Question
Credit/Collections steps - please no spam?
Hi guys, this past year has been a nightmare for me and long story short, my credit cards are maxed out -- and I have been un able to make the minimum payments (or any payments) for a while now -- I am with Royal Bank of Canada, if that makes any difference. After collections, they can garnish my wages, correct? What are the steps that happen in order -- and how long does it usually take before I am officially screwed (ie, will I get sued? 7 years no credit?) Apparently I do not qualify for debt consolidation... not sure what my options are, as my minimum payment for my credit debt (550) is almost as much as my rent (769) -- as you can see, ive cut my expenses. But there are other things in the way as well as far as financial obligations, -- and I am completely lost. Thanks guys.
7 months ago - 1 answers
Best Answer
Chosen by Asker
Not sure what the laws in Canada are but in the US it is this. (1) They will cut off your credit and turn it over to collections (2) If it is a large sum for one company they can take it to court (3) If they take it to court the judge can garnish your wages for up to 75%. They can also take everything you own and sell it for payment. Some credit repair places, the legal ones, can stop the interest and set up a payment plan. You will pay by this plan because your income check will be direct deposit and the money withdrawn from your account. A freeze will be placed on your bank account for the monthly amount of the payment. Your rent, food etc is of no concern for them. Needless to say, your credit is shot for 7-10 years AFTER the last payment to the last company. You might be lucky and they will just write it off That is the bad side. Talk to the credit repair folks, get a legal one and not a fly by night group, and they can help..
7 months ago
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