What happens if you stop paying your credit card bills?

[Orrex]

Seriously.

What can they do to you, aside from messing up your credit?

I'm not recommending it as a sound economic decision, but I've been wondering just how much direct power these abominations wield over the average, inescapably financially-crippled consumer.

[1gobluedem]

1. They can screw up your credit for years

Plus make your life a living hell with collection calls. It's not worth it; instead contact them and work out payment arrangements you can handle.

[Orrex]

2. Well, like I said, I'm not recommending it

My other (and perhaps more realistic) plan was to steer the Earth into a burst of gamma rays, thereby wiping out the credit card companies' records...

[Ravenseye]

65. go watch Fight Club again

that should give you some ideas on how to deal with the companies.

[Orrex]

69. Heh. See reply #11 (nt)

[MrCoffee]

3. well, they closed all the debtor's prisons, but they'll still sue you

and the laws are pretty good in their favor.

[Orrex]

Again, I'm not recommending it

But what can they get? It's an unsecured loan, after all.

If the assets purchased with the card no longer exist (such as a ton of expensive meals, or a wedding, or whatever), then what can they seize? They can put a lien on your home, but what if you don't sell it?

[MrCoffee]

7. yes it's an unsecured loan, but that won't stop them from...

enforcing the judgment they get against you in court. that's wage garnishment, foreclosure, reposession...all the fun stuff.

the unsecured part only affects what happens if you file bankruptcy. it determines who has priority over your assets. once they get the judgment, you're toast.

[Orrex]

11. Jeez--I'm starting to dislike Fight Club less and less

What I thought to be a trite postmodernist take on identity seems increasingly like a viable fiscal undertaking...

[PassingFair]

52. I think under the new bankruptcy laws...

that "unsecured" debt became "secured".

Better check with an attorney.

[China_cat]

67. They can actually go in and clean out your bank account

without even bothering to tell you they're doing it. They can garnish your wages.

[Lisa0825]

92. Depends on the state laws.

In Texas, I think garnishment is only for guaranteed student loans in default and taxes. Other creditors CANNOT garnish. They can sue and try to get a judgement or lien, but they cannot garnish.

[anarch]

6. I'm actually kind of surprised they haven't re-opened the debtor's prisons

But I guess they'd probably have to release all the prisoners of the war on drugs to make room, so that'll never happen.

[MrCoffee]

9. they have reopened, they're called "minimum wage jobs"

[anarch]

12. yeah, but you didn't used to have to pay rent at the debtor's prison

that was the whole point...nowadays you still have to pay your rent, and your debt. Shit, a lot of people would probably be better off if they did re-open them....

[MrCoffee]

17. hell yes they would.

I'm not advocating debtor's prison by any stretch of the imagination, but at least there was a foreseeable light at the end of the tunnel.

[datasuspect]

60. they were called workhouses

you pretty much were stuck there.

[sarge43]

31. As a matter of fact, some of them required the inmates pay for their food

and any 'extras' like blankets, bed linen, etc.

[Critters2]

18. In Illinois, several hospitals were ordered to stop using

"body attachments" against debtors. "What's a body attachment?", you ask. They were getting the local police to arrest debtors. Honest! Then they'd be dragged to court, and sued. Of course, these were all people with no insurance and little income. And the hospital chain that did it most was a Catholic "non-profit" group. One of their hospitals lost its tax exempt status for pulling shit like this...the state ruled it was acting as a for-profit entity.

But, as far as I know, credit card companies don't pull this shit. I suppose they could, but they don't. Hospitals do.

[anarch]

4. basically, you become an un-person

Once you stop paying them, either through willful neglect or by unavoidable economic circumstance, you are cast into a surreal world of not-quite-life-as-we-know-it, wherein you are treated with a combination of distrust and spite by everyone you meet, and you can never buy a house, open a bank account, get any but the lowest paying or most back-breaking job, or even get a membership at Blockbuster until you account for yourself and apply for abasement before our corporate masters.

[Orrex]

5. Whew! Is that all?

Maybe once I'm off the grid I'll become an untrackable international crimefighter.

[anarch]

8. well, that and a law-suit

but if you get far enough off the grid I guess you're ok. Just better get used to hunting and gathering....

[Debi]

15. Don't forget higher health insurance, car insurance and homeowners

insurance rates. x(

[SOteric]

41. And in some cases, will cause

potential employers not to hire you, and current employers to fail to promote you or give you plum assignments. A friend of my brother's couldn't get the company they worked for to insure him for anything less than an astronomical rate as a driver on their fleet vehicles. (Company truck). The truck was a necessary part of most of the plum work assignments so that kept him from tasty jobs and offered little opportunity for advancement.

[Debi]

47. Yep - just kills ya! n/t

[datasuspect]

61. what if you have a county welfare card for medical

no car and are so far on the margins that homelessness is the next step?

[datasuspect]

56. "lowest paying or most back-breaking job"

not even true

you might be excluded from working at a bank or getting a security clearance or working as a cop.

[bearfan454]

95. That's not exactly right

I was worried about a car loan several years back because I had some credit card charge offs. The loan went right through at 6 percent. If they don't approve your loan, then they don't get any money and the salesman doesn't get his/her commission.

[Deep13]

10. Bug the debtor for a long time, then sue him or her and...

...ultimately attach his assets or garnish his wages.

[Debi]

13. Joe Biden doesn't get reelected?

:shrug:

[Bunny]

14. I see you live in PA. I am not a lawyer, but my understanding of

PA law is that your wages can only be garnished for back taxes, child support, and student loans. So if you default on unsecured credit cards, they can get a judgment against you if they want, but they really can't do much to enforce it because they can't attach your wages for that type of debt.

However, as I said, IANAL, and things may have changed drastically with the new bankruptcy laws. Better check with a real attorney.

[Orrex]

16. Just for that...

I won't post the requisite Brazilians joke that usually appears in my replies to you.


Again--I'm not recommending it as a course of action, nor even considering doing it, but I was curious...

[Bunny]

19. Thanks. I am against the death penalty, but I could be persuaded

to send the next Brazilian joke offender to the chair.

[Orrex]

20. Clearly you protest too much

But I'll let it slide this time.

:evilgrin:

[Rabrrrrrr]

21. Here's how the process goes:

They send you letters for a while asking you to pay while they continue to send you your bills and tacking "no payment" fees on the amount you owe, and your percentage rate will skyrocket to the 30% or so range. After a while, they submit it to a collection agency who will send many a letter and make many a phone call to you. Assuming you continue to ignore the collection agency, the credit card company will eventually start sending letters (in a year or two) asking you to settle for half of the amount you owe, and then they might even go down to settling at 1/4 of the amount.

But you really have to wait them out; and, of course, your credit rating will be fucked.

(and no, I don't know this by personal experience, but through a friend of mine who went through it)

[W_HAMILTON]

32. That's pretty much what I've seen to

I know a lot of people are preaching gloom and doom, and for some, maybe they do to go those stretches. But I know someone in similar financial trouble, and the worst they did was just bug her and harass her a lot.

I wonder if there is a way for people like that (that run up maybe tens of thousands of dollars in debts, then just stop paying completely) to re-establish credit somehow? Or, when you do that, you're screwed for life?

[Lisa0825]

35. Not for life.... 7 years, tops. (other than bankruptcy)

In most states the Staute of Limitations for debts is 4 years, longer in some. There is no SOL on some debts, like guaranteed student loans. Anyway, after the SOL is past, you have the bargaining power, because they CANNOT win a judgement against you. So you can negotiate on a pay-for-delete for the bad trade lines on your report. No delete, no money. If you don't even want to try to settle, just wait until 7 years goes by from the DOLA (date of last activity) on the account. That is how long most items stay on your credit report, and as they disappear, your score will improve.

Plus, the older they get, the less they matter, even if they are still on your report. So, lets say you had 4 accounts that got charged off 4 years ago, and now you just got a "starter card" to try to rebuild your credit, and you make faithful timely payments for a year. Then you get a second credit line or a mortgage, and you keep up the good habits. Those two recent accounts will carry more weight than the older ones in the special secret algorithm that FICO uses, so your score will begin to improve.

I couldn't recommend this site enough.... www.creditinfocenter.com

[W_HAMILTON]

36. Ahh, ok

I'll tell the other person about that. I think she has been basically ignoring them for the last few years, so I'm sure the statute of limitations should be in effect soon (I've heard a little about it on the Suze Orman show). Even though I know that debt would eventually be unable to be collected on after a certain amount of time, I always assumed that if you did take that route, you basically would never ever get credit again, which meant that you could really never build your credit back.

[Hangingon]

55. What about the estate?

I have an unemployed artist friend living on social security. He has some collectibles, books and guns - not much value. His credit card debt goes back several years and has been thru all the harrassment. It appears his debt has been sold several times. Recently, he asked me to become the executor of his estate (?) and to place the stuff with museums. I assumed the first thing collection agencies do in the morning is read obits. I don't think a reputable museum will take a gift unless it is properly probated. When you probate, won't the collection agencies take everything?

[Orrex]

78. Can he incorporate?

The corporation's assets are considered separate from those of the corporation's owners, and vice versa.

Maybe he could establish Unemployed Artist Inc. and sell his personal assets to the corporation.

Not sure if that's entirely legal, and I'm not a lawyer by any means, but I've seen a number of ways that corporations--even small ones--can fiddle with the numbers...

[Rabrrrrrr]

83. I'm no lawyer, but I would assume (and note that word) that since

credit cards are unsecured (that is, not collateralized), they can't go after any capital of a card holder, whether physical objects or even cash - that is, they can't garnish, lien, or anything to get their money. All they can do is eat the debt and write it off as a loss.

[bearfan454]

96. You are exactly right Rabrrrrrr

That's what I've seen happen.

[MissMillie]

22. I stopped paying mine 2 weeks ago

Of course, that was because I paid them all off... yep--I'm debt-free!

[Orrex]

23. Well, now I have to hate you

But it's a pure, envy-driven hate, if that counts for anything.

:applause: Congratulations on your financial independence! :applause:

[MissMillie]

25. don't hate me because I'm beautiful....

yeah, I hate me too. I'm only debt-free because my son inherited a shit-load of money, and he gave me the few thousand I needed to pay it all off.

[Orrex]

26. Can I borrow your son?

It would only be for a tiny fraction of a shit-load, I promise!

[catmandu57]

24. They can't shave your head and send you to Iraq

It's creditorial suicide, but if you live off the grid and by cash, and only buy what you need by cash then tell them to fuck off.
I have fun with the collectors who call me, what drives them batshit fucking nutz is silence. if you really want to piss them off lay the phone down and go turn the music up.
There is nothing physically they can do to you, they can't reach through the phone and beat you bodily about the head and shoulders, so if you can live without new cars, house, bank loans, tell them where to get off.

[celtdem]

93. And the military doesn't want people with debt and bad credit

They say it's distracting and adds extra pressure. So, should they institute a draft, those with bad credit will drop to the bottom of the list.

[kskiska]

94. I've had one that left a message on my machine

after futile attempts to contact me (caller I.D.).

Message: F**k you!!!

I'd never spoken to this person in my life.

[Orrex]

27. In the wake of this discussion...

Can anyone recommend a trustworthy debt consolidation service? I've concluded that the best route out of my many conflagrations is to combine them and attack that single debt, rather than trying to put a dozen fires individually.

Suggestions?

[Lisa0825]

34. Be VERY careful with services like those....

Many are scams and will give you even worse credit. Check www.creditinfocenter.com . Lots of free info and great discussion forums.

[Bunny]

37. Consumer Credit Counseling Service is the only one that is

reputable, so I understand. I wouldn't even talk to any of those others. Here's a link to the Western PA office:

http://www.cccspa.org/

[Lisa0825]

44. It STILL makes your credit WORSE.

All your debts will end up on your credit report as "settled for less than full amount" or similar items. CCCS is NOT in the business of repairing credit. They are in the buiness of getting your debts settled, and debt-settlement alone MAKES YOUR CREDIT WORSE. If debt settlement is what someone needs, and they don't give a crap about their credit score, by all means use them, but I am telling you, it does HURT your credit, NOT help.

I can't even tell you how many times I have shared that info with people, both here, and on other boards, and they usually come back and say they heard otherwise. But it is the truth.

YOU can do better on your own than CCCS does, because BEFORE you pay the money, that debt is your bargaining chip! Once it is settled, you have NO leverage, and little chance of getting the black mark off your report until the 7 long years have gone by.


CCCS pisses me off as much as the shady companies because the people I have known who went through CCCS did NOT feel they were told enough about what the process would do to their credit rating. they thought it would help them.

[MissMillie]

54. That was not my experience

Under credit counseling, my credit was not stellar, but it wasn't any worse than it was when I was always late with payments (and I was always late because I didn't have the money to pay). Even while still with the credit counseling service, I was qualified for a mortgage.

The service negotiated a low interest rate (Sears doesn't play, but all the other did--at least until the Bankruptcy law passed) and made my payments low enough to tolerate. I cleared $17K of debt in just over 4 years (which was earlier than contracted through the service) and over the next couple of months as my creditors report that debt paid, I'm expecting to see a huge jump in my rating.

(Of course since the bankruptcy law... my experience may not be what people can expect now.)

[LSK]

42. start watching the Suze Orman show on CNBC on Sat nights

Most of her show is dedicated to financial crisis and debt management.

[RumpusCat]

28. My best friend has been avoiding hers for awhile now

They try really hard to find you and will call and bug your relatives. She moved and changed her phone # and her parents refuse to tell the collection agencies where she is, so they're kind of screwed in what they can do to her. As long as she can stay off of their radar she's pretty scott-free, if you don't count the fact that she'll probably never be able to buy anything without all cash upfront or hold a non-craptacular job.

I wouldn't recommend it but it's not like they can hunt you down and break your knees or anything. :shrug:

[W_HAMILTON]

29. What is this about being forced to accept "crap-tacular" jobs?

Why would not paying your credit bills keep you from getting a good job? Or are people just being sarcastic?

[Orrex]

30. Many jobs perform credit checks to see if you're hire-worthy

If you don't score above a certain threshold, you're deemed high-risk, and they may pass you over for someone else.

The problem, aside from guaranteeing an ever-accelerating downward spiral for the unlucky applicant, is that it doesn't take into account the cause of that poor credit rating. It's all equal, whether you ran up your debt becuase of medical bills or because you had went nuts and bought three SUV's on your Visa card.

[NMDemDist2]

64. where can I find more info on this? i'm half way through a Chap. 13

and job hunting


am I screwed for life or what?

[Karenca]

72. Background Checks and Your Credit Record

Here's alot of information---Good luck:

An employment background check often includes a copy of your credit report. The three major credit reporting agencies (Experian, TransUnion, and Equifax) provide a modified version of the credit report called an "employment report." An "employment report" includes information about your credit-payment history and other credit habits from which current or potential employers might draw conclusions about you.

An employment report provides everything a standard credit report would provide. However it doesn't include your credit score or date of birth. Nor does it place an "inquiry" on your credit file that may be seen by a company looking to issue you credit. Having too many credit inquiries tends to lower your credit score.

My job doesn't require handling money. Why does the employer do a credit check?
.

Often employers use your credit history to gauge your level of responsibility. Whether a valid assumption or not, some employers believe if you are not reliable in paying your bills, then you will not be a reliable employee. Unfortunately, a bad credit report can work against you in your search for employment. For more on how a credit record can affect your job search, see the FTC's fact sheet on this topic, www.ftc.gov/bcp/conline/pubs/alerts/ngcrdtalrt.htm

In addition to your payment history, a credit report typically includes information about your former addresses and previous employers. Employers can use this as one way to verify the accuracy of information you provide on an application or resume.

I never use credit. Can an employer hold that against me?

Yes. The employer might be looking for someone who has an established record of paying bills on time. The FCRA says only that certain things like negative information more than seven years old cannot be considered. The absence of a credit history can also be considered. But if this bit of information means you don't get the job, the employer has to give you an adverse notice decision. For more on an employer's responsibility under the FCRA, see www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt053.htm>

http://www.privacyrights.org/fs/fs16-bck.htm#7

[NMDemDist2]

75. thanks!

:hi:

[China_cat]

70. Our cable company did a credit check to see

if we could upgrade from basic to digital. And yes, my husband had a credit check performed for every job he applied to after being out of work for 2 years. (In case you didn't know it, having many people check your credit report can lower your score) We're sure that he lost out on several of those because the credit was shot.

[Lisa0825]

33. I basically did that about 5 years ago....

Major depression after divorce and mother's death... I didn't even open mail for about 2 years. I just started working on rebuilding my credit last year. It can be done. DO NOT use "Credit Counseling." They will ensure you have even worse credit even longer.

It varies by state. For example, I understand collectors have very little power in Texas. the joke is that they can take you to court with a paper that says you owe them money, and if they win, they get another paper that says you owe them money. But in some states they will sue for just about anything over $500.

If this is a problem you are dealing with, go to www.creditinfocenter.com and check out their info and especially their forums. GREAT resource!

Personally, I have paid off several old debts, and some have dropped off the statute of limitations. Now I am working at getting old negatives (and a couple of fraudulent entries) deleted from my report, and adding some good new entries to my report. I have a mortgage now (it can still be done, even with crappy credit!) and am expecting my first credit card in several years any day now.

One thing that ticks me off is that many employers now do credit checks on applicants, even when the job has nothing to do with handling money. So, aside from not being about to get credit, you may have trouble getting a job too.

[Blue_Tires]

46. thanks for the insights

i've been having similar problems as well

[Radical Activist]

38. If you're willing to live with bad credit

there isn't much they can do. After enough time they start to offer deals where you can pay back less that what you owed. They know that after a year or two, unpaid debts aren't likely to ever be paid at all.

[mad-mommy]

39. I'm curious about something similar..

just thinking ahead to retirement years...what happens when you still owe money, to wherever for whatever, and you let's say, enter into the next life...can they still come after you?

[Orrex]

40. I think they resurrect you and put you to work in the salt mines

Some debts survive the debtor, meaning that some things are even more certain than death or taxes, sadly.

[judaspriestess]

43. just file a bankruptcy

believe me you can recover quickly from a BK. If you just stop paying your credit cards then they will become charge-offs and thats is way worse than a bk especially if you ever try to buy a house, the cards will be considered open debt and most mortgage companies will make you pay them off. It also affects your fico score much more. When you bk, your cards get "zeroed" out and you are allowed to start over.

[Lisa0825]

45. There's a lot more to it than that....

Bankruptcy is the best answer for some people, depending on the extent of their debt, debt-to-income ration, etc. But it is NOT an easy-out, especially after the so-called "reform" that went into effect this past year.

People should read as much as they can about credit repair, budgeting, and getting out of debt before jumping into a bankruptcy.

[judaspriestess]

49. I just went through the "counseling" now required.

its a bunch of bullshit, a way to collect $50.00 and the credit card companies trying to make you pay the debt back through consolidation which will take years. Debt consolidation still ruins your credit and your cards are closed for good and continue to be reported late because these credit places pay the cards late thus affecting your fico score. Your credit report will also say credit card closed due to debt consolidation and you have to wait a year to buy a home for example, debt consolidation does not look good on your credit either. I know for a fact people can get back on track from a bk. my colleague filed a bk a few years ago and has a 805 fico. I just ran someones credit with a year old bk and they have a 750 fico. Debt to income ratio has nothing to do with a BK.

The CCC counseling service did not even counsel me, they collected the 50.00 and said good luck and best wishes.

[Lisa0825]

53. Yep, exactly why I was warning against debt consolidation and CCCS.

But most people see it as a way to get the monkey off their back, and they do it just to stop the harassment.

[mountainvue]

91. Actually, a lot of mortgage companies

are ignoring open charge offs. I just completed a loan for a client that had a $30,000 charge off.

[A-Schwarzenegger]

48. You can claim you lost your memory and they cancel the debt.

You might have to get a note from a doctor. Say you don't
know who you are and can't remember buying anything. Do you
have a bump on your head that you don't know how it got there?

[Orrex]

73. What are you replying to? It's all a blur

And I can't remember amassing those debts, honest!

[qwertyMike]

50. Nuttin'

Credit cards (to me) are only a loan
:)

[ChoralScholar]

51. Read this site for more info:

http://www.budhibbs.com
"America's Consumer Credit Expert"

[philosophie_en_rose]

57. Exponential Debt.

Aside from the destruction of your credit - you'll end up paying late fees upon overdraft fees upon collection fees upon interest.

[leftofthedial]

58. the terrorists win

[datasuspect]

59. move to texas

one of the few states that still has debtor protections. it is ingrained in the state's history. at one point in time, inscribing "GTT" - gone to texas - was considered a de facto form of bankruptcy.

there is no wage garnishment in this state.

the absolute worst that can happen to you in any event, depending on where you live, is wage garnishment.

the shit that people will tell you about not being able to get a job is purely a scare tactic designed to keep you in line and keep you being a good drone, although you will be disqualified for certain types of employment, for examples at banks, and i'm pretty sure you wouldn't be able to get a security clearance or become a cop.

individual people attach way too much morality to their debts. it's a double standard. corporations wheel and deal in debt reconsolidations and sales, but no one even winks an eye at that.

good luck.

and fuck the creditors.

you need to eat.

[Lisa0825]

62. You are mostly correct.... except about employment....

I work for a state employment office, and believe me, MANY employers who have nothing do to with money check credit as a pre-employment screening tool. It makes no sense to me, and it infuriates me, but it is a trend. It really took off when the unemployment rate was higher several years ago, and it was basically an employer's market. They could ask for whatever they wanted and so many people were applying for the jobs that they could get it. Hopefully, since unemployment levels are not as high now (though way too many people are UNDERemployed and taking pay cuts) credit ratings are not going to be used as much.

But anyway, it was not just a scare tactic... I saw it listed as a requirement in job ads every single day. I am not in quite the same position now, so I can't say if it has subsided.

[datasuspect]

63. it is standard practice in background checks

but skills can trump bad credit.

additionally, the economy is in the toilet, there are record numbers of new BKs - credit is not the sole determining criterion.

granted, you might no be able to get that cushy exec vp or high level corporate management job, but rank and file is usually not too much of an obstacle.

[Lisa0825]

66. Not just cushy execs

I am telling you that in MY experience as an employment counselor, we have had MANY employers who specifically did credit checks and used it as a screening tool, NOT as just a part of a background check, and yes, these were for rank and file positions, not execs, not security sensitive positions, not for banks, etc.

No it is not the sole determining criterion, but it has become a more common screening tool than it ever was before. It's like credit profiling for auto insurance. Some argue it's a good screening tool. Others say it is unfair. Whether or not it is an accurate predictor, when the job market sucks, employers can ask for whatever they want and get enough applicants to choose from.

[Orrex]

68. Any guess as to the justification for it?

I mean, if I were in a financial position of missing a number of credit card payments, it might be argued that my financial need would motivate me to be a damned hard worker! Or is the presumption that the person who messes up her or his credit is an unreliable nogoodnik who can't be trusted to answer the phone?

[Lisa0825]

71. I guess they just figure it says some general things about the person...

regardless of the fact that most people end up in trouble due to circumstances in their lives (like health problems) as opposed to just being irresponsible. Even my former employer does credit checks now, and it has nothing to do with cash handling. But many people have access to personal information, for example. Even a medical records clerk has access to SS#s. Maybe they figure someone in financial trouble would be more likely to look for unscrupulous ways to use their position to try to get ahead.

[Lisa0825]

74. In fact, it was one of the things that spurred me to start investigating

credit repair. I was starting to look at other employment opportunities because there were rumors of layoffs within my company (thank goodness it didn't materialize). Until that point, I was satisfied that my credit problems would eventually roll off my credit report. But when I looked at job ads for my own personal job search and saw statements about credit checks being required for HR jobs, it scared me. So, I did my research, bought books, and started figuring out how to clean it up. My scores are up about 20 points from where I started so far, and I should be able to raise them another 10 points or more by spring, which will put me squarely in the "A" range for a refinance.

[bearfan454]

97. You are so right nt

[Karenca]

76. Bad credit can change your life

It can affect so much;

Mortgage rates are much higher,
providing you'll even be approved. Same with refinancing or home equity type loans.

Student loans and Parent loans for college....

Any cc's you do have automatically start increasing your interest rate...also,
they may lower your credit line, so
it now appears as if you're maxed to the limit,
which in turn affects your score even more.

May not be able to rent an apartment.

Employment,.

Some cell phone companies do credit checks before you're allowed to contract with them.

Same with some cable companies.


And it stays on your record forever....no matter what you've been told.

[Orrex]

77. Christ almighty

So, basically, it profoundly screws you forever, with no recourse?

Why the fuck is that legal?

That's a rhetorical question, because we all know the answer...

[ronnykmarshall]

80. Doesn't stay on your record forever.

At least from what I remember.

You can request to have negative messages on your credit report removed after (I think) 5 years.

Bankruptcy reporting stay on for 10 years. Mine just dropped off in 2004. BUT AMEX (one of the cards I filed against in '94) still will not give me an account OR allow my SO to add me as an athorized signer (we wanted to get a Jet Blue mileage card).

I don't envy anyone that is in credit debt. I went throught it for years (my own stupid fault) and finally had no choice but to file. I don't regret it.

[Karenca]

82. It sort of does in a way

It doesn't stay on your credit report forever.

But, it does stay on what's called a bankruptcies and lien check.
(bankruptcy filings, federal and state tax liens, and civil judgments).

Stays on for 20 years.

My last ex couldn't get a card from citibank last year
cause he didn't pay a citicard bill in 1985.

20 fucking years later.

[Lisa0825]

84. That's for bankruptcies,judgements, and liens, public records, I believe.

But if all you have is charge offs and such, those fall off the credit report in 7 yrs.

[Karenca]

87. Nope, It was for a citicank visa credit card that

was opened 20 years ago. He didn't even remember being that it was so long ago.

This wasn't on his credit report, but when he tried to apply for a new citicard,
he was rejected. Upon calling the telephone number provided in the rejection letter,
he was informed that 20 years ago, he had a card, for 8 months,
that became a write-off. Therefore, credit is denied.

[Lisa0825]

89. My mistake, but your own post said...

"But, it does stay on what's called a bankruptcies and lien check.
(bankruptcy filings, federal and state tax liens, and civil judgments)."

I do know that bankruptcies and liens are public record, so the credit report is not the only way to pull them up.

It could be that since it was the original creditor, they still had detailed records on him. However, the credit report itself only goes back 7 years with some exceptions.

[noonwitch]

79. They can take you to court and garnish your wages

It's irresponsible. You should always pay at least the minimum payment, then get caught up at tax return time.

[Orrex]

81. Sure, when that's possible

And it may be irresponsible, but it may also be unavoidable.

One of my two cards just doubled my monthly payment, making it extremely difficult for me to meet the minimum. So if I miss a payment again, they up the minimum again, and it becomes even more difficult to meet. Ad infinitum.

When I called to cancel the card, I asked if some alternative payment plan was possible, and I was told that the payment is standard according to policy based on this & that, and there's no other option, and blah blah blah.

[Lisa0825]

85. If you think it's that easy, you haven't really "been there." nt

[LittleFoot]

86. from a collector's standpoint

I know I'm new to DU but felt like I really needed to reply to this post. I've worked in collections for over 20 years, so let me tell you what happens. We call, yes, we send dunning letters, yes. We do report you to the credit bureau, yes. Garnish wages, absolutely. You know those advertisements you see on TV talking about your credit score? When we report you to the credit bureau, it lowers your credit score. While that may not seem like a problem right now, think of this. When you go to buy a house, a car, furniture, anything you may need to secure a loan for, when they run a credit check your non-payment of your credit cards will come back to haunt you, because the companies will consider you a high risk. They may deny your loan or give you such a high interest rate you may never be able to pay it off. I've worked in both private sector and government. Currently working for the government and we definitely have a lot more bite when it comes to non payment, such as seizing your bank accounts, property liens. Try purchasing a home with a tax lien on file (which by the way becomes a matter of public record) meaning anyone can find out and in some areas when tax liens are filed they're published in the newspaper, which can cause you embarassment. My recommendation is to contact your credit card companies, most want their money and are willing to work out some sort of payment plan, however one of the conditions to the payment plan is that you cease using your credit card. If you talk to some yahoo that says sorry that can't be done, ask to speak to a supervisor. Believe me when I say I've worked out enough pay arrangements to know that it can be done. Companies don't want to lose money. But bear in mind that when you're taking this time to pay off your debt the interest continues to add up. If you have credit cards with a high interest rate on them, look into a credit card that offers balance transfers from other credit cards for a lower interest rate. Sometimes this will lower your payment enough so you can make it. Credit counseling is also a good idea. You really don't want or need a bad credit tag on your name. And one last thought, when you apply for a job a lot of companies now are pulling credit reports to see how responsible you are. Just food for thought...

[Lisa0825]

88. Welcome to DU!

Very informative post! The only thing I would disagree withis recommending credit counseling. As I mentioned before, their goal is to get you out of debt, and most of them do not do one thing about your credit rating. If someone makes the effort, they can work on their debts and improve their credit at the same time, through pay-for-deletes and debt validation removals. You are absolutely right baout companies pulling credit reports too.. I think that sucks, since most people who get into this kind of trouble ended up here by going through some kind of personal trauma (health issues, divorce, detah in the family, etc), and don't need to be kicked while trying to get back up.

[Blue_Tires]

90. ttt