Stop paying credit card bills?

Question

Hi,
I recently visited a BK lawyer and he said just don't pay them any more.
I have several small balances.
Capital One 600
Providian 1000
Orchard Bank 300
Bank of America 3500
Sears 1000
NY&Co 350
Not a whole lot of debt but can't afford them all. I live in NC and wage garnishment doesn't happen. What do you think about not paying?

My credit is already bad from $40,000 in medical bills. I really don't care what happens to now. I am not planning on getting loans on anything else. The house we own is in a different name and protected. The credit card companies don't have my new address or a working telephone number.

The BK lawyer said the amounts weren't high enough to consider bankruptcy. But financially we are at the point of feed our kids or pay the credit card. Sorry but hungry mouths come first. I just want to know what happens if you don't pay them.

Answer 1

you can not pay them but they will be sent to collections and they will be harrassing you
also you will ruin your credit rating

Answer 2

OH MY GAWSH!!! DO NOT LISTEN TO HIM! What he is doing is trying to get you to not pay your bills so that in 4 months or so he would hope you return to him to file a chapter 7 bankruptcy. DON'T STOP PAYING!!! YOU WILL RUIN YOUR CREDIT! If you can, just pay the minimum payment on the ones you can. Then call the other cards and strike a payment plan deal with them. They will be more accecpting to get their money this way then not getting it at all. I am a licensed mortgage broker in Ohio and I see this ALL the time. Lawyers want you to default to a poin that you are forced to file a bankruptcy. If you do not own a house, then a chapter 7 bankruptcy is an option. This irradicates ALL of your debt, whiping your slate clean. It takes awhile to rebuild your credit, but it gets rid of EVERYTHING. If you do own a home, a chapter 13 bankruptcy may be ideal for you, again - ONLY IF YOU FEEL THAT BANKRUPTCY IS AN OPTION. I never advise my clients to stop paying their bill. What a bunch of bull.

Answer 3

You shouldn't just not pay the bills. They will stay on your credit report for 7 years. So if you plan on buying a car or a house or needing a line of credit for something else, not paying these bills could hurt your chances of even qualifying for a loan/line of credit. If you do qualify for a loan, chances are your intrest rate will be higher because the banks will look at your credit report, and see all of these unpaid bills. In the banks eyes, you not paying these bills makes you a bigger risk than someone who has a good credit history.
You should pay what you can, even if it's $10/month. You are responsible for these bills. You signed your name to the applications saying you promised to pay in full. If you decdie not to pay these bills it's just like stealing.

Answer 4

You need to call these companies and tell them your situation.

Why the heck are you talking to a bankruptcy lawyer, when I just know you haven't called each one to work out a payment arrangement.

You need to re-do your budget figure out how much you can pay a month and start negotiating with your creditors.

They want YOUR money and any money is better than the proceeds they would get out of bankruptcy.

Lawyers are a last resort when ALL of your individual negotiations with your creditors have failed.

TALK TO YOUR CREDITORS!!! It is in their best interest to negotiate with you for an agreeable solution to your financial problems.

And just remember, your credit is an extension of your character. Man up, face the creditors, and take charge of your future.

I suggest you negotiate verbally first. Then by certified letter second. Then if you can't get it resolved, then and only then, consider bankruptcy.

Answer 5

You don't want to hear this... LoL You need to pay your bills. Unfortunately a bankruptcy can within reason take things you currently own such as a TV, spa, bed, or anything they consider luxury items and sell them off to pay off your loans. Bankruptcy is not meant for people to run up a bill and then say "Oopps... can't pay sorry. Thanks though." Find where you can cut costs on your own. And do everything you can to stay away from bankruptcy. That should only be a last resort as you will carry that for 7-10 years.

Answer 6

I think you should pay them. If you don't pay them, I end up paying them. That's why there are 18%+ apr's on those things.

Try and do some balance transfers or take out a consolidation loan. Otherwise, those guys are going to hound you forever and your credit score is going to be screwed. No getting a house, car, job, or student loans after that happens.

Answer 7

I have no idea why anyone would tell you to stop paying them..

If you use your salary to pay the minimum balance on each card each month, it could take you as much as 20 years to pay them all off.. Interest charges and overlimit charges and late charges will kick your butt..

What you do is start with the cheapest one - pay it ALL .. next paycheck pay the next cheapest one, and so on and so on until they are all paid off

This is a proven technique that most experts reccomend to succesfully get yourself out of debt.

Answer 8

A friend of mine had balances so huge, yours would seem like pennies. She went through bankrupcy, and the lawyer told her the same thing. $33,000 in credit card debt gone in one afternoon. On top of that, she and her husband bought a house at a decent interest rate.

Answer 9

Ny&co Credit Card Payment

Answer 10

No, not paying is the last thing you should do, as it'll just drop you further in the sh*t.

Visit the "get out of debt" section of leading financial website "The Motley Fool".

US Version
http://www.fool.com/ccc/debt/debt.htm

Answer 11

I think that makes you a jerk.

Personal responsibility and ethics should cause you to pay what you owe. You're foisting off your lack of ability to be fiscally responsible onto everyone else who is. If you can't pay the minimums then pay what you can each month.