Legal Question in Credit and Debt Law in California
effect lettting home go has on credit cards
if a couple lets their house go will credit companies increase interest rates even though you are paying credit cards on time and paying more than minimum. I'm concerned that if we let house go, and credit companies demand a much higher interest rate, it will force us to file banruptcy.
2 Answers from Attorneys
Re: effect lettting home go has on credit cards
Why would you "let the house go" and then file for bankruptcy? Filing for bankruptcy automatically stops the foreclosure, at least for the time being. Take your entire situation to a BK lawyer.
Re: effect lettting home go has on credit cards
My experience, related by clients, is that yes, your interest rate will go up as your credit score goes down. In the immediate future, there are two "bombs" you can drop on your credit report. Bankruptcy and foreclosure.
That being said, do you have any other choice? Even if your other debt costs you more, you need to decide if the benefit of unloading yourself from a house which I assume is financially unbearable, is worth that extra cost.
*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
