Legal Question in Credit and Debt Law in Pennsylvania

Buried in credit card debt

I have about 52k in credit card debt and was current on all payments until 4/08. My house payment, car payment, loan payment are up to date. I had a work injury and have lost 20k in wages. I talked to consumer debt company and was told I am at a minus 1400 a month and there is nothing they can do. I have tried to make some arrangements but with the minus in income I can't pay what the card companies want. I talked to an attorney about bankuptcy but he said I have too much equity in my home about 30k and I may receive some type of settlement for my injury and the card companies could be entitled to both. I don't want to put my house or possible settlement at risk. I know these are my debts and I want to pay them I just do not have the income to do it. I have no retirenment, no cds, no savings, no life insurance with cash value, no real assets but my home. How can I keep myself from being drug into court? What type of time frame do I have before this will happen? I need time to heal and let my comp case play out. Any advice?


Asked on 5/25/08, 12:14 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Buried in credit card debt

You asked about your situation.

You need to speak with either a more aggressive attorney or one better schooled in bankruptcy.

Your present situation is clearly one ripe for bankruptcy. There may be some considerations but generally BK will be the best way out.

The creditors will not necessarily have access to any potential settlement or even your home equity depending on your circumstances.

If you are represented by a lawyer with regard to the injury you need to seek another lawyer with regard to your financial situation and together they can create a solution that will get you out of the hole you are in.

You also need to think about the end results. This is not so much straight math as it is a calculus that examines your entire situation. It is impossible to properly analyze this scenario without all the facts but you are way ahead of the curve.

Most people in your situation wait until the foreclosure notice is on the door to call a lawyer. By contacting a lawyer now you will be able to analyze and present your case in the best scenario to advantage your position rather than just to be steamrolled by the heavy hitters you are dealing with. Get in touch with a lawyer immediately as time is of the essence. Right now time is on your side. If you delay you may not be able to take advantage of time.

Feel free to contact me to discuss this further.

Regards,

Roger

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Answered on 5/25/08, 1:38 pm


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