What happens if unable to pay? IRS gets involved?
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Posted by Pumpkin
(209.178.147.31) on December 22, 2003 at 18:28:15:
Hello,
I am in Los Angeles, Ca. I've been unable to pay on my credit cards since 5/03. I was able to work out payment arrangements with 2 of 5 of the creditors which will get the accounts back on track. However, 3 of the accounts (all with Capitol One) I am unable to start paying on for another month. They are in collections with a 3rd party company. The person I spoke to on the phone about the accounts told me they would not drop my interest rate or work out arrangements and that the minimum balance on each account is due and failure to pay the minimum amount due on one of the cards ($129.00) by the end of the month will result in the account being sent to the IRS. They went on to say that I will be audited and sent a bill by the IRS around tax time. The total debt comes up to about $2,000.00 for all three cards. Late fees and over the limit fees are continuing to add up. Any suggestions as to how to handle this situation? As of the first of the year I will be able to send perhaps $50.00 on each card every month. If I could get the accounts back on track I'll be okay with the minimum balance due. Also, what is this about the IRS? Do they try to collect on behalf of the credit card company?
Thanks in advance.
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