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About to go to collections - questions...


OgreMkV
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So I've got this large credit card debt. The company basically screwed me by not ever informing me of a missed payment during an 'arrangement'. Now my rate is all but 30% and I'm about to be five months behind... I just can't justify sending them $300 to 'hold it over' for another month and let the interest accrue.

I've offered to pay a little bit each month if they'll stop the interest, but it's either $390 a month or nothing... so I guess it's nothing.

I figure they'll hold it for another month or two and try to get rid of the debt after the first of the year.

So this validation process, doesn't really affect the debt, just the creditor agencies ability to collect, yes?

Is it effective for brand new debts like mine?

What about the 'dispute' notification to the CRA? Is that there forever (or 7 years)?

I've read all the how-tos and stuff, but I'm pretty nervous. I mean, even if a court ordered me to, I couldn't pay it. I live in Texas so my wages can't be garnished and I can't lose my house (although I'm willing to give it to them, they wouldn't take it).

I appreciate any advice or help.

Thanks

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Just a couple of loop holes in the Texas post judgment garnishment. If you are employed where payroll is generated outside Texas it can be attached also if you bank at a national bank funds can be seized. Other than that you are largely protected in Texas, and yes you can exempt firearms.

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