Legal Question in Credit and Debt Law in Massachusetts
Credit Card Default
I lost my job due to downsizing in 1/05. At my current job I now earn about 60% less. My Chase Credit Card soon after raised their minimum payment by several hundred dollars which I could not afford to pay. I went into a non-flexible hardship progarm for $170 a month and my bi-weekly pay often made this obligation hard to make on time. They were willing to settle my over $12,000 balance for around $7,000 but I am already finding it difficult to pay my ordinary monthly bills for mortgage, utilities, and etc...
I went to default and answer no calls regarding this debt which has ballooned to over $17,000 in interest and penalties and the debt has been delivered to a collection agency.
What can they do to me?
What can I do? What are my rights, if any?
1 Answer from Attorneys
Re: Credit Card Default
What can they do to you? Well, they can keep calling and sending you letters. They can hire collection agencies or sell their debt to another company, who will keep calling and sending letters. They can also take you to court and obtain a judgment, which they can use to attempt to levy (seize and sell) your property, which may include houses, cars, etc. They can also attach a bank account or garnish wages.
What can you do? You can either 1) attempt to negotiate with them either for a payment plan or a lump sum, or 2) you may be able to file bankruptcy and discharge this debt, or 3) you may do nothing and see what they do.
Good luck!
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