What happens if someone has no money to pay back to credit card company?

Question

Do they come to your house and take your stuff and arrest you or something?

If they come to take the stuff, why won't someone just gift out all the stuff he has, and get it back later on. Excluding houses, cars.

Answer 1

it happens like this:

they will send you letters
they will call you
at home, at work and any other contact number thy have from you
they will send you certified mail
they will send you to collections
after that, you will get served court papers
usually you then have an option- call the collection agency and work out a payment plan (do it right away tho) or you hve to go to court

IF you dont have the money:
first- they will look at all your bank account/funds and possibly garcish your bank account
second- if you have a job- they can garnish your wages- there is a formula they use to figure this out, but if you make what they consider "enough" they can garnish like 25 percent or sumthing like that
third, they can seize your posessions that are worth money like car, computer, tv, furniture, etc
in the end.. they could arrest you but im not sure if they would or not....

what happend to me was everything up to getting served papers.. then i jsut set up a payment plan... the credit card company wanted like 200 a month or nothing basically but when it went to collections they originally wanted at least 100 but becuase i called them to acnoledge my debt and told them my financial situation they agreed on 60 a month, but if i ever pay late or miss a payment it automaticlaly goes back to court and i have no say in the matter basically

also, if you think about filing bankrupcy and dont have money to pay a credit card then youre stuck between a rock and hard place... there are fairly new bankruspy laws wich from what the lawyer told me is you first have to prove you dont have money- they basically pick through every part of you life, you have to takea "class" on bankrupcy" (wich costs money) then you have to have someone elvaluate your specific problem to even determine if you are eligable(more money) then you have to go to court for it and have a laywyer also ( more money) and then take another class about keeping from getting into the problem again.... from what he told me it cant even be considered for less than about 1000 dollars... and then you dont know if you will be "approved".... so unless your debt is in the high thousands it wouldnt relaly be worth it.... i had 3000 in c.c. debt and it would cost at least half that if not more to file for bankrupcy, not to mention that would be worse on my credit report

Answer 2

When you sign up for a credit card, and you sign that application, you are signing a legally binding document. Basically, you enter into a contract to pay everything you charge, and pay in accordance with their fee schedules and interest rate charges. If you cannot pay anymore, the solution is NOT to stop paying. They will report you to the credit bureaus. Once your credit is blemished, it takes a near miracle to fix it...or 7-10 years AFTER the balance is paid to repair it. Nowadays you can't get cell phones, car insurance and even some jobs without having good credit. My suggestion is to call the credit card companies, tell them your situation. They may offer you a "settlement" or a "charge off". For them, some money is better than no money. If they really wanted to, they could take you to court for the goods you purchased and didn't pay for. I only know all of this because I ruined my credit when I was 18, I am 26 now, haven't been late on a bill since I was 18 and still have terrible credit. Be careful, and good luck

Answer 3

Credit cards are unsecured which means you owe them the money, no they cannot take your things, no they cannot have you arrested. What they can do is call you, constantly asking for payment. They can go to court and get a judgment on you but unless you are talking about thousands most likely that will not happen. No they cannot garnish you wages except in extreme cases. Most statute of limitations are 4-6 years (check your state) after that if they file for a judgment all you have to do is show up and show the SOL has expired, and you will win the judgment . The collection agency's can still bother you but all you have to say is the SOL has expired. NO they cannot then re report it on your credit score, unless you make a payment, then the 7 years start again. Best is if the SOL is past, dispute the debt, then they will have to prove that it is indeed correct, most will not since it cost them money that they cannot legally collect.

Answer 4

If you really don't have the money, no job, on unemployment, disability, have no income from a moderate to high paying job, all they can do is write you off as an insurance loss, their gain. Your credit will be ruined temporarily. Best way out is to file Bankruptcy Chapter 7. This way when you do get on your feet again, no one can garnish your wages or take anything from you. Plus in this spiraling downward economy you'll be able to re-establish credit easily in the future. Unlike some narrow minded people I know lots of people who fall into bankruptcy as a means of survival after natural disaters, losing their homes, friends, family members, or due to castatrophic longterm illnesses like cancer, aids, etc. where the medical cost are staggering unless you have or make a few million a year and live in a dirt cheap city.

Answer 5

Relax, no they won't come to your house to arrest you.
Yes, they will eventually seek to garnish wages, summons you to court, hound you down, so........
Start making provisions to get this debt under control. I have seen many disasters in 12 years of working in mortgages financing. You don't want a seed of a problem to grow into a Forrest of issues. Are you currently employed, examine your debt ratio and make efforts now to pay this card off. Credit cards can put you in years of debt if you don't more than the minimum.
Paying the minimum is just paying on the interest, you are not touching the principal. [e-mail] on-line consult with people regarding these issues, and would like to further advice if you need.

Good Luck !!!!
This is fixable, it is going to be fine, smile

Answer 6

They contact you and try to set up arrangment with you to settle. you agree to pay so much a month until is reslove, they will put it on the credit report it is resolved. They tracked me down and threatened to take me to court and put a warrant out on me. All threats I know now, but at the time I thought they could that. But they could not. Do not run from it, they will find you like they did me. Ask them if they would work with you to pay what you can, you will not proabably be able to use the card anymore.If the bills keep coming each month the late fees and rates, all will bring the monthly bill up, talk to them about a settlement you can do with them.
remember they will try to get the money, any way is better than none.

Answer 7

They don't usually "come take the stuff". However if they think you have no intention of paying, depending on how much you owe them, they can levy your accounts and collect the money that way, or attach your wages, or lein your property. If you are just having trouble, they will work with you as to payment arrangements. Most companies would rather get their money eventually rather than never.

Answer 8

No, they destroy your credit and hound you with collection calls and letters. IF the amount is pretty high, they will sue you and get a judgement against you, then they will try to have your wages garnished.

PAY YOUR DEBT. If you have to, get a second job.

In the future, don't buy what you can't afford. Credit is a great tool, but it is not a way to buy things you can't afford and hope that you'll somehow be able to make the payments.

Answer 9

answer depend on country to courty, in our country there is noting happen against you, you just wait for 3 months after all they will claim through insurance and will black list you in CIB system, that mean you will not be able to get in credit and debit facilities through any financial institution that is linked with state bank.

Answer 10

They may repossess whatever products you have purchased from them. Still, they will inform the credit bureau that you are a "bad risk" and that you won't pay your bills. I have never heard of an arrest being made UNLESS a "fraud" has been committed. Peace, Love and God Bless.