I charged airline tickets on my credit card, however I had to default the following month due to overwhelming credit card debt.
What can the credit card company do ?
We have been using our savings to pay credit card debts for 3 years and we can't afford to do that anymore.
I am over 65 and lost my job 3 years ago and desperately trying to get cash flow just to live. My wife is permanently disabled. I've tried to get a job and know my age is a problem.
We also charged our Real Estate taxes last month on the same card, we just don't have the money. We have had this credit card since 1991 and never missed a payment or been late . We don't want to go Bankrupt.
3 attorney answers
They do not reverse charges for defaulting on a credit card. Bankruptcy should never be a desirable or an ideal option. However, there is a difference between wants and needs. You may not want to file for bankruptcy but you may need to file for bankruptcy. If you have mounting debt and an inability to pay that debt for the foreseeable future, bankruptcy may be your only prudent option. You should consult a Debt Counselor or an experienced bankruptcy attorney to help you review your options. A good bankruptcy attorney should lay out bankruptcy AND non-bankruptcy options for you and recommend which option is right for your particular case.
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There is a difference between an inability to pay right now and the intent to not repay. One is fraud and the other is not. Also, if you make charges and then immediately file for bankruptcy or default, you can be sued. Stop using the cards if you can't pay for them.
See a good credit counselor (non-profit) for help.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.
I do not believe that the credit card company would be able to reverse the charge for the airline ticket. However, if you have determined that you are not going to be able to make future credit card payments, you need to stop using your credit cards, because incurring debt that you know you will not be able to repay is a form of fraud. If you do file bankruptcy, you are going to want to go at least 90 days without using your credit cards before you file.
I know that you don't want to file bankruptcy, but from the facts that you have given, it sounds like you may want to at least discuss your options with a bankruptcy attorney. Many bankruptcy attorneys offer a free initial consultation in which you would have the opportunity to discuss your full financial situation in greater detail.