attorney to protect your legal rights.

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Jeffrey Daniel Larkin

Reputation Level 15

Answered over 2 years ago. Bankruptcy Attorney in Carlsbad, CA.

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If you are unable to meet your monthly obligations and have significant unsecured debt you might want to consider filing bankruptcy. In my view a personal bankruptcy is the better way to go instead of credit counseling/consolidation unless you have a very small amount of unsecured debt because you can get a fresh start and begin to re-establish credit much sooner than it would take to pay off consolidated debt loads. Moreover, unless you are paying your creditors in full, your credit will reflect the accounts have been settled which is still a negative mark on your score.

LEGAL DISCLAIMER
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

The Larkin Law Firm

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