What can credit card companies do outside of bankruptcy/ in state court?

• In the event that a repossessing creditor obtains a judgment, they are typically not permitted to garnish your earnings.

• If you were working or living in another state when the creditor obtained the judgment, or if you moved here thereafter, you could qualify for an exemption.

• A creditor may try to foreclose on your home or seize your "non-exempt" assets 10 years after a judgment has been issued and recorded as a lien on the property.

How are credit card debts handled in bankruptcy?

• Chapter 7 allows for the discharge (i.e. elimination of your liability) of the repossession.

• When filing under Chapter 13, you must begin making payments on repossessions at the 1% level. Potential increases are based upon your assets and income.