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Credit Card Default

by on December 9th, 2013 under Wealth of Advice

Francisco J. Colayco
Francisco J. Colayco

We go back to JP’s dilemma about her credit card debt. This is her biggest fear.

“I would like to know if a credit card defaulter will be imprisoned for non-payment of debts. Ano po ba ung grounds for civil case if in case they will file it against me, do I have to show up in court?”

Atty. Marlon Valderama gave his legal opinion on her fear. “Eto ang sagot ni Atty. Marlon sa iyong tanong. Kung may tanong ka pa sa kaniya o kay Mr. Colayco, sana ay padaanin mo sa amin para maisali sa mga payo ni Mr. Colayco sa Bulgar at makatulong tayong lahat sa mga namomroblema tulad mo.

“You are asking if anyone could get imprisoned for not paying his debts. It is on Sec. 20, Art. III of 1987 Constitution that no person shall be imprisoned for non-payment of debt. But the following offenses can be grounds for imprisonment: bouncing checks that should have served as payment, acts of deception to make a debt, non-return of what have been sold under trust receipt or using of credit card and hiding from credit card collectors afterwards.

According to your story, you have ten (10) credit cards, which you have used and you can’t pay for it. You also mentioned that the credit card collection agencies are already calling to pressure you to pay your debts. Don’t be afraid because you won’t get imprisoned for not paying your debts. But you should not hide and transfer to another house or place just to avoid the criminal case because this violates the Access Devise Regulation Act of 1998. According to the Supreme Court case of Macalinao vs. BPI, there is also a way to re-compute the interest rate and penalties and thereby lower your payables. Don’t sign any agreement without consulting an attorney. And for the harassments that you had experienced from the collection agents, I have a lot of legal ways to stop them. Just don’t try anything violent against them. Consult www.e-lawyersonline.com to avoid legal problems and seek solutions for your problems.

Atty. Marlon P. Valderama can be contacted through his email address at attyvalderama@e-lawyersonline.com. However, it is best that you send info@colaycofoundation.com a copy of your email to him so that we can assist in clarifying issues that are related to the financial matters of your inquiry.

Take our seminars that can start you into the practice of studying and analyzing your personal finances and you personal investments. Check out www.colaycofoundation.com.

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