Re: What are the consequences if I forget about my debts

Posted by CardReport.Com Webmaster on October 17, 2000 at 04:00:47:

In Reply to: What are the consequences if I forget about my debts posted by Rony on October 17, 2000 at 03:55:49:

This can depend greatly on the amount of debts.

While the lack of significant assets can reduce the
chances of a lawsuit, it does *not* eliminate the
possibility. And if they do get a judgement, they
have a very long period of time in which to enforce
it (20 years in some states.) Waiting until the
SOL expires will only work is they *don't* sue you
within that time.

You "can" do whatever you want, but there *will*
be seriously negative consequences if you do anything
except pay the debts on time.

The accounts will become charge-offs, and, especialy
with large amounts, this will *severely* impair
your ability to get credit for the next seven
long years.

If any one account is more than a few thousand
dollars, there is a real risk of a lawsuit, even
if you don't have much to take at the moment. You
are definitely taking a gamble if you just assume
that they won't do this.

If the amount is large, and they find out that you
lied on the applications, the issue of criminal
fraud could be raised, with possible *permanent*
warnings on your credit reports.

Problems do *not* just magically go away because
of being ignored. I've seen people literally
living on the street because they refused to
understand this concept.

For some related reading, check out our Credit Laws
section, (for the statute of limitations), and the
Credit Problems section for more general info.

Good Luck.

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