Your credit report can be blemished for 7 years due to bad credit card debt. You can receive harassing collection calls from creditors or collection agencies. But you can put an end to these collection calls by hiring services of debt management companies or attorneys to pay off the debts or discharge the debts in bankruptcy. But remember that by paying off the debt you can still damage your credit rating as well as affect your finances for a long time. (more…)
Archive for the ‘Credit Card – Unsecured Debt’ Category
Is it a wise decision to pay off your bad credit card debt?
Sunday, May 29th, 2011
What Happens to Cosigners When the Primary Borrower Files Bankruptcy?
Tuesday, April 19th, 2011Let’s set the stage. To help his grown daughter establish credit and buy a vehicle, Don Debtor cosigns a vehicle loan for his daughter, Dawn? By cosigning, Don has made himself contractually obligated to pay the car loan in the event his daughter, Dawn, is unable to do so. Cosigners are jointly and fully liable for the cosigned debt.
Two years later, Dawn loses her job and is unable to pay the car payments, but doesn’t tell her dad. In the mean time, she had run up her credit cards in a vain effort to stay afloat and now must file bankruptcy, and she does so. The car is repossessed 3 months later and sold for $6,000 less than what was owed. (more…)
What Happens to Authorized Users When the Borrower Files Bankruptcy?
Monday, April 18th, 2011Let’s set the stage: To help his daughter establish credit, Don Debtor makes his daughter Dawn an authorized user on his Citibank credit card. An authorized user is simply that, someone that the borrower or account holder authorizes to use the credit card. However, authorized users are not contractually obligated to repay the debt to the bank. Only the borrower, in this case Don, is legally obligated to repay the debt.
Don loses his job and sadly had been unable to find work for over year. During that year, he used credit cards to make ends meet, but he is now out of credit, collectors are calling daily, one collector has sued him; so Don f-i-n-a-l-l-y decides to file bankruptcy. (more…)
