CREDIT cards can be convenient and handy especially in times of financial emergencies but when the accumulated debt gets out of control, it can lead to long-term financial stress. Some people seem to be OK just making minimum payments for a while but unless they stop borrowing, they get to a point where the payments keep getting bigger every month until they can’t even afford the minimum payments anymore. Once they default, not only does their credit suffer but that’s when all the collection letters and phone calls start.
Of course, credit card companies don’t make it easy for you to catch up once you fall behind. They are quicka to add on additional fees and demand that you bring your account up to date immediately by paying the current amount due, all past due payments as well as late fees. And if allowed by the agreement that you signed when you first applied for the credit card, your interest rate can also go sky-high upon default. Before you know it, your debt problems have become a financial nightmare and your phone starts ringing off the hook with bill collectors harassing you at home and at work. What do you do at this point?
If your credit card debts have escalated beyond your control, perhaps you are getting nervous about what your creditors will do next. Can you be sued? Yes, you can be sued once your creditors are convinced that they have exhausted all other options to force you to pay. Of course, the benefit to be gained by suing you must outweigh the costs so the creditor will take that into consideration as well. But most delinquent accounts are turned over to collection agencies in high volumes which significantly reduce the creditors’ litigation costs. Smaller companies like credit unions will also sometimes sue you in small claims court and they don’t even need an attorney to file the lawsuit.
I often see people who ignore their debts for a long time until one day they receive a summons at home or at work and only then do they realize the seriousness and urgency of their situation. If you are sued by a creditor, it is very important that you do not ignore the lawsuit or you will definitely regret the consequences once the creditor takes the next step of garnishing your wages, seizing funds in your bank account, filing a lien against your real property or a combination of the above.
If filing bankruptcy is your best and only option, it is best to seek legal help right away before your debt problems get worse. Spare yourself the suffering and the agony caused by debt if at all possible. In choosing a bankruptcy lawyer, remember that not all bankruptcy lawyers are created equal and may have different ideas on how to help you. It is important to choose a knowledgeable and experienced attorney who has your best interests at heart.
If you are in debt and have not figured out a way to get out, constant worrying will not get you anywhere unless you act to change your situation for the better. For a free consultation, call my office at Toll-Free 1-866-477-7772 to schedule a free consultation. We will help you step by step in finding a solution that’s right for you. We have offices in Los Angeles, Pasadena, Cerritos and Valencia.
* * *
None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1 (866) 477-7772.