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Most people know credit cards are unsecured debt(s). And some are under the mistaken idea that the companies have no recourse if a card holder defaults. That is, of course not true. They have the legal option to sue to recover their monies. Not being able to pay is unfortunately not considered a defense in a creditor lawsuit. If the creditor wins a judgment they can garnish wages, and levy bank accounts. Place liens on real property (sometimes force the sale of that property). Petition the court to liquidate any non-exempt assets of the debtor. Every state has a set of exemptions to help protect a debtor's property. It is a good idea for everyone to be informed of what those exemptions are (just in case).
Amount of debt
A lot depends on the amount of the debt. If it is only several thousand dollars they will sell your account to a collection agency who will start hounding you at home and work. They will also place a negative report with the credit reporting agencies and all future credit will probably be denied for the next seven years.
If it is a substantial amount then you will probably get a letter from an attorney and they will take you to court. When they get a judgment it will be collected in accordance with the laws of your state.
Property
Any real property that YOU OWN, such as land, houses, business property, and inventory, can have a LIEN put on it, so that if and when you sell that property, the amount of the lien has to be paid off, before you get any money from the sale. Liens are registered at the county or state level.
What to do
Writing a hardship letter to your credit card companies can result in lowered interest rates and lowered payments.
What else can I help you with?
Is it possible to transfer credit card debt to another person?
No, it is not possible to transfer credit card debt to another person. Each individual is responsible for their own credit card debt and cannot transfer it to someone else.
Is it possible for you to transfer credit card debt to another person?
No, it is generally not possible to transfer credit card debt to another person. Each individual is responsible for their own credit card debt and cannot transfer it to someone else.
Estate insolvent cannot pay credit card debt affect on heir's credit history or tier score?
It does not. The debt belongs to the deceased. If the estate cannot settle the account, the credit card company is not going to get paid.
What happens if unsecured credit card debt is not paid?
It goes on the credit reports as a delinquencyAnswer:If you don't pay your credit card debt then to your creditor may take you to civil court and can get a judgment to hold your property. There are other penalty as well if you dont pay your credit card debt.
What happens if there is a judgment against you for credit card debt in Louisiana?
court government
What happens if you cannot pay off your credit card debt in the state of Texas?
You'll be in prison.
Is it possible to transfer credit card debt to another person?
No, it is not possible to transfer credit card debt to another person. Each individual is responsible for their own credit card debt and cannot transfer it to someone else.
In English Law What happens to credit card debt after the death of The card holder?
The Debt goes to be paid by his estate, if there is no money to pay the debt it just bad luck for the credit card company.
Is it possible for you to transfer credit card debt to another person?
No, it is generally not possible to transfer credit card debt to another person. Each individual is responsible for their own credit card debt and cannot transfer it to someone else.
Estate insolvent cannot pay credit card debt affect on heir's credit history or tier score?
It does not. The debt belongs to the deceased. If the estate cannot settle the account, the credit card company is not going to get paid.
What happens when a credit card debt goes to litigation?
A credit card debt will be granted a judgment possibly and then the company can pursue you to collect the debt. A garnishment could even be awarded, although this is rare on unsecured debt.
What happens if unsecured credit card debt is not paid?
It goes on the credit reports as a delinquencyAnswer:If you don't pay your credit card debt then to your creditor may take you to civil court and can get a judgment to hold your property. There are other penalty as well if you dont pay your credit card debt.
Can a credit card company or debt collector take money from your IRA?
No they cannot
What happens if there is a judgment against you for credit card debt in Louisiana?
court government
What happens to credit card debt if a bank fails?
If a bank fails, credit card debt is typically still owed by the cardholder to the bank or to a new entity that acquires the debt. The debt does not disappear just because the bank fails.
how to clear up credit card debt?
It can be very difficult to clear up credit card debt. Therefore, you may need to borrow money from your parents if you have to just to get out of credit card debt. If that is not applicable, then you must watch out your own spending and make sure that there is absolutely nothing that you do not actually need. Apply for financial help is you cannot pay tuition because of the credit card debt.
What happens to unpaid expired credit card?
Only the card expires, not the line of credit it is attached to. So interest will still accrue on the unpaid debt.
