Unpaid credit card queastion?

Question

Due to illness and having to give up a good paying job. I don't see me ever being able to pay off some credit cards ever. its been 5 years on some now. Is there a time limatation where this goes off your credit rating ? The interest has added up and just keeps going up.At some point do they give up and count this as a loss? Or does this just continue all your life untill you pay it off? if so I'm in major trouble. I have not and will not regain my health to the point of being in a point in my life where I can get these paid off.

Answer 1

First off, they cannot just up and decide to grab your home. They would have to file suit and win AND what they can take would depend on your states exemption laws.

If you are on SSDI they cannot garnish it.

There are a couple different statute of limitations (SOL) that you should be aware of for your credit card debt.

One is the reporting SOL. The SOL starts to run the first time you became 30 days late and never brought the account current leading to the charge off. The reporting period is 7 years.

The other is the SOL for collections. Each state is different. You would have to look up your states SOL to see if you are out of it or close to being out.

If you are out of SOL, they can continue to "try" to collect until the cows come home but they cannot legally sue you. They cannot legally re-age the debt and place it on your reports after the original 7 year reporting period.

As for filing bankruptcy, that would probably depend on how much you owe, if you are still within the SOL for your state, if you are considered judgment proof etc., etc., etc.

I would suggest going to the site I've listed.
Do some reading in the newbie forum first, then do some reading in the credit forum. If you are possibly thinking of bankruptcy, there is also a bankruptcy forum where you can find the information for your state.

Everything on that site is free to read and use and has a huge member base that can assist you with any questions you may have. Many people on that site has been there, done that and has stuck around to freely help others.

Answer 2

The credit card companies have succeded when they consumers paying off their debt for the rest of their lives.

Well, first of all, you don't want to go through a consumer credit counseling service... A lot of them claim to be non-profit but are in fact under scrutiny by the IRS...and for-profit counseling services just stiff you dry...

As far as I know, any negative items, or open accounts go off your credit report after 7 years or so. If the account is still open or charged-off and unpaid for, then it remains on your credit report. A lot of the times when an account is unpaid and is nearing the 7 year mark, the credit card company or collection agency will begin sending letters out and restart collection efforts. What this also does, and a lot of consumers don't know, is that it causes the accounts to "reset" for lack of a better term and you have to wait another 7 years for it to come off...

Due to your illness and your loss of job, which is called hardship in this industry, can help you out in this situation. If the accounts are past due and about to charge-off, or it's in collections or at a law office, then you can submit your hardship information to negotiate a settlement. (Please note that you SHOULD probably have money to be able to negotiate a settlement or pay-off amount.) Some creditors may even work with you on a payment plan for a settlement amount.

For example: You may owe Chase cards $10,000 and the account is about to charge-off. You can call them up and say that you can only afford to pay $3,500, $4,000, $5,000 or so... Creditors will gladly take .30-.50 cents on the dollar... especially when they know that you could stop paying them at any moment for reasons of loss of job, decrease in pay, or bankruptcy...

At this point, your credit rating is the last thing you need to worry about if you can't pay off your cards... They never give up collections efforts, this will continue until you pay them off completly. You have to do something now before it's too late...

Hope this was helpful in some way and informational.

Answer 3

Three Suggestions 1) Consolidate your debts 2) File bankruptcy (bankruptcy is not advised for all cases) 3) Contact a credit counselor:


Ways to Consolidate Debt
http://www.debt-explained.com/category/Ways-to-Consolidate-Debt.html


How to Avoid Bankruptcy Explained
http://www.debt-explained.com/category/How-to-Avoid-Bankruptcy-Explained.html

Credit Counseling Programs
http://www.complete-debt-info.com/category/Credit-Counseling-Programs.html

Answer 4

The marker to determine if you should file for bankruptcy is when you know it is financially impossible to pay off the incurring interest charges (i.e. you make less per month that the minimum balance for that month). I heard this from Suze Orman on her show. She also said that you should immediately file for bankruptcy before the credit agency decides to put a lien on your property. In this case, YES you can lose your property! If they audit you and make the determination that they need the lien to prevent you from sneaking off from paying them, they can do so. So move your butt and file before you lose your house!

Answer 5

It will stay on your credit report for 7 years.

I would try doing the right thing, talking to your creditors, and perhaps trying a consumer credit counseling firm.

Good luck, and hang in there.

Answer 6

eventually it will be written off, and it will take around 7 years to come off your credit rating, from what i understand

Answer 7

hi there! Well, have a cup of coffee, sit down, take a deep breath and get stuck into these:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
if you get any luck please don't forget about me lol, hope it helped you!

Answer 8

contact me and i can explain throughly for you.