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suzyq2u63

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Should i file bankruptcy if i my wages are about to be garnished for an old credit card debt?
Will filing for bankruptcy stop or prevent wage garnishment? I have several 5+ yr old credit debt balances. I am current on 2 car loans, rent etc. I have no current credit card debt. My husband & I got into debt before the big crash, he lost his job (I was a stay at home mom) and was unemployed for 10 months & we wiped out our savings and lived on credit cards. Since then my husband was re(under)employed, but is now on social security due to emphysema, and I'm now the one who is employed with a modest income. Should I file? Will it stop garnishment? We also lost our home, but somewhere amongst our several re-finances my name fell off the loan. So I don't think that is on my credit. I have nothing left to loose.

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Don't panic!!

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Who said there was going to be a garnishment on this credit card?  Was it a debt collector? If so, that one is in violation of the Fair Debt Collections Practices Act because they are not allowed to make threats..  And that debt (5+ years old) could be what's known as "out of statute" and uncollectable anyway.  Do a search for Statute of Limitations for Collections and check under "open end accounts" which is what credit cards are.  I live in OR and the SOL for this state is 6 years.  In many states, it's 4 yrs.

Go to annualreport.com and get copies of all three credit reports so you can check what is on there that should be and what should be disputed and removed.  Have your husband get his credit reports, too.  Then you can get an idea of where you really stand in this situation. You should be able to find out what the age of the debts are so you can plan accordingly. 

Credit cards are very low on priority for repayment in a bankruptcy (been there) and in some cases they don't even get paid when all is settled. 

A bankruptcy will hurt your credit for 10 years where a credit card drops off in 7 and vanishes.  You are building yourselves back up by small steps, so doing everything possible to keep things on the upswing would be good.  I'm going to check out a few more things on FDCPA and will try to get back later.

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