The problem for the consumer with credit card debt is it gets charged off and sold to a junk debt buyer six months to a year after payments have stopped. Some consumers may be forced to stop paying their credit card debt because of temporary low income. But, once they are able to pay again, the damage could already be done. Their credit is ruined, and the debt collectors are calling. The balance has been grossly inflated by interest, penalties, commissions and fees. At that point the best credit card debt solution is to eliminate it by continuing to not pay it, or to file for Bankruptcy.

Bankruptcy can be a very serious, life-altering event. You may not qualify for Chapter 7 liquidation. Instead, you can be forced into Chapter 13 and a payment plan if you have sufficient income. Bankruptcy stays on your credit report for 10 years. In addition you will always have to answer the question, “Have you ever been through bankruptcy?’ affirmatively.

>Debt collectors and collection attorneys do not expect to collect from everyone. If they collected from half of the people on the debtor lists they receive, they would be very successful. They work on commission and flat fees. Their time is money. Why should they should waste time with an educated consumer who knows how to legally resist them, when instead they can pursue less fortunate individuals who think they must submit to every debt collector’s demands.

While debt collectors can threaten a lawsuit and notices on collection attorneys’ letterheads can be unnerving, any consumer who bothers to educate himself about credit card debt collection can motivate debt collectors and collection attorneys to focus their energies elsewhere. It is all about documentation; how a consumer responds in writing to collection attempts and what original creditor documents the collection attorney has to pursue someone with (usually none, or just a few copies of old statements).

Consumers should revise their thinking about bankruptcy when it comes to credit card debt. The selective informal bankruptcy with non-payment of credit card debt is the effective debt solution to consider.

Matt Highlander researched the Credit Card Debt Survival Guide. Learn about debt settlement and legal nonpayment strategies to Eliminate credit card debt. Matt Highlander is a contributing writer. Www.credit-card-debt-survival.com

Tagged with: • • • •

Filed under: BlogKnob

Like this post? Subscribe to my RSS feed and get loads more!