I owe about $11,000 on a Citibank credit card and they won’t make me an offer that I can afford. They’re threatening to take me to court.
When you sign an application for a credit card you are entering into a legal agreement to repay that loan. And a credit card is a loan.
If you fail to pay, the creditor can take advantage of all the things you agreed to in that cardholder agreement. If you break that legally binding agreement a creditor can take you to court to enforce the agreement through a lawsuit and go on for a wage garnishment or judgment.
If you can afford to make some payment then you should explore a debt management program to see if that is a valid solution. Otherwise you can take your chances at court when Citibank sues you.
Even if you present a good reason at court why you can’t pay right now you may still lose at court since this issue is almost purely a matter of law, and you did break the agreement by not paying as promised, and that court does not have the power to change your legal agreement. But another court does, the bankruptcy court.
Bankruptcy is the only legal tool you have to force the creditors to either accept a payment you can afford or wipe the debt out completely. You should go talk to a bankruptcy attorney and see if bankruptcy is right for you. Click here for a free bankruptcy consultation with a local bankruptcy lawyer.