In January we had excessive vet bills (15K) for our puppy and eventually had to put him to sleep. We fell behind on our credit card paymens and havent made a payment in over 6months. My wfie is due for our first child in May, and I don't know what to do. All the credit card companies must have sold our debt becasue now we just get collection notices. Does anyone think there is a chance they won't sue if we don't pay. we have about nine cards for a combined 90k in debt. How long til the collection companies sue, and do they always sue?
2007-11-03 06:20:30 · 8 answers · asked by dlynk196 1 in Business & Finance ➔ Credit
They will get judgments if you don't pay them and then will garnish 25% of you pay in this state.
2007-11-03 06:28:34 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
Repairing your credit history is an involved process that I can't explain here, but I did it myself and successfully challenged my credit reports.
I would consider debt consolidation and counseling now. If a charge off is a -9 a collection is a -7 then a counseling and cosolidation is a -5! A much better option!
Look, go to the website below and read it all and even get the RSS feed too since it's constantly adding and updating info, links and services! I used them and got my score from 485 to 729 in a little over a year and I had to consolidate too.
Consolidating is not great on your record, but it's better than a default so don't wait. you might want to enroll in a credit monitoring service too so you can see exactly waht your lenders and collection agencies are looking at!
Trying to solve these problems without one is like flying blind, crashing into something you cannot even see hurts a lot worse!
2007-11-03 08:35:09 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Every creditor is different so it's impossible to tell what will happen. Because of the debt level involved I would assume that at least one will sue.
One option, you can always attempt a settlement. Six months behind is really far behind....but the good news is that it may put you in a position to negotiate a really significant settlement...i.e. 30% of the original debt. Many creditors may be open to such a settlement as opposed to loosing everything if you file for BK.
Important notes about settlements:
* Get all terms IN WRITING PRIOR to giving them one penny, DO NOT make any settlement agreements over the phone without written proof
* I strongly advise against paying collection agencies with electronic checks...which involves giving them your bank transit and checking account #'s. If they have this information there's nothing to stop them from raiding your checking account. I recommend paying only with USPS money orders
*****Important** "Settling" debt may increase your next year's tax bill. The IRS considers settled/forgiven debt as earned income....So if you have $45,000 of this debt amount forgiven in a settlement, you're going to have to add $45,000 to next years adjusted gross income and pay taxes on that.
Final: This situation sounds too serious for just relying on free advise on the internet. I'd recommend meeting with a certified financial planner. Do not make any rash decisions.
2007-11-03 08:24:41 · answer #3 · answered by CatDad 7 · 0⤊ 0⤋
You can bet on it. For 90 k you need protection. The good news is they can't put you in jail or take your child. You need a bk. I did it twice, and now I'm 8 years out, and I have excellent credit.
Call an attorney on Monday.
2007-11-03 06:27:20 · answer #4 · answered by Steveo 5 · 0⤊ 0⤋
Unfortunatly they will try and collect these accounts. Some may be willing to negotiate others may want to sue.
I have included links for free advice on how to get help.
http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
Govt approved credit counseling agencies.
http://www.ftc.gov/gettingcredit/
What you need to know about your credit.
2007-11-03 06:30:03 · answer #5 · answered by Sgt Big Red 7 · 0⤊ 0⤋
You need to contact them and find a way to work this out NOW. Your credit scores have TANKED and the balances on what you owe grow daily. Suck it up and dig your way out.
2007-11-03 07:59:26 · answer #6 · answered by magy 6 · 0⤊ 0⤋
For $90,000, your only option is chapter 7. If you go that route, and the courts approves it, you can always pay later after you get back on your feet.
2007-11-03 18:56:23 · answer #7 · answered by Anonymous · 0⤊ 1⤋
you need to divorce your bigot of a spouse. She ought to be in reformatory for strangling Bob. i will part with a gay son as a replace of a b***h who's legaly culpable for tried homicide.
2016-12-30 16:35:05 · answer #8 · answered by ? 4 · 0⤊ 0⤋