75K Credit Card debt & home in foreclosure

[bjwill]

We are in the foreclsure process & are trying to process loan modifications to by time so we can stay here longer. My husband was in the New Home industry and lost his job 2 years ago, go some part time work and now is working 5 hours away for 1/3 of his previous salary. We have resigned ourselves to take the credit ding for the foreclosure and are now trying to decide what to do about our 75K in credit card debt. Should not have used the CC's to pay bills, but who knew it would drag out for this long!

Is it true that CC Companies have insurance that pays them up to 70% of the debt when a consumer does not pay?

So need information about informal bankruptcy. All our CC's are in either my name or my husband. We don't have any cards with both names. I want to just stop paying my CC's. If possible we will pay his cards to try to keep all the bad stuff in my name? Besides the horrible calls, in California can they:

Garnish my wages?
Garnish my husband's wages?
Place liens? And where would these be placed?
How long before they write off the debt?

Answers to these questions and any feedback is GREATLY appreciated. We want to start over and get this nightmare behind us.

 

[Michael Wechsler]

To begin, don't think that because an insurance company might cover some losses you'd just get out free - someone is paying for your debt and they don't care to pay and not get the benefit of the money they've just handed out. I'm not sure why many debtors think that because one party is made whole that there isn't a party who is holding the short end of the stick and will remain happy about the entire affair.

All of the above items can happen and the debt you will be required to pay could grow if collection fees are required such as court filings, etc. Do you have any assets? Are these debts far in excess of your ability to pay? If so, you may be looking at a bankruptcy proceeding as your best alternative. I really don't know your situation but it seems to me that you spent far in excess of your means. Suffice it to say that those whom you owe money to will come to collect it. Best of luck to you.