huge credit card debt

Submitted by simon on Thu, 04/01/2010 - 07:29
Forums

Hello everyone,

first off, great people here with very good advices!
I've learned a lot and got some great infos.

I reside in NY
I have 4 credit cards with around $10,000 - $15,000 debt on each card.

I've missed payments more than 120 days (they have been charged off) and CAs are calling all day long. I lost my job and i have not been able to pay any credit card bills.

I own a house that has some equity approx. $80,000. house mortgage is paid by all of my family together.

My question is that if I gift this house to my son, can creditors still sue against me and put a lien on my home?

pls help.

Hi Simon,

As you are finding it difficult to pay off the credit card debt, and as you have 4 credit cards, you can try to consolidate your debts. Debt consolidation is the process where you take out a loan to pay off the other debts. In debt consolidation you need to make a single monthly payment to the debt consolidation company. The company in turn disburses your payments to the creditors. With debt consolidation, the interests on your credit card gets lowered.

Hope this helps.

Regards,

Aaron

Thu, 04/01/2010 - 07:45 Permalink

Debt consolidation is a good option available to you as you are having you own house around 80k so you will get a loan against it at lower interest clear your debts with that money this is one option the option you are thinking is bankruptcy but before going for it I would suggest you to consult a professional lawyer.

Thu, 04/01/2010 - 16:41 Permalink

they are not doing much refinacing for people. Most banks will not lend more than 75% of current home value. 80k seems like a lot of equity but unless the home is worth more than 320k, he won't be able to borrow anything.

I would talk to an attorney about gifting the home to your son. and do it quick.

Thu, 04/01/2010 - 18:26 Permalink

thanks for the advice.

the house is worth about 400K. loan will be tough.

i will have to pass it on to my son. i'll probably go back to my country.

Fri, 04/02/2010 - 04:15 Permalink

The debts will toll if you leave the country. that means the statute of limitations will freeze until you return.

Fri, 04/02/2010 - 17:30 Permalink
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