If you have credit card debt you cannot afford to pay and you wish to eliminate it without bankruptcy, consider these actions.
- Stop paying monthly credit cards bills you cannot afford to pay and focus on paying more important monthly necessities and
- Learn more about the realities of credit card debt collection and how you can make non-payment work for you.
- Do not engage in credit card debt settlement that saddles you with more payments and simply prolongs your financial stress and bad credit. Learn from my experience on how to eliminate credit card debt without bankruptcy.
How to Get Rid of Debt Legally Without Bankruptcy
While many financial advisers may try to fool you into thinking there is only a choice between bankruptcy or debt settlement; there is another option to get of debt legally. Simply stop paying your unsecured credit card debt. Do not allow yourself to be misled into credit card debt bankruptcy or paying off credit card debt through consolidation. Bankruptcy should be your last resort. In reality, there is a big chance that you can eliminate your credit card debt without bankruptcy. You can handle debt collectors with the proper use of the Fair Debt Collection Practices Act. Under the FDCPA you have the right to deny and dispute your debt, to demand documentation of your debt and to instruct debt collectors in writing to stop all collection activities. Denying and disputing a debt you owe is not a reflection on your character, it is simply a legal strategy to force debt collectors into properly documenting your debt. Never admit to the debt and do not get tricked into doing that by a collection attorney. Your deny-dispute-demand documentation letter serves as notice that you are going to be difficult to deal with. Debt collectors work on commission. They do not get paid until you pay them. So, would they rather work with legally-difficult people who know what they are doing, or with other consumers willing to ignorantly submit to their demands? They will go where the money is, while you get rid of your debt.
Collection Attorneys Are Considered Debt Collectors by the FDCPA
But, you ask, what about the eventual credit card lawsuit? Collection attorneys are just like debt collectors. They follow the money. The FDCPA considers them debt collectors first, attorneys second. They must respond to your debt validation letter. The right letter tells them what documents they will have to produce should they initiate a credit card lawsuit against you. In my case, two collection attorneys for debts totaling over $30,000 stopped contacting me after receiving my letters sent CMRRR. (Over the years I have developed and improved my debt documentation letters to do what other debt validation letters ignorantly do not do, and to give collection attorneys good reason not to sue you.)
Eliminate Credit Card Debt Without Payment
If the collection attorney is representing a junk debt buyer, they will have difficulty producing documents (an original contract and an accounting for the alleged amount owed) from the original creditor. If the collection attorney is representing the original credit card bank, they too will have difficulty producing proper documentation supported by a signed affidavit from an employee with personal knowledge of the alleged account. Apparently, it is just too much work for the bank to properly document defaulted credit card debt. In many cases, an informed answer to a credit card debt summons demanding documentation is enough to make the collection attorney drop the case.