Two months ago I maxed out all my credit cards and opened an unsecured personal loan because I needed cash for family emergency. Now I have approximately ,000 debts from credit card companies and bank (all unsecured). After one month, I couldn’t afford to make the payments. For my situation, I don’t think I am able to payoff all the debt. What are my options now? When would the credit card company sue me? Can they garnish my salary? If the debt transfer to collection company, how much can I bargain off for a lump sum payment? Should I settle the payment myself or go to debt consolidation company? How many years the bad record would stay on my credit report?

I live in California. I’m working full time with ,000 annual salary. The only property I own is a free-and-clear car (2007). I might able to borrower ,000 from my girlfriend if a lump sum payment is offered.

Please answer as much as you can. Your help is much appreciated. Sincerely thanks.

Technorati Tags: annual salary, credit card companies, credit card company, credit cards, credit report, debt consolidation company, debts, family emergency, full time, girlfriend, lump sum payment, unsecured personal loan

I have an attorney who has been negotiating with another attorney who is attempting to get a judgment against me for CC debt originally in the amount of ,300. I had been served but do not yet have a court date. The judgment paperwork states the judgment at ,000. We have been negotiating for several months, I have offered a lump sum payment of K, which was refused and they asked for K. Payments on k with K down and 0/month (which is all that I can afford), they came back with .1K and 0 a month and 00 down. I just don’t have the cash to do this. It seems they are asking for an exorbitant amount. I’ve worked with many other creditors and they have settled, usually for less than the actual debt, but this guy is being a real knucklehead. At this point I either have to come up with the .5K or take my chances in court. Any suggestions? I’d like to settle this, but I think they are asking way too much. Just FYI…I ended up at this point because I broke my back 5 years ago and became disabled and ended up loosing my house, car and not paying many of my CCs. I’ve been trying to settle most of my past debts

Technorati Tags: ccs, creditors, debts, judgment against, knucklehead, lump sum payment, paperwork

I was talking to a friend of mine this morning and he was telling me he was going to do debt settlement even though he still had the ability to pay his bills. He said he would get the settlement company to get his balances on credit cards and unsecured debt cut by 40% or more, then make a lump sum payment right away and his debt would be cleared with almost no negative effect on his credit. He said usually what happens is you take from 1 to 3 years to pay off the amount and in that time it reflects poorly on your credit, but as soon as you pay it off it is as if it never happened. Is this true? If so, why doesn’t everyone do this? It sounds like he is a little mis-informed? Or is it true?

Technorati Tags: 3 years, credit cards, Debt Settlement, lump sum payment, settlement company, unsecured debt