Overwhelming Credit Card Debt

[beverpie]

What is the name of your state? South Carolina I am a 71 year old who is in panic debt. I have no idea how I got in this much debt, but when I found I was going to lose my contract job (due to school budget cuts, supposedly but my age had a lot to do with it even though my expertise is the best at what I do (clerical/database work)) I joined up with a place called Clear Debt Results. They told me that once they sent out a Cease and Desist letter, the credit card companies would no longer be allowed to add their 38% interest to my accounts. I now find that this isn't true and most of the cards are now doubled and more. Today the Clear Debt People's Legal Dept. called me to say that one of the companies sent them an Arbitration Letter which they were forwarding to me. Now back in May this same company offered a settlement amount but at the time I didn't have enough in the Savings Account they set up to pay them. Now I have over $2,000 in that account, but this company now wants $10,000! I cannot pay this. I cannot pay anymore payments because now that I don't have a job, I will have only enough to live on once the small unemployment checks stop in December. HELP!!!!! I am old and no one seems to want to hire me - I even went to the grocery stores but they never answered my applications either. I am at the end of my rope. I am afraid I may get sick (been having tiny chest pains) and then I won't be able to work at all and my husband (he still works but should retire and can't now) and I will lose our home and all the furnishings and won't have any place to go. Please - your thoughts.

[K'Ta]

It sounds to me like you should speak with a bankruptcy attorney. Most initial consults are free.

Also, please don't panic. They can't take anything without first getting a judgment and you'll know when that happens. After that they have to go through the court to be able to take anything you have. Don't stress out over this, no one's going to kill you, throw you in prison or haul you out of your home. Don't ignore the debt, but if you can't pay you can't pay. Hence my suggestion of a meeting with a BK atty.

[Ladynred]

The Clear Debt people clearly gave you VERY BAD information.

I agree with K'Ta, you might want to consult with a bankruptcy attorney.

Next question though, how long has it been since you last paid the original creditors on these debts ???

Don't let these jackals panic you, it's EXACTLY what they want - to scare you into forking over money you may not have and can't afford to give them. Chances are very small that you'd lose a single thing. An Arbitration award (and they WILL get one) is worthless in and of itself. They would have to have it confirmed as a legal judgment to be able to do squat.