Should A Person File For Bankruptcy If They Have To Borrow To Pay Credit Card Bills?

This would be as bad as someone borrowing money from their 401K to pay off the debt. An equity line of credit, credit card debt, medical bills and payday loans are all considered unsecured debt, meaning there is nothing the person owns that is collateral for that debt. It is not like a car loan, mortgage or home loan, but taking a home equity line to pay off credit card debt turns that unsecured debt into a secured debt, and once that is done, the person would be obligated on that debt. There is not a lot that can be done if someone chose to do that before they talked to an attorney about filing bankruptcy, because the best thing to do would be to just get rid of the unsecured debts through a bankruptcy filing or something like that.

What About Borrowing From Credit Cards To Pay For Credit Cards?

This would be another sign that the person was struggling, because just transferring debts would not actually be getting rid of any debt. They might reduce their interest rate for a short period of time, but that does run out eventually and then the interest rates go back up to what the person was paying before. They would definitely be in financial trouble if they were transferring debt from one credit card to another credit card, and bankruptcy would be a way to get out of that and get rid of all that credit card debt. People always say they have to have a credit card, and they will get an opportunity to have a credit card again. I always advise my clients that when they get these offers to make sure they review them carefully because the interest rates will vary from 7 or 8 percent all the way up to 25 percent. The person will get offers for credit cards again, but the practice of borrowing from one to pay for another one is just like robbing oneself, so the person would not be getting anywhere and just be digging themselves into a deeper hole. What they should do instead is to discharge that debt in a bankruptcy.

Should A Person File If They Are Getting Harassed Frequently By Creditors?

Creditors have a right to call or contact a person to try to collect what is owed to them, but they have to be reasonable about it. The hours when they call need to be reasonable, so they cannot call too early in the morning or too late at night. They can also call the person's family or call them at work, but it would mean that the person was in deep financial problems if creditors were calling, so their best solution would be to probably file bankruptcy to get rid of that debt, because that would also get the creditors to stop calling. People would know the person's business if creditors started calling them at work, or if they started calling friends and family members. There was even a credit card company who called a client's neighbors to get information about them! If creditors are calling, then it's time for the person to seek relief and counseling and maybe file bankruptcy.

For more information on Credit Card Debt, a free initial consultation is your best next step. Get the information and legal answers you're seeking by calling 330-591-4729 today.