Can they take our retirement income?
Date: Fri, 05/30/2008 - 15:13
After using our saving to pay on our considerable credit card debt these last 8 months, I will not be able to make even the min payments in June. We here trying to buy time in the hopes that a business we were involved in would recoup but it has not and will not. My questions are: what will happen when I don't pay? I know they'll start calling but what else can they do? I always paid on the internet so my bank account info is on file - can they take money from my checking account (assuming there’s any there!) - we live in Florida by the way. If they sue us what does that mean? Can they take our retirement income?
Is it feasible to hang on to one of the credit cards by paying on time? We've never not had a card and have had very good credit - it is very scary to think about this at this point in our lives.
I don't see how either debt settlement or repay can work for us...there just isn't enough income without the business. Maybe $100 extra per month on 60K worth of debts.
I guess I’d just like to know what to expect and would appreciate any info!
Hello Jaydee and welcome. I feel your pain, and I sympathize wit
Hello Jaydee and welcome. I feel your pain, and I sympathize with your situation. There are a few options you could try, but I suppose it really depends upon how much you want to preserve your credit rating. Have you thought about contacting your creditors and explaining that your financial situation is about to change, perhaps they might be willing to work something out with you. For example, allow you to make only the interest payment. I do recommend that you stay pro-active with your creditors though. Eventually they will most likely turn your account over to a collection agency, or even sell it to them and write it off as a loss. It really depends on the company. I wish I had more possitive information to give to you, but I can only speak from experience what happens when you default on your credit cards. Perhaps someone else will be able to come along and offer you some more possitive advice. Just hang tight, and good luck. :)
Contact your creditors and try to negotiate lower interest rates
Contact your creditors and try to negotiate lower interest rates.... and even if you cant pay the minimum payment, pay something. It will take a few months before they will write off your account.
Its pretty common knowledge that our economy is not doing to hot right now. The returns on charged-off debt is low right now so the credit card companies are not as quick to unload delinquint debt -- Im speculating here... but the sooner you contact your creditors, the better.
Definatly contact the creditors see if you can get a deferal on
Definatly contact the creditors see if you can get a deferal on your cards for a few months in hopes that you will be able to come up with something.
If you have good credit you may want to consider a consolidation loan in order to pay off all your cards and just deal with one payment. If you do this you should not use your credit cards until the loan is paid back as to avoid putting yourself into deeper debt.
If you were to be sued the only income that would be safe from them would be SSI or disability. If you were recieving retirement from an old employer it could be garnished if the state of Florida allows garnishments. They would also look as what assets you have as well and you may be subject to leins.
What will happen now?
Thanks for taking the time to reply...I'm sure this board gets alot of questions!
I guess I don't understand what the point in contacting these creditors is...I've gone through my savings making payments these past months. I should have tried negotiating when I had some money in the bank right??? As it stands now I have no savings and our monthly income isn't enough to pay ANY credit cards...just keep the essentials on the table. Our house isn't overly mortgaged but it is highly mortgaged and no room for an equity loan. I'd sell in a heart beat but our market is awful too.
Should I just call and tell them I can't pay period?
You really should call them and see what can be worked out. not
You really should call them and see what can be worked out. not calling them and not paying them is going to make you as a refusal to pay and it won't matter what your circumstances will be. It could start a legal process a lot sooner depending on the creditor and what balances you have.