Legal Question in Credit and Debt Law in Texas

american express

we had a line of credit with acredit card company for $8,000 that we used.we made the made the minimum payment of $100 to $200 a month for about 6 years.our balance is still $8682.we got in a financial bind so we didn't make the payment for a few months because we weren't getting anywhere or paying any ballance down.the company sent a letter to us from a counselor at law office saying they are going to start legal action against us if we don't pay in full.what can they do to us & what should we do ?

thank you in advance for your response.


Asked on 3/30/04, 11:49 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: american express

They'll sue you for the unpaid balance, interest, court costs and attorney fees. Then they'll try to collect the judgment, seizing any checking or savings accounts they can find. They can't touch any exempt property, such as your homestead, motor vehicles (1 each per family member), insurance, retirement accounts, kitchen utensils, furniture, or personal effects up to a value of $35,000.

Your credit will be trashed for 7 years. The judgment will be good for 10 years, and may be reinstated each additional 10 years.

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Answered on 3/30/04, 12:31 pm


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