Legal Question in Credit and Debt Law in California

Re: re: Credit Card Collection

For fraud, they would actually have to have proof. However, they can get a judgment and garnish your wages after the judgment.

If the payments are truly more than you can afford, and the credit card company (and/or other creditors you have) will not negotiate, see an attorney about filing for bankruptcy, which will either discharge the debt or force a more reasonable payment plan.

Re: re: Credit Card Collection

You have received sound advice above. I advise you to pursue the course of action suggested by Mr. Berger-Martin

Re: re: Credit Card Collection

Thank you for your inquiry. As Mr. Johnson mentioned, the credit card company cannot automatically begin garnishing wages, until and unless they go through the process to sue you, and prove a judgment against you.

Once they receive a judgment, they can put a lien on property or accounts, or garnish wages.

What can you do? At this point, you can oppose any lawsuit, negotiate with them, or declare bankruptcy. Only a bankruptcy will get you out of this with a minimal payment, as litigating this matter will be expensive, and negotiating will require you to pay a large amount of the debt, up front or over time.

Best of luck, and if you have any other questions, please feel free to email me or call my office.

Re: re: Credit Card Collection

Something really important to remember in a situation like yours is that those who work in collections are paid to be A**holes. Their job is to belittle and frighten you. They are usually quite successful at causing tremendous amounts of stress.

If you choose not to file for bankruptcy, your best bet is to pay a small amount every month. Even if you can only pay $20, do it. By sending money, they will see that you are making an effort and they will be less likely to pursue litigation. If you can only send $5 one month, do it. If they call and scream at you, ask them if they prefer a check that will bounce or one that will not. Assure them that you intend to pay as much as you can every month. If they hassle you about past payment plans or if they try to get you to agree to a new one, tell them you have paid all that you were able and that you will continue to pay all that you are able.

When I was in law school, I had bill collectors after me. I would tell them that I owed a lot of people money. I told them that I owed my neighbor some money and that he would punch me in the face every day that I didn't give him a dollar. I told them that the punch in the face was more persuasive than their angry phone calls.

In 99% of cases, you can avoid litigation by making a continuous effort to pay. However, if interest accrues at $75 per month and you never pay more than $5, that's a different story.

There are other things to consider as well. For example, if any of the debts have been sold off to a third party, you've instantly gained some leverage because the third party surely purchased the rights to the debt for a fraction of the amount owed.

I hate bill collectors. Feel free to email me if you have any more questions.

Regards,

Ben

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