Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
My question involves bankruptcy in the state of: CA
Hi, I owe over $130,000 in Loan and Credit cards. If I stop paying them will I we sued later on or is the debt gone go from the creditor to a collection agency and bounce around from one collection agency to the other?
I owe
$53K to Bank of America
$33K to Chase
$7k to American Express
$27K to Capital One (business loan, guaranteed by me)
The word out there is that unless you have something under your name, if I own any property etc, or you have done fraud it is not worth it for them to sue you.
I am trying to decide between banckuptcy and letting it ride for 7 years.
Thank you for your reply.
Re: Will I Be Sued By Credit Card & Loan Companies If I Stop Paying Them?
The way it works now with credit cards is as following;
You can no longer just have your credit cards discharged in bankruptcy with a chapter 7, now it is more like a chapter 13, you will have to pay part of your credit cards over time based on your INCOME.
If you have no income at all, then you stand a chance of getting them fully discharged. It is now done by a case by case decision
To educate yourself on how bankruptcy, collections and charge offs work click on this link and you fill find tons of info on it.
I hope it all works out for you. Keep us informed;)
http://ficoforums.myfico.com/fico/bo....id=bankruptcy
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
Thank you for your reply. I want to know what happens if I don't file bankruptcy and just let it go. Will I be sued? Will they take me to court? Or they just keep calling and sending me letter?
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
These banks will hunt you down, call you 100 times a day, go to your neighbors, work etc.
After they take you to court, and win judgments, then they will make your life a living hell. They will drag you to court and have you disclose all of your income, assets and attach to whatever they can. This will not just go away.
If you decide to file a bankruptcy, they can NOT contact you at all and cant make your life a living hell. As bad as I may make it sound, it will be 1000 times worse then what I am telling you.
You can go the route of just having time pass, but I really dont think that you will be able to put up with it.:(
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
Agree, if you don't pay off the debts or file bankruptcy, the creditors will end up suing you & getting a judgment against you. If you can't pay the judgment, they can seize all your non-exempt assets that your state allows. Even if you have little or no assets to seize currently, you may in the future. The SOL on a judgment in Ca. is 10 yrs. & it can be renewed.
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
Thank you for all your replies guys. Phone calls I can handle, I will get a new prepaid card. My biggest concern is getting sued. I know after six months of not paying the creditors will sell my case to collection for pennies on the dollar.
My big question is, is it worth it for these collection agencies to sue me when I have nothing under my name and own nothing? Do they give up after 2-3 years?
I want to ride it out for 4 years till the SOL expires.
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
Quote:
Quoting
morisr
Thank you for all your replies guys. Phone calls I can handle, I will get a new prepaid card. My biggest concern is getting sued. I know after six months of not paying the creditors will sell my case to collection for pennies on the dollar.
My big question is, is it worth it for these collection agencies to sue me when I have nothing under my name and own nothing? Do they give up after 2-3 years?
I want to ride it out for 4 years till the SOL expires.
YES the banks will sue you. They have departments set up to handle things like this.
And NO they dont give up after a few years and forget about it.
It seems like you have your mind made up, so go with that and see what happens. You can always go another route down the line. You have nothing to lose either way based on what you disclosed on here.
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
Waiting it out is dangerous. Even if you think you have no assets that can be seized you have to consider that your wages can be garnished (in fact this is likely the first thing a creditor will go for once they obtain a judgment), or alternately your bank account can be attached. I have seen many clients suddenly have a garnishment attached to their bank account the day after they deposit their bank account, and then that money is frozen and they are left unable to pay their bills and with checks bouncing all over the place.
Now there are people who we refer to as "garnishment proof" but these are people who either have zero income, or their only income is from Social Security. These people have zero assets meaning no house no car, no personal property of any value, and they have no open checking accounts. So basically with these people every creditor they owe could obtain a judgment against them, but will never be able to collect on it. Of course that does not stop the phone calls, letters, etc. or the embarassment of being served every time someone sues you. If you fall into this category and plan to stay there until the SOL runs out then maybe you are ok to wait it out, but if you have a job you would be seriously jeopardizing your family's well being by waiting it out only to have your wages garnished in the end.
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
[QUOTE=AmieRenee1980;215997]Waiting it out is dangerous. Even if you think you have no assets
[QUOTE]
I totally agree with this post. What if you win the lottery? someone passes on and leaves you money or property? The time to protect yourself is NOW. To wait can be very very very dangerous.
Re: Will I Be Sued By Credit Card And Loan Companies If I Stop Paying Them?
Agree, you might not want to chance waiting. If they get a judgment against you, as per my previous post, they are good for 10 years in Ca. & can be renewed. During that period of time, you may very well come into non-exempt assets/income that creditors can seize.