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What options can you give me in order for me to handle this situation and be able to pay off my debt?

El Centro, CA |

Hi. I owe about $3,000 in total on my 2 credit cards. I am unemployed and are receiving no income. I am over 6 payments behind on both credit cards, and they are threatening to take legal action on me. I've talked to one of my creditors of my situation, but they have done nothing to assist me. What options can you give me in order for me to handle this situation and be able to pay off my debt?

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Attorney answers 4


3k is not that much. I would change my phone number, wait till you have income again, then swing deal. Make sure you get a written release on any payment made to the creditor.


That's not enough debt to be filing BK. You should try to settle those debts for 50-60% of what you owe and borrow from family/friends enough to pay the settlement. It's certain they won't charge you 30% interest.


There aren't any options. If you have no income, then you have no ability to make any kind of deal to settle the debts (borrowing money from friends/relatives is a bad idea, in my opinion). Even if the creditors come after you and sue you and obtain a judgment, what are they going to get? Nothing. You have no check to garnish, and I doubt there is much in the way of assets to seize. So, the judgments will just sit out there. Now, in the future, when you have a job, etc., you may want to see about settling it or filing bankruptcy (I agree that $3k is a small amount upon which to file, but it's all relative).

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Susanne Ruiz Rodriguez

Susanne Ruiz Rodriguez


I would give the same advice presuming you have no other assets they could take (like a car worth over the state exempt amount). Once you have something at risk (like income from a job), then you can either try to settle or file a bankruptcy and get rid of them.


Focus on getting some income so you can either settle it or set up a repayment payment plan. Of course they will continue to add interest, but what else can you do? Can you borrow $1,500 from somewhere and settle now at 50%. At $3,000 in total I don't expect these creditors will be in a hurry to run to the court to file their case. Even if they did, what do you own? Can take put a lien on your real estate property? Can they garnish wages? Do you have a stash of cash in the bank that can be levied? I suspect the answer is no otherwise you'd have paid them off. As far as the calls as soon as the accounts get turned over to a collection agency you can send them a cease and desist letter to stop calling you.

I am not YOUR lawyer. Don't rely on answers to questions as legal advice. For legal advice contact a Bankruptcy Attorney for a consultation. Tokarska Law Center is a Federal Debt Relief Agency representing individuals and businesses in filing for bankrutpcy protection under the U.S. Bankrutpcy Code. Kathryn U. Tokarska is a San Diego Bankruptcy Attorney, owner of Tokarska Law Center, 185 West F Street #100, San Diego, CA 92101, (619) 285-1992

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