I will try to address some of your questions

By | May 13, 2016

The first thing you need to realize is that laws are not the same through all the states. Some states have a 6 year statute of limitations on debt collection, other states only have a 2 year statute. Bankruptcy laws, although Federal Statutes, are also subject to change by each state. In some states you can keep your home if you file bankruptcy, in other states you cannot. I would recommend you contact a qualified attorney and plan on a long conference. Once Consumer Credit Counseling advises you they can’t help, you are basically too far gone and need to see a lawyer.

Honestly they are likely to go through a lengthy attempt to collect the debt prior to starting a lawsuit. Lawsuits are not cheap so they will try to exhaust other remedies first. Local debt, such as local banks and merchants are more likely to start a lawsuit quickly than national companies.

They accrue interest, at the statutory rate, not necessarily the credit card rate. Judgments usually last for 10 years, but can be renewed for another 10 in some states, like New York.

Doing anything to hide assets, or misrepresent them, can cause the Courts to determine you are attempting to defraud creditors. In any court action, you need to be absolutely honest and above board. An attorney in your area, well-versed in debt collection and bankruptcy, is your best bet to guide you on what can and cannot be done, and how to do it to achieve your goals.

There are legal proceedings, where the debtor is put under oath to tell the truth. This is one way creditors find assets. See #5 above. Freezing a bank account usually occurs after a judgment is taken (you lost the lawsuit) and a garnishment of assets is filed. They are not always done at the same time, and the garnishment or levy of assets is often done later.