i can't pay my credit cards how long can it take for them pursue me ?

Question

I was working and was paying my credit cards on time then i feel to an illness of spinal and neck surgery i'm unable to work and no living on disablity, what will happen to me and the credit card company since i can't pay them any more the credit card are low most are about 300.00 in total limits should i cancel the cards since i cannot pay it and if i do will they sue me??

Answer 1

Cancel the cards and make some kind of arrangement to pay off the debt. I'm sure they will be willing to work out some type of payment plan for you.
Another solution is BK. Hope this helped.

Answer 2

If you don't pay your credit card bills, the credit card issuer will start calling you if your payment is late by 30 days or more. If your account is over 90 days past due, they will usually turn the account over to a collection agency. The collection agency will generally be more aggressive than the original creditor was. However, if your credit limit/account balances are low, it is extremely unlikely they will file suit or garnish wages. If you don't want the collection agency calling you, you can send them a certified letter telling them to stop calling you per the Fair Debt Collections Practices Act, and they can't call you any more.

Later, if you get working again or have an increased income, and you want to pay the debt, try to get the collection agency/creditor to remove the negative information from your credit report in exchange for a settlement. Make sure to get this in writing. Having "Paid Collections" or a paid off account with several late payments on your report will not help your credit score.

If you choose to not pay the creditors at all or cannot pay them, the negative information will be on your credit report will be there up to 7 years from the first time you missed a payment. It will be very difficult for you to get a credit card or finance a car/home during that time. Make sure you set aside money each pay period so you can handle unexpected expenses. Good Luck!

Answer 3

I agree w/ everyone else...call the companies and explain your situation. If your payment record is excellent...all payments have been on time and you never went over the limit, then ask haggle about the interest rate. If no one will, try transferring your cards to a new no or low interest rate card. (companies will use any excuse to not lower interest rates and being late on one payment can and will be used as an excuse)

As for sueing you, yes, you can get sued and your wages can get garnished. I know, becuase I'm going thru that right now. Luckily I do not make enough for my wages to be garnished (the min you can make is 151.30 ... the amount garnished cannot make your pay drop below that)

Statute of limitations varies state by state. In NY it's at least 6 years. AFter XX years of NO CONTACT what-so-ever, NO ONE can touch you for money owed.

For joloinaz about Bankruptcy...yes, you can file for bankruptcy for Credit Cards. It's Chapter 7. You cannot make more than 50,000 for a famly of 3 in NYS. I am filing bankruptcy after I get my tax return back. (you're allowed $2500 cash if you are filing bankruptcy and it costs about that much now) Once you file bankruptcy, an "automatic stay" is put into place, and NO ONE can call you, write you or contact you, or garnish your wages. It's ILLEGAL.

If creditors are calling your job, your boss has a right to tell the creditor to stop calling, as they are jeopardizing your job. Also, they are NOT allowed to call your neighbours to find info about you.

I don't think you are that far under w/ your bills, but just wanted to give you some info.

Call the card companies and explain your situation. I'm sure something can be worked out. Good Luck.

Answer 4

As the others mentioned, you have to make contact with them and explain your situation. If you have a well documented file about your financial hardship, the credit card company will be less pushy. Do you have a relative or friend that can help you out at this time that could look after this for you? This would at least keep your credit rating good. Also, some credit cards have an insurance that you may of signed on for and are just not aware of. It would work for your situation right now if you had. Just give them a call. They will respect your integrity and honesty.

Answer 5

Don't stress over this, it's not that big of a deal! Call customer service at each card company, or better, send a letter explaining your situation and set up a payment schedule.Offer them monthly payments of whatever you can afford, no matter how small the amount. If you have a high interest rate ask them to lower the rate to the minimum to help you make the payments.
You might be surprised at how helpful these folks can be if you will communicate with them. Just be sure to take your time, don't get nervous, and just explain your medical situation.
$300.00 is not that big of a deal and they will work with you.

Answer 6

Since it's just a small amount, I think you can talk to them and work out a deal, or you can talk to one of those free credit counselors, and they can negotiate with the credit card company to reduce your bill. I think most credit company will take a 50% or more loss if they can get their money. It's better for them to get some money rather than get nothing. I don't think you'll get sued because it's not worth the trouble to go after such a small amount of money. They can however screw up your credit score.

It's tougher now to file for bankruptcy. You can thank Bush for that.

Credit card companies can only call you once a day, and if they call you more than once a day, it's harassment. In which case, you can file a complaint against them, and possibly take some kind of action.

If the credit card company keeps harassing you, such as calling you, what you can do is write them a letter stating that you can't pay your bills, you're going to file for bankruptcy, and they need to stop calling you. After they get the letter, they can't call you anymore, and if they did, it's considered harassment, and you can take legal action against them. I think you can probably sue them for causing distress.

Answer 7

Sorry to hear your mishap. You should describe your situation to the credit card company and they will work something out with you.

If you simply destroy the card and ignore them, this is what they can do. They will put you in default, which will damage your credit history. They may sell your debt to another company, who will hire a collection company. Since there's no status of limitation I'm aware of, they can pursue you till you bankrupt. Collection companies are experts in causing you the maximum pain allowed by the laws.

Since your credit is still in good standing, I'd negotiate with the credit card company if I were you. Chances are you'll get a much better option than bankruptcy.

Answer 8

If you do nothing and don't send any payment usually by the second month they will turn you over to collections and then pursue your assets for payment. Yes they can sue you in a court, for payment. Try to contact and explain your situation and see what they can work out with you. And by the way with the new laws you can't file bankruptcy on credit cards anymore. This happened to me, I fell ill with incurable illness, and had to file bankruptcy mostly on medical bills and I guess if I had to go through it I was lucky enough to still be able to file on credit cards, etc. Making contact and explaining your situation is a mature approach and at least you can say you tried all you could to work out something in this the worst of times for you. Hang in there, this to shall pass.

Answer 9

With credit cards. If you read the letter that came with the card or call them. You should have some form of insurance on the balance and since you can no longer work. That balance will be zeroed out.

Answer 10

See them and discuss. $300.00 is not a lot. You may be surprised if your story is true! Good Luck.