Legal Question in Credit and Debt Law in California

credit card default

I have huge credit card debt due to a family health crisis, and don't have the means to pay/settle these debts. The highest card is over $30,000, and collection agency has given me just a few days to come up with $10,000 to settle before ''other actions'' are persued by the cc company. I have too much equity in my home to file for bank., and am unable to refinance. Have been told that despite thrashed credit, most cc's will just write off the debt, but probably not on $30,000+. Can you tell me what actions they make take, and what the results may be? I am 60, have lived in my beloved home for 30 yrs, and am distraught at the thought of losing it. Thanking you in advance!


Asked on 8/02/06, 9:26 pm

1 Answer from Attorneys
Matthew Mickelson Law Offices of Matthew C. Mickelson

Re: credit card default

Unfortunately, your options may be few. Is your home owned by you alone, or is there anyone else on title? That will be important in determining whether or not they can sell your home after suing you. It may become necessary to sell your home to raise the cash to pay them off, after negotiating for a discount.

Also, you should seek the counsel of a bankruptcy lawyer to see if you really are ineligible for bankruptcy and the consequences of bankruptcy.

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Answered on 8/03/06, 1:27 pm


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