I am currently going through a divorce. We have put out house on the market and hoping it sells. We have plenty of equity in the house and are planning on using this equity to pay off credit card debt of about 40,000. I was enrolled in a debt settlement company for the last year but the payments were killing me and I had to unenroll in the program. Because of being in this settlement program, the credit card payments are seriously delinquent already.
Can a negotiation be reached with credit card companies if they know I intend to pay off this debt as soon as my home sells and I have the cash to pay these debts?
Once I get the cash in hand from the sale of my home, can I settle each of these accounts myself instead of using a debt settlement company. As you know, the debt settlement company charges fees and those fees were putting me MORE in debt.
I have had no contact with these creditors for a while as I got rid of my land line and was letting the debt settlement company handle the creditors. What are the chances these creditors will wait to be paid if they know I do intend to pay them once I have the money. If judgements are filed against me by these creditors, what will happen if I can’t pay right away? Will I go to jail???
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You are not going to jail. If debtors like you went to jail there would no space in any jail in any place in the country. You are just a good person that is stuck in a bad situation.
Laying low right now is a good idea but it won’t stop the creditors from suing you if that is what they want to do. The only way you can prevent them from suing you right now is to go bankrupt and then enjoy the protection of the court.
When and if you do get the money to settle the debts I do suggest that you work with a debt settlement company to help you with the lump-sum settlements. They will have experience doing this and will know the best deals possible. While there will be fees for the service, the savings can be pretty large as well.
In this economy, I’m not confident that your home will sell quickly. I would suggest that you click here for a free bankruptcy consultation and go and speak with a local bankruptcy attorney to see if you could protect the home in bankruptcy to get the creditors under control and avoid being sued, at all.Will I Go to Jail Because of My Debts? - Pam by Steve Rhode