What Every West Coaster Should Know About Credit Card Debt

Burdens Of Matrimony

Although most couples residing with the state of California primarily concern themselves with the expected split of monetary assets owing to the local government’s famed community property states, the very same regulatory parameters have resulted in a broadly defined mix of debt obligations that could leave unwary former spouses stuck behind the eight ball following a quick divorce.

While much of the uncertainties could be eased by employing an attorney specializing in marriage law – as well as, of course, taking advantage of a simply worded prenuptial agreement to minimize doubts and mistrust throughout the duration of a partnership – you’ll need to appreciate (for any future credit card debt relief aspirations) the extent to which an ex spouse’s revolving lines of credit assumed during a marriage could wind up as your problem alone should the bygone husband or wife be unable to avoid bankruptcy protection, leaving you at risk of lawsuits.

Don’t Limit Your Freedoms

While the purpose of any credit card debt relief efforts should be to ensure that the problems are taken care of prior to entering default, there are actually some circumstances where this designation could help the consumer along the way to eliminating all unwanted outstanding obligations from his or her credit report. Primary among these – though the attempt should clearly be seen as a last resort and could feature no end of troubles along the way – would be waiting for the statute of limitations to take hold and thereby prevent the creditors from utilizing the California civil court system to institute further penalties as a method of debt reclamation.

Importantly, according to the laws of California, you have to wait only a period of forty eight months after the last reported check or payment to the creditors before the statute of limitation officially takes hold, but, at the same point, don’t expect the lenders to inform you of this fact. They’ll pretend ignorance well after the relevant statutes have passed.

Settling Differences

The credit card debt settlement negotiation alternative has been a lightning rod for controversy around California as well as the rest of the nation, and the state legislature housed in the Sacramento capitol has spent much of 2017 discussing the advantages and drawbacks of proposed Assembly Bill 350 which would dramatically change the financial blueprint for every settlement negotiation firm doing business within the state borders. Under Bill 350, these companies could no longer demand their own compensation packages prior to actually performing any degree of labor beyond a cursory analysis of prospective customers’ debt relief possibilities, as was formerly the case.

Much as this may initially hinder the business strategies of all settlement firms, many of the newer ones are barely able to make ends meet under wafer thin operating budgets, the old way of managing fees had resulted in a small portion of the settlement clientele falling prey to mercenary debt relief merchants (and, in so doing, allowing their credit scores to fall and their opportunities to diminish until they could not avoid bankruptcy declaration).

Presuming the legislation does pass through the California house and senate, sweeping changes throughout the industry should be expected, and the consequences should ideally accomplish a winnowing out of the less acceptable forms of credit card debt relief to the benefit of all Californians.