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What will happen if I just don't pay my cc debt?

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I have  heavy cc debt.  They are my own personal  and business cards (business no longer exists) .  The debt is a result of taking a 2/3 cut in income in 2008 at the same time that my first child of three started college.  I have paid my cards until 4-6 months ago.  I have looked into a chapter 13 bankrupcy  but  due to my husband's income, the payments would be more than I earn and I would pay back 100% of what I owe so this is not an option.

I looked into debt invalidation and debt settlement but i can barely afford the payments and my husband does not want me to do this.  Instead he wants me to just not pay the cc companies and if there are judgements he wants to let them put liens on my house.  

 

My questions are about  what will happen if I do this?

If my lawyer settles the debt  and I don't pay it back does the debt go back to the original amount?

Will my lawyer do this for multiple accounts?

Will I be able to rent an apartment in the future?

Will I be able to keep my home equity loan if my husband dies (it is in his name only now)?

how much of my salary can they garnish?

Can they garnish 1099 income?

Will I be able to get a car loan?

What else will I not be able to do?

What don't we know about doing this?

 

Thank you

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welcome to CB!

 

one of the worse things someone can do is to ignore bad debts and hope for the best. If you are BK, then filing sooner rather than later makes sense. What is wrong with a BK13 payment plan? Is your hubby not helping pay your liabilities?

 

keep in mind that "settled" debt may have tax consequences and may result in the residual amount being sold off to a JDB and hound you for the next 419 years.

 

have the cards been charged off?

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6 hours ago, SDT said:

If my lawyer settles the debt  and I don't pay it back does the debt go back to the original amount?

The original amount will always be there even if there is a settlement. Settlement means the creditor will accept it as payment in full.

Will my lawyer do this for multiple accounts?

As long as you keep paying the lawyer's fees

Will I be able to rent an apartment in the future?

Depends upon your market. You might find an apartment but it could be a really lousy one.

Will I be able to keep my home equity loan if my husband dies (it is in his name only now)?

Depends upon how the wills and estates are set up, and your state of residence

how much of my salary can they garnish?

Depends upon the laws of your state of residence

Can they garnish 1099 income?

Refer to the answer I just posted above

Will I be able to get a car loan?

You could, but the terms will not be pretty and likely from a BHPH.

What else will I not be able to do?

What don't we know about doing this?

Settlement can leave your credit just as bad off as bankruptcy. Also, as homeowners if you have enough liens placed against your home and you have sufficient equity the lienholders could push for a foreclosure and judicial sale.

 

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