Can a collection agency force you into bankruptcy for a charged off credit card?

Answer 1

Most of the people answering this question don't have a clue. Federal Bankruptcy Law allows a creditor or interested party such as a stockholder for a corporation to force an "Involuntary Bankruptcy". It is rare but can occur.

But it is extremely doubtful that a collection agency would bother with forcing a bankruptcy unless they are owed a significant amount of money from the debtor. Many collection agencies actually buy the debts from the original creditor and that gives them different rights than if they are third party collectors. Again forcing an involuntary bankruptcy is rare but it is possible.

Good Luck

Answer 2

They would do what they could to make arrangements so you could pay your debt easier. They might also tell you some things to discourage you from filing bankruptcy, even if it looks to you like it is your only option. Collection agencies aren't so willing to believe just how bad it may be, making it impossible for a person to pay even smaller payments for a while. But they can't force bankruptcy on you, and definitely won't, because they want the money owed to them.

Answer 3

No one can make you file bankruptcy. We had many items that were charged off due to a bad ex husband. We wanted to buy a home so we filed bankruptcy on all the old charged off debt on our credit and we were able to purchase our home. A bit higher interest rate but nothing too bad.

Answer 4

If the account was charged-off and sold to a collection agency, there's not a thing they can do and you should tell them not to call you anymore.

Answer 5

First, debt collectors don't care about statute of limitations, they care about the commission check, so don't even waste your time about that. Find out as much information as you can.
For instance, how long have they had the account, where did they get it, and NEVER GIVE THEM ANY INFORMATION ABOUT YOU, YOUR JOB, NOTHING. If they don't like it too bad. What I am going to explain to you is not pleasent, but it is the real world and this is how it works.
First and foremost, DO NOT EVER CALL THEM. ONLY FIND INFO OUT WHEN THEY CALL YOU...Every time you call them, they can, through a little know law, can change the date of last action to the day you contact them... (you can find this info under full faith and credit laws. Findlaw.com is a great help for the layman)
Here's the problem, and believe me there are groups lobbying for changes to this crap.
You have a bad debt that goes to collections. A collection agency tries to get you to pay, you don't and after awhile they sell your account to another credit collection agency. There is a little loop-hole in the law...
The loop hole is that when the first collection agency gets the account, you have a charge off on the original lender with a "date of last action" 1-1990, for example. The collection agency that takes it over now has the same debt, under their name with a new "date of last action" 1-1993.

What is happening here is that you now have the original creditor showing a charge off on your credit for 1990, and the collection agency has the debt on your credit for 1993. The 7 years statute of limitations starts with the first creditor in 1990, removable in 1997. THe collection agency has you from 1993, removing you in 2000. Can you see the pattern here? It happens often; 1 debt 3-4 derog's with different companies with different dates, keeping the damn thing on your credit for well over 7 yrs... Getting them removed, is like having ice cold lemonade with the devil...
Collection agencies have gotten smart, sort of. They keep selling these old accounts before the statute of limitation is up, thereby keeping the same bad account on a person's credit for years, litteraly.
The one saving grace for the consumer is that after the original creditors time is up, 7 years, the collection agency, depending on your individual state laws, usually cant sue or garnish your wages for the balance owed.
You must be aware, that every state has different laws. The federal law that governs this is the FDCPA,(Federal Debt and Collections Practices Act) and the Full Faith and Credit laws of the US.
Keeping the above in mind filing BK will potientially eliminate debt, but with the recent changes of the USC Chpt 11BK codes in order to file chapter 7 (total liquidation) your income must be below your individual states poverty levels. For a 13, you have to have income enough to satisfy a percentage of debt over 5yrs, known as the "plan".
Unless this collection agency intends to sue, which they can, depending on the above information, and you lose, they can then garnish your wages. (these laws are an entirely different subject, and they are so different state to state) Should that happen, some employers will discharge you, making it difficult to pay other bills, like house, rent, car, utilities, etc, and THAT may force BK. In addition, if the collection agency is trying to collect on back child support, and some states will use that method, BK will not be helpful as child support CANNOT be discharged through any BK filing, 7 or 13. Another important note on this is if the collection agency is collecting on what is known as a deficiency balance that can hold on a credit report indefinatly, depending on state requirement.
It is important to understand a basic premise with FDCPA and Full Faith and Credit laws of the federal government. They set the minimum standards to which every state must abide by, however, every state has an option to expand upon those minimum standards and that is why some things vary from state to state. On a national level, a BK will stay on your credit for a minimum of 10yrs, federally speaking, however, when it comes to future large purchases like a home, in some states it will never go away.
I would suggest for you to contact your local credit reporting agencies, Transunion, Experian, and Equifax and find out how they are required to proceed under your state laws. Also, the web has extensive information, state by state on this as well.
A tip: If the collector intimidates you, threatens you, or otherwise violates any collection practice laws as set by FDCPA, you can sue them, and let me tell you, if you can provide proof of this you will win big-time... Proof requires recordings, written letters, documentation, and if you are on SS or are disabled and over the age of 62-65, they can't sue you period.

Answer 6

Your below minimum fee is coming up a default because of the fact the "lacking" quantity is only further to right here month's minimum fee. in case your minimum fee is $40 yet in one month you pay purely $30, the subsequent month's minimum fee would be $50 ($40 + the lacking $10)

Answer 7

No one can force you to file bankruptcy.

Answer 8

No - the collection agency can't do that, only the prime company.

Answer 9

no. check out the website below for other usefull information.