Credit Card Debt New Jersey

Seeing a friend fall deep in debt in no time, I like to help him, get an idea of what his options are - Bankruptcy or Settlement.

He made huge debt (over 50 thousand) to 4 major credit cards while in New Jersey.

Since Feb 2006, he has no job, no nothing ... literally nothing, stopped paying, moved out of state, no contact with creditors or response to court orders. (A lot happened with other cards). Now,

Card-1:
With Original Creditor
Principal 10K.
With penalties 15K

Card-2
Been sold 3 times and with an outside recovery company.
Principal 19K.
With penalties 27K.

QUESTIONS:

We understand Bankruptcy may be best option… its apparent it’s quite easy in his case. BUT please advice on the below.

1) In this scenario, how much these agencies would agree for one time payment?

2) How should we proceed OR should we hire an attorney to do this work for us?

3) Are there any better options such as consolidating?

4) Plz recommend attorneys, consolidators, any thing.

Big Thanks.

Regarding how much the agencies would agree to a one time (reduced amount) payment depends on a few factors - age of the accounts, if they had sued and won (you had mentioned court), etc.

If the accounts are fairly recent and/or they received default judgments on them, they probably will not discount the amount much.

If the accounts are pretty old since he defaulted and there are no judgments, they may work with him on a much lesser amount.
If the accounts are past the collecting SOL with no judgments, they would probably be more inclined to settle for a greatly reduced amount since the only way they could "legally" get paid on the accounts is with his offer to pay. Or, if they are past the collecting SOL and there is no judgments, he has a legal right to send them a SOL letter informing them the account(s) are no longer legally collectible and he has the legal right to not pay.

He needs to order his credit reports to see who/what is reporting.
He also needs to contact the court clerks in "every" county/city he has lived in since his "very first" default and ask if there is anything filed in his name.

If he decides to try to work with them, he should first start by sending validation letters. If/when they properly validate he might send them his offer along with the requests that they consider it as "payment in full" and that they will delete what they have placed on his reports.

If he is considering bankruptcy (BK), he might speak to a BK lawyer.

You/he might also click on my profile and click on the last link I have listed. Do some reading in both the credit forum and the BK forum. (It is a "totally free" site with a great deal of info on it)
He will be able to get an idea of what it takes to try and deal with the creditors or what is involved in filing BK and would probably be able to decide if he would want to file on his own or spend the money to have a lawyer file for him.

Filing BK on ones own is not for everyone. If he reads through the forum and has any doubts about being able to handle it, he should get a lawyer

2007-08-30 13:46:11 by To Financial Freedom

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It depends on a lot of things. Was there a will? was the person married? did they have assets?
Whenever someone dies and leaves debts behind, a designated person (called an executor or administrator) handles the estate. If the deceased person did not have a will and was married, then, in many states the spouse automatically assumes responsibility (but not always) for the estate and, becomes responsible for paying off the debts on his or her own.

If the deceased person did not have a will and did not have a living spouse, then usually a close relative (son, daughter, mother, father, or a grandparent) is appointed as the executor of the estate according to state law. If there are no relatives, the state appoints an executor.

Even when an estate is worthless, the executor must still notify all creditors of the death. Debts from a worthless estate are generally charged off and no future collection actions are taken. However, as stated earlier, in some states a living spouse can still be held responsible for paying off the debts of their deceased spouse.

2008-03-05 06:14:05 by a&d

Hi, I have serious issues with my credit card debt. I'm in between 10-20 thousand dollars in debt. (Never accept a credit card when you're a senior in highschool). I am having serious problems paying off my credit card. I lost my 2nd job, due to conflict in schedule with my current job. Applying everywhere, no luck. What are my options, and list their pros and cons. I need sound advice. If i can get another job, then i would be better, no luck so far. New Jersey area here.

Contact Consumer Credit Counseling Services at 1-800-388-2227 they are the largest and oldest credit counseling service in the nation and have offices in most every major city.

They will lower your interest rates and monthly payments and they are non-profit.

I used them several years ago and was debt free in 36-months.

2008-09-25 14:06:52 by mc_dre

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my mother is elderly and only receives social security/disability. She has incurred credit card debt and now cannot pay back the debt she incurred. When credit card companies use attorneys to file a judgment in the county, can they (credit card company) now put the judgment into effect by taking the money out of her checking account. Which, in turn, that checking account is dwindled down to nothing by the middle of the month, because of payment of her bills?

Social Security benefits cannot be garnished for credit card debt, however once your benefit is deposited into a bank account it is no different than any other funds in the account and can be attached.

2009-01-26 07:19:16 by Stephanie D

I need a loan to pay off small credit card debt and build a business website. All I need is about 10,000 dollars. I would like to know

which banks offer best personal loans?

(best to me = lowest interest rate, more understanding, like a bank who is willing to wait for a few months before I start making payments, even though I doubt it). Anyway, which banks offer best personal loans? Thank you

Stay away from the big commercial banks. If you can join a credit union, that would probably be your better option.

2010-01-26 16:03:36 by L.E.B.