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  1. #1
    Join Date
    Jan 2010
    Posts
    8

    Default Past Due on One Credit Card

    Hey I have a total of 7 accounts on my credit report ..Three student loans which are in forbearance , a car note ,two store credit cards and one visa ...All in all, I have 15 accounts on my credit report but only 7 are active .. I am paying every other bill accept the Visa because the bill is extremely high and I am out of work ..My other 2 credit card bills are $30 total each month and my car note is $200.I fell delinquent on my Visa via my credit union and they sent me a letter stating they can sue me and report my balance as income to the IRS ... is the IRS part true ?
    I don't care about the sue part because I don't have any income or any assets ..

    But since I am on my Mothers banking accounts as a secondary , should I remove my name from her banking accounts ?What are the chances they will sue me although I told them I don't have any income or assets? Do they sue based on the amount owed ? Its only two months behind but I will never pay them because the minimum payment is $375.00 per month and I'm going on a third month delinquency..The total balance is 11,000.00..

    I'm just curious because my friend let her credit cards go 4-yrs ago and they said the same thing about suing her while she was in College , but they never sued her ..Her balance was 17,000.00 on one credit card and a total of 35k in credit card delinquency. ..I Assume laws have changed since then so that is why I'm asking ..


    Oh and I live in PA!

  2. #2

    Default Re: Past Due on One Credit Card

    Quote Quoting Grad09
    View Post
    I fell delinquent on my Visa via my credit union and they sent me a letter stating they can sue me and report my balance as income to the IRS ... is the IRS part true ?[/B]
    I don't care about the sue part because I don't have any income or any assets ..

    But since I am on my Mothers banking accounts as a secondary , should I remove my name from her banking accounts ?What are the chances they will sue me although I told them I don't have any income or assets? Do they sue based on the amount owed ? Its only two months behind but I will never pay them because the minimum payment is $375.00 per month and I'm going on a third month delinquency..The total balance is 11,000.00..
    Yes the IRS part is true, they "can" report it as income for you, but if they do than they would be sending you a 1099 form. This is usually only done if you settle or file bankruptcy, otherwise they let the debt float as long as they can.

    You being on your mothers account has nothing to do with anything, there have been rare instances where credit unions have illegally seized funds across family members, but like I said that is illegal...


    With no assets there is no rhyme or reason to whether they will sue you or not, if you had assets that would be different. But you still want to avoid a judgment because chances are you will work again and be subject to wage garnishment, which is exactly why banks sue younger employable people with no assets, because of the strong possibility that they will work again someday and end up paying back something.

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