It's no secret that lenders and collectors sometimes use aggressive tactics to collect on debt. Credit card companies are among those lenders, and they have historically used tactics, mailings and phone calls to frighten and harass account holders into paying bills. Sometimes, those bills are doubled or tripled by finance fees and other penalties.
When will a credit card company sue?
While every situation is different, credit card companies generally follow a similar path with attempting to collect on overdue accounts. Because lawsuits cost money for credit card companies, they usually don't sue for small balances. They also go through a lengthy collections process prior to filing a suit.
Creditor types make a difference during bankruptcy
Both debtors and creditors have rights related to the lending relationship, and that is as true during bankruptcy as it is any other time. The type of right a creditor has to payments during a bankruptcy proceeding depends both on the type of bankruptcy and the type of creditor. Generally, there are three categories of creditors, each with a different priority for payment.
What property can you keep in a Chapter 7 bankruptcy?
During a Chapter 7 bankruptcy, you generally liquidate many of your assets in order to cover the costs of the bankruptcy -- namely, making some sort of settlement payment on debts. Because bankruptcies are meant to be used as a legal tool to clear the slate and help individuals restart financial lives, courts usually don't aim to take everything away from a person. Some property can be exempted during a bankruptcy, but doing so does require that you complete bankruptcy paperwork and procedures a certain way.
Individual debt relief lessons learned from Greece
Greece may be half a world away from Washington state, but what the nation is doing to work toward financial relief is not without takeaways for individuals living in King County. From negotiations to reform, the steps the European country is taking are steps individual can take as well.
