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Credit card debt and collection agencies

Upland, CA |

Help! My husband and I are a product of tough economical times. We cannot pay four of our major credit cards but are up to date on our mortgage. We are being badgered at home by collection agencies. We are both teachers whose income has been reduced 25% because of furlough days and salary rollbacks. The credit card debt was incurred from a flood in our home that was not covered by insurance and two kids in college. We don't want to be sued, lien on the home or garnished what wages we do bring home. What is our recourse?

Attorney Answers 1


  1. You may need to declare bankruptcy. Credit card debt is unsecured debt and if you file for bankruptcy you MAY be able to keep your home (depending on the amount of equity you have in it). You can also advise the credit card companies of your situation and ask them for a reasonable repayment plan with a reduce interest rate of 7 to 9%.

    Disclaimer. Ms. Marsh is an attorney licensed to practice in California. The information posted above is for general information, does not constitute professional legal advice, and does not create an attorney client relationship. Ms. Marsh strongly advises the questioner to consult with an attorney to thoroughly review his or her particular circumstances and for advice tailored to his or her specific circumstances.

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