Filing for bankruptcy after consolidating credit cards
As federal courts have exclusive jurisdiction over bankruptcy laws, cases must be filed in federal bankruptcy court.
But keep in mind, these are secured loans that require you to put up your home as collateral.If you are unable to resolve the problem, you can submit a complaint to the Consumer Financial Protection Bureau (CFPB).A debt collector generally is a person or company that regularly collects debts owed to others, usually when those debts are past-due.A debt collector may not: Report any problems you have with a debt collection company to your State Attorney General's Office, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB).Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act.Your state Attorney General’s office can help you find out your rights under your state’s law.
If you're unable to pay your creditors, filing for bankruptcy can help you get a fresh start by liquidating your assets to pay off your debts or create a payment plan.
This includes collection agencies, lawyers who collect debts as part of their business, and companies that buy delinquent debts and then try to collect them.
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
And be aware that some types of debts typically can’t be erased or reduced: federal student loans, child support, and secured loans on cars and homes. If you’ve cut expenses to the bone in an effort to pay off debt and you’re only treading water (or still sinking), debt relief may be your best hope for repairing your finances.
Readers also ask When consolidating debt, balance transfer cards let you shift over debts from other cards and charge no interest for a limited time.
However, continuing to struggle may actually be a slower, less effective way to get rid of the debt.