Going to Federal prison for 2 years what happens with my unsecured debt (credit cards).

Asked almost 2 years ago - Chicago, IL

I have incurred credit card debt totaling $40,000 and would like to know what happens when I go away for 2 years? Keep in mind that I do not want to file for bankruptcy at all.

I am curious as to what my options are. Is there a program that credit card companies have for when a person goes to jail?

Attorney answers (3)

  1. Dorothy G Bunce

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . Either you pay or you don't. If you don't pay, the creditors can sue you and attach any assets that are not protected under state laws called exemptions. I am not aware of any programs that banks have to allow you to defer payment of your credit card debt will incarcerated. Good luck and I hope this perspective helps!

  2. Michael Avanesian

    Contributor Level 16

    5

    Lawyers agree

    Answered . I would think you're the perfect candidate to file for a bk!

    File now, let your credit repair itself while in the pen, come out, apply for some cards (or apply while in the pen), and be prepared to start your life anew.

    The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may... more
  3. Kathryn Ursula Tokarska

    Contributor Level 16

    4

    Lawyers agree

    Answered . Options are 1) continue to pay as obligated 2) pay under credit consolidation 3) negotiate a settlement 4) don't pay and deal with consequences as Counsel Bounce provided 5) file bankruptcy. Whether any of these options can work for you specifically will depend on more information about your financial situation: assets, income. A consultation with a bankruptcy attorney will include review of your personal financial situation to determine a course a action. I would assume that income is going to be zero, but who knows, maybe you have some interest/real estate income outside of wages. Are there assets that could be liquidated to setup a repayment plan or a propose a settlement? Most people don't for bankruptcy because they want to but because it simply is the best course of action under the circumstances.

    I am not YOUR lawyer. You should not rely on answers to questions as legal advice. For legal advice you should... more

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