What happens if you just don't pay your credit cards and don't declare banruptsy..besides ruin your credit..what can they do to you?
2007-01-27 14:43:27 · 9 answers · asked by corporatetrade 2 in Business & Finance ➔ Credit
My friend has 150K in CC debt.. Lost his job..Can't pay his debt and living expences. He just walked away and is waiting for the end.. He has about 25K in cash that he is saving to live on and about 75K equity in a coop.
2007-01-27 14:52:21 · update #1
Also - Chooses not to declare bankruptsy
2007-01-27 14:53:50 · update #2
They can garnish your wages, and put liens on what you own. I used to be a bill collector, it's a dirty job but someone has to collect the money. If you quit your job they will wait until you havea new one and find you. They are brut al. Your best bet is to make some sort of payment arrangement.
2007-01-27 14:53:40 · answer #1 · answered by Anonymous · 3⤊ 0⤋
I have to believe bankruptcy is not an option currently because in order to file bankruptcy, you have to make less than the state's median income. If he just lost his job, it sounds like he is a year away if he wanted to go that route which you say he does not.
As the others said, they can sue you and try to attach assets. Creditors are becoming more aggressive with the changes in the bankruptcy code because they know it is harder to avoid your debt by going that route. Thus, they are securing the debts via legal judgments and , in many cases, tacking on 29% interest annually.
This brings me to my suggestion of settling the debts out for about 50 cents on the dollar if and when they are delinquent.
2007-01-28 11:41:15 · answer #2 · answered by CALIFORNIA GOLD 3 · 1⤊ 0⤋
Check at http://www.creditinfocenter.com/rebuild/statuteLimitationsJudgements.shtml to see when the statutes of limitations for your state expire. A statute of limitation is the time period from the last payment that was made on an account and it varies for different states. If they've already expired then the creditors can't do anything to you. If they haven't expired then the creditors can sue you for the amount of the debt owed, seize your assets, make a judgment against you, and garnish your wages and bank accounts.
http://www.debtzine.com/blog/51.htm
http://en.wikipedia.org/wiki/Statutes_of_limitations
http://www.creditfixers.org/statue-of-limitations.html
THE FAIR DEBT COLLECTION PRACTICES ACT
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
I hope this helps. Good luck!!
2007-01-27 15:15:55 · answer #3 · answered by ~*Tweety Gurl*~ 6 · 0⤊ 0⤋
Bankruptcy will cost him a lot less than the creditors stalking him for the next 7 years, garnishing wages and taking anything he owns.
He might be able to keep the coop if he declares because you usually keep 1 residence.
2007-01-27 15:01:10 · answer #4 · answered by kate 7 · 3⤊ 0⤋
How to Avoid Bankruptcy Explained
With the rising consumerism, aggressive advertising campaigns and increasing incomes, people are living well beyond their means. As a result, they are burdened with heavy debts. If they are unable to repay the dues, they have to file bankruptcy. Bankruptcy is the last resort when you are reeling under financial problems
2007-01-28 16:59:20 · answer #5 · answered by mar c 2 · 1⤊ 0⤋
Just pay your debt, because they will get their money. Please don't count on the government to bail you out of your "bankruptsy" because you got yourself into debt, now take care of yourself...GOOD LUCK.
PS- your friend should talk to the creditors, usually they will try to work something out.
2007-01-27 14:54:12 · answer #6 · answered by HAGAR!!! 6 · 0⤊ 2⤋
They can sue you, get a judgment against you, garnish your wages, seize your assets. attach your bank accounts. Is that enough?
2007-01-27 14:56:32 · answer #7 · answered by Anonymous · 2⤊ 0⤋
They can sue you and force you to pay your debt.
2007-01-27 14:46:31 · answer #8 · answered by Mimi 6 · 3⤊ 0⤋
You can be sued , of course ..
2007-01-27 14:46:55 · answer #9 · answered by Anonymous · 3⤊ 0⤋