Re: Here's what you can expect ...
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Posted by Judgmental
(24.19.3.33) on January 29, 2004 at 08:17:55:
In Reply to: NO MORAL LESSONS PLEASE!!!!!!!!!!!!!!!!!!!! posted by LOST MY GRIP!!!!!!!!!!!!!!!!!!!!!!!!! on January 29, 2004 at 06:19:17:
If you go beyond 90 past due, you will most likely end up in assigned collections. The CC will continue to add fees and interest on any balance. You will get phone calls, letters, etc. There may be a lull in contact at this point. Once you go beyond 180 days past due, the CC will charge-off and sell your account to a debt buyer or collection agency. The CC itself will no longer add fees, because they will no longer own the debt, but the CA may add some fees to your account. You will start to receive letters and calls again from whoever has acquired your account. Of course, the debt will appear on your credit report as a charge-off from the original creditor and also as a collection account with the collection agency. If your account changes hands more than once, you might have two or more collection records on your credit report for this SINGLE account in addition to the charge-off from the original creditor. You will also have several inquiries on your credit report from different collection agencies. Some of the inquiries will not be from collection agencies that are actually reporting on your CR. Some of the inquiries will be from collection agencies that were simply "shopping", ie trying to ascertain whether they should buy your charged-off account. At this point, your credit will be severely damaged, but this isn't the worst thing that can happen. If things go really badly, then the CC won't do any of this, they may simply sue you. The debt ($10K) may be large enough to make it worth their while. If they sue you and you don't have a defense for the amount due, you will most likely lose the suit and end up with a judgment on your CR. After the judgment, depending on your state's laws, you can end up with frozen/levied/seized/drained bank accounts, garnished wages, etc. Possible Next Steps In My Opinion
Unless you plan to file for bankruptcy, I think that you should do whatever is necessary to avoid being sued for this debt and keep the debt in the hands of the OC. Judgments have a longer SOL for collection than regular debts and judgments are renewable in some cases. Do not let this become a judgment. If you have to take in a border and rent a room in your house, sell kisses at the fair or take a 5th job, do it. If I were you, I would try to get on a hardship program with the CC company. Tell them what you've told us here. If they don't listen, tell them again. Keep writing until you get someone to listen to you. Keep a record of your attempts to get on a payment plan. It may not be enough to stop the judgment, but that in addition to something else the creditor may screw up in the process could be useful for you later. It's unfortunate, but the truth of the matter is, if the fact the you owe the debt is not in question and you have no mitigating factors as to the validity of the debt, there's not a lot you can do if they choose a hardline with you.
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