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How Can I Avoid Paying Credit Card Balance if Don't Have Big Bank Balance

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    How Can I Avoid Paying Credit Card Balance if Don't Have Big Bank Balance

    My question involves collection proceedings in the State of: California

    Hello
    I am out of job for last 9 months & not sure when I will get one. My bank balance is 12K but I have a credit card balance of 5K. One card is from same bank but other from a different one. Every month I am paying only the minimum due balance on credit cards and also interest (since I am not paying in full)

    a. Can this situation qualify for debt settlement of 5K ?. If yes what should I do ?
    b. Is there any way I can avoid paying interest charges or ask credit company to reduce my balance if I am ready to pay it in full (usually I don't think they do)
    c. If I stop paying even the minimum amount due, will it go to Collections ?.
    d. What is out of scope for Collection agencies ?. I think they can look into or get the money from my bank account but what if I transfer my balance to my spouse's account. Only her name is there on the other account, though it was opened based on my credit score, as my spouse also doesn't work. She is disable & her disability only is supporting expenses of both. Can collection agencies also poke into her account and try to ask or get money from that one
    e. Making the situation worse, my wife is considering to get divorce from me. Can the above scenario be still valid ?
    ....Lots of thanks

    #2
    Originally posted by krishh2012@mail.com View Post
    My question involves collection proceedings in the State of: California

    Hello
    I am out of job for last 9 months & not sure when I will get one. My bank balance is 12K but I have a credit card balance of 5K. One card is from same bank but other from a different one. Every month I am paying only the minimum due balance on credit cards and also interest (since I am not paying in full)

    a. Can this situation qualify for debt settlement of 5K ?. If yes what should I do ?
    If I understand your question, not unless you are not paying the creditor at this time. They won't discount a current account.
    b. Is there any way I can avoid paying interest charges or ask credit company to reduce my balance if I am ready to pay it in full (usually I don't think they do)
    You can ask for anything, but beyond possible reduction of APR, not likely going to happen.
    c. If I stop paying even the minimum amount due, will it go to Collections ?.
    Yes it will, rather quickly.
    d. What is out of scope for Collection agencies ?. I think they can look into or get the money from my bank account but what if I transfer my balance to my spouse's account. Only her name is there on the other account, though it was opened based on my credit score, as my spouse also doesn't work. She is disable & her disability only is supporting expenses of both. Can collection agencies also poke into her account and try to ask or get money from that one
    A creditor can only "take" money from an account after suing you and attaining a judgement from the court. Unless it is the IRS or Student Loan. As for your spouse's account(s), if the accounts are held jointly, meaning if your name is co-maker, then the same thing applies with lawsuit and judgement. A creditor can come after any assets the two of you own together in efforts to collect on a judgement. If spouse is co-maker on any credit card you default with, then yes after legal proceedings, the creditor can collect from any account that any responsible party my have.
    e. Making the situation worse, my wife is considering to get divorce from me. Can the above scenario be still valid ?
    ....Lots of thanks
    You have a pretty small amount of debt, I wish you luck in finding employment soon and avoiding any potential financial train wreck.
    Last edited by JustBill; 12-15-2012, 07:24 PM.

    Comment


      #3
      Note that even with a judgment against you, a creditor cannot legally take funds from a bank account into which Social Security disability payments are deposited. That won't stop them from doing so anyhow, and then you'll need to prove the deposits to the court so the court can have the garnishment reversed.

      Comment


        #4
        I think you should appeal the creditor for the same. I think they will allow some time, may be at the cost of some extra amount. And wish you best luck with the job.

        Comment


          #5
          Originally posted by krishh2012@mail.com View Post
          My question involves collection proceedings in the State of: California

          Hello
          I am out of job for last 9 months & not sure when I will get one. My bank balance is 12K but I have a credit card balance of 5K. One card is from same bank but other from a different one. Every month I am paying only the minimum due balance on credit cards and also interest (since I am not paying in full)

          a. Can this situation qualify for debt settlement of 5K ?. If yes what should I do ?
          b. Is there any way I can avoid paying interest charges or ask credit company to reduce my balance if I am ready to pay it in full (usually I don't think they do)
          c. If I stop paying even the minimum amount due, will it go to Collections ?.
          d. What is out of scope for Collection agencies ?. I think they can look into or get the money from my bank account but what if I transfer my balance to my spouse's account. Only her name is there on the other account, though it was opened based on my credit score, as my spouse also doesn't work. She is disable & her disability only is supporting expenses of both. Can collection agencies also poke into her account and try to ask or get money from that one
          e. Making the situation worse, my wife is considering to get divorce from me. Can the above scenario be still valid ?
          ....Lots of thanks
          First priority should be to find a job. Any job. What kind of work are you applying for? Retail is hiring like crazy. It's the Christmas shopping season. So is the service industry. Go pound the pavement and find work, any work, for any amount of pay. Something is better than nothing.
          Brian

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