Legal Question in Credit and Debt Law in Iowa

Credit Card Debt

I defaulted on a credit card (MBNA) and now they have sent me papers for arbitration. I have been reading some horror stories about them freezing bank accounts and garnishing wages. I have been paying a debt consolidation company $300 a month for a year to build up enough funds to make them an offer. They offered to settle for $5000 before. If they would consider this again I would probably get a loan to pay this off. Should I try to call MBNA and try to settle this account? What should I do?


Asked on 4/10/07, 5:25 pm

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Credit Card Debt

Depending on amount due, it may be advisable to have an attorney negotiate a partial payoff ( after terminating the consolidators). Only an attorney can credibly threaten to go to Bankruptcy court.

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Answered on 4/10/07, 8:41 pm


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