Unsecured credit cards

[FL454]

My 23-year-old son has at least 10 credit cards he has ran up to $18,000 ($450/month). He also owns a home with a mortgage of $900, car payment $331, student loan $81, utilities, groceries, taxes, insurance, etc. He lost his second job 2 months ago and unable to find a second job around his first job (take home $1200/month) schedule to make all payments so I have been paying bills ($1800/month) that he can't. Question is if he stops making his credit card payments (each has a balance of less than $2,000) will they take him to court or just harrass him? Would they be willing to offer a payoff amount? Should he file bankruptcy?

 

[Michael Wechsler]

I can't answer this question. Your son is one of numerous people who are overextended. Bankruptcy is a serious issue and you should consult with a specialist before making such a a decision. Regarding going to court, there is no question he'll get there if harassing doesn't work. Selling the debt to a collection agency is another option the creditor has and your son will hear from them too. Regarding payoff, few will agree to a deal if there isn't a chance of a reasonable payoff being made. I'm sorry to hear the news but the answer won't come in general discussion.