Legal Question in Credit and Debt Law in Massachusetts

Large amount of Credit Card debt ?

I have a substantial amount of debt- $5,500 on 1 card $11,000 on another and $48,000 on 1 last one. Long story short I was out of work for a while and had a start up compnay go sount on me so I'm drowing in bills currentyl. I'm able o pay the min each month but at this rate i'll be doing so for 1+years at almost $1500 a month. I'm considering stoping payments to them all together. What would happen to me in this situation I'm a MA resident. I'm a responsibile citizen just over my head from being out of work and having an investiment drag me down. I dont want to say screw the credit card companies but I have a mortgage and a young son and this debt is killing me and I want out from under it all together. What would be the time line for anything to come back to me and what would the legal ramifications be sine it's all unsecured debt ?? Please I need advise I was going to go to a debt settlement company but they wanted $1000 a month and close to $6000 in fees to negoiate my debts without any guarantees, so I was thinking of risking it and waiting to the 3rd parties call me to work out a deal, what do you think?


Asked on 3/14/08, 3:13 pm

2 Answers from Attorneys

Re: Large amount of Credit Card debt ?

Debt settlement companies ar ethe most lucrative scam in the marketplace... avoid them like you would avoid a plague. All they generally do is collect your money and pay off one bill at a time while all of the rest go into default and you end up getting sued and having your credit ruined; and all the while the credit cards will continue to charge you the maximum allowed rate of interest and late fees. Discuss your individual financial situation with a bankruptcy attorney and see if a court approved restructing of your debt (Chapter 13) would work.

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Answered on 3/14/08, 5:47 pm
JOHN TATOIAN LAW OFFICE OF JOHN A. TATOIAN ESQ.*Licensed Only in Massachusetts

Re: Large amount of Credit Card debt ?

There are a number of fairly effective and powerful alternatives available to you. My advice is to avoid "debt settlement companies" and seek the advice of an experienced, licensed professional attorney who can assess the details of your financial situation and protect your rights with respect to your creditors. Please feel free to contact my office direct for a free initial consultation and assessment.

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Answered on 3/20/08, 8:00 pm


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