Legal Question in Credit and Debt Law in Florida
credit card default
Today I was served with a summons for credit card default in the amount of $1,500.00. My total defaulted debt within the last 6 months is approximately $14,000 (this includes overlimit fees, late charges, and interest on the balances). We're a family of four (2 children, 10 and 11), both working parents, living in my parents' investment house property in Florida, living paycheck to paycheck. I'm a teacher, my husband is in construction sales. We live very conservatively and any commissions my husband recieves we turn over to my parents for taxes, insurance, upkeep. We have loans on both vehicles, the truck loan is high, $500.00 per month. A job my husband got 2 years ago required he buy a certain type/size vehicle. The job laid him off, we're stuck with the loan without compensation.
What do I need to do? Please advise.
2 Answers from Attorneys
Re: credit card default
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
First thing you need to do is to learn how to budget your monies to live within your means. If you ran up a $14,000.00 debt in the past 6 months, it obviously includes much more than the car payment.
Second, you may wish to consider filing personal bankruptcy if you qualify under the new requirements. This would wipe out your debt and allow you to turn the car back in. Your credit has already been ruined thus the bankruptcy will not affect you. Alternatively, you should seek debt counseling to discuss your options but do not get involved with one of the scam companies who promise to lower your credit card debt and then demand a substantial payment upfront to them.
Scott R. Jay, Esq.
Re: credit card default
Hello,
I'm sorry to hear about your situation. Bankruptcy may be a good option for you and your husband. There are some other options too. I'd be happy to discuss the situation with you. We handle a lot of bankruptcy cases. We offer a free initial consultation.