credit card litigation

[houser18]

What is the name of your state? New Jersey

I was recently contacted about one of my credit cards that just went into collection. The agent I spoke to threatened that he could take me to court over a $3000 outstanding credit card balance. I offered to pay small monthly payments, but he insisted that I could only pay 1/2 now and another 1/2 within 6 months or it would go to court. I cannot borrow money or pay what he offered.

I do not own a home. I have about $15,000 total in credit card debt that is in the process of collection. I have been out of grad. school for less than a year. I only make 30k a year. I also have student loans and a car loan...which I am current on both of them.

I am considering filing for bankruptcy because the collection agent claimed that I could end up paying triple the amount of the credit card debt if I am taken to court. I thought that I had to have assets to liquidate to file for bankruptcy. Can I file without assets? Should I file or will they eventually settle with me? I feel like I am being bullied around by this agent.

[kyle_kyle_p]

well, there's a new bill out there get'n ready to be voted on. If you are gonna try bankruptcy. It makes it harder for ppl just just claim it so they don't make payments. says something about if you make a certain amount of $$ then you'd still have to pay. You may want to look into it. Im in the same position. 36k school loans, and im only mak'n 24.5k a yr + car loans, and bills... look'n for a new (raise) job as we speak.

[Debt Guy]

The new bankruptcy legislation will not be effective until October -- if bankruptcy is in the cards, file before then.

Bankruptcy will not discharge your student loans. You can discharge your credit card debts. The chances are good that you can keep your car in bankruptcy -- it all depends on the exemptions allowed by your state.

Being bullied by a debt collector is nothing new -- that is how they work. They will say most anything to create a sense of urgency in your mind. Don't take it personal.

If you are in default, the creditor has the right to demand payment in full and to take you to court if you fail to pay. If you are sued and the creditor is awarded a judgment, then they can garnish your wages -- typically they can grab about 25% of your take home pay.

Different creditors have different standards for what they will accept as a settlement. If you are offering only very small payments, it is likely that the creditor would refuse the payment plan and go for the judgment/garnishment --it is a purely financial decision.

[Ladynred]

well, there's a new bill out there get'n ready to be voted on

HELLO ?? WAKE UP !! The bill was PASSED last week and Bush signed it into law 2 days ago !!

This is a duplicate post, which I answered in the BANKRUPTCY forum .. please don't cross-post.