McCarthy Law PLC

Should I Go Bankrupt?

If you qualify for a fresh start bankruptcy, our advice is to bankrupt assuming your debts are significant. Because one can only go bankrupt once every ten years, we don’t recommend going bankrupt (absent extraordinary circumstances) with less than $35,000 in debt because BK costs 2-3,000 and workout costs $21,000. The right to bankrupt down the road is worth more than $18,000.

How many points will defaulting on my cards bring down my credit?

In general, you should anticipate that your credit score will drop 100-150 points post-default. By law, a credit card company is required to “charge off” (remove your debt as an asset on their balance sheet) after six missed payments. Once it is charged off, the credit card company can no longer report you as late. Non-payment negatively impacts your credit score for 12 months after the last negative. Accordingly, 18 months after the first missed payment, the missed payments will no longer negatively impact your score. That doesn’t mean your score goes up. For it to go up, the underlying debts

Can the creditor call my work?

Yes, the creditor can contact you at work subject to the restrictions under the FDCPA. Pursuant to the FDCPA, collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there. Debt collectors do not include employees of the creditors themselves.

What if I cannot make the monthly payment?

It depends on the reasons underlying the non-payment. If your financial circumstances have changed (ie. lost your job or a significant source of income), we may need to re-evaluate your options including bankruptcy. If it’s an isolated incident, we try to work with clients to get them back on plan.

Do you do bankruptcy?

We do not offer any kind of bankruptcy services, but we can recommend lawyers who we are confident can help folks who need to pursue bankruptcy.

What if I get sued?

Less than 10% of our current accounts in workout are in litigation. Whether you are sued depends on how fast we can put together settlement monies, how much you owe, which bank is owed, and how long it’s been since your last payment to the bank. In the event you are sued, we will represent you in the suit for $500 plus the cost of filing an answer on your behalf. We represent you all the way thru trial, if necessary.

What do I need to dispute an error?

To dispute an error, you need proof that the error is a valid error. Contact McCarthy Law to find out more.

How long does a delinquent account report?

Delinquent accounts report for 7 years from the date of first delinquency.