To let cards charge off? - To file ch7? - Or to just not pay?

[Anonymous]

Hey all, 

Thanks for taking time to read this. I read the guidlines for this particular board and it seems to be the right place to post. I am neck deep in debt and I don't know what to do next. I have 10 CCs between 6 CCCs. I have been unemployed for an extended period and have no income. Im searching for work, but I don't know if it will be a month or 6 months before I will have a paycheck.

All the CCs are scheduled for CO starting at the end of this week going thru the end of July. Total CC debt is about $56k. I am also in installment agreements with state and fed taxes, which I have been paying on schedule. I have made a payment or 2 on each of the cards over the last 6 months trying to push off the CO date. CITI is scheduled to CO (2 cards) this week. Should I make a payment to push it off another month? Im living off an non-retirement investment account that is currently down to about 12k. IF I go the CO route, will CITI sue and how long will it take them? CHASE is up next with the same question.

I'm aware that bankruptcy is a very real possibility. Im trying to figure out if I should consider filing very soon, wait until the threat of a suit, or just not pay due to the fact that my investment is my only real asset, which is getting smaller by the day as I withdraw to pay regular expenses. I rent and own an old vehicle, no boats or nice cars or anything. 

Please someone with some experience give me a bit of direction here, I need to make the CITI decision within a day.



Thank you.

[Comet21]

I am not sure how long it takes for a CC company to file a suit. I went over a year without paying Bank of America CC with over 30K balance and it was never mentioned of being sued but I am sure it would have happened eventually.

[Anonymous]

ok BOA is another one of the companies I owe.

I wish I was in a position to offer a settlement.  Id like to make this right in some manner but its looking more unlikely.

Anyone have experience with CITI or CHASE?  Im pretty sure this is all leading to a CO sooner than later, im wondering if I should just stop the sporadic payments and let it CO.

I just cant get sued immediately and that is what im primarily concerned about. 

Thank you. 

[Anonymous]

Aso Comet21, did BOA sell the debt or keep it in house?  Im wondering the same for CITI and CHASE if anyone knows.  Im just trying to prepare the worst if it comes to that.

Thank you.

[Comet21]

They sold it after CO. To a law firm/collection agency. It was with them for probably 6-8 months before we filed CH. 7. 

[emptypockets]

You should go have a consultation with an attorney to dicscuss your options. What is the point of taking what little you have to stave off CO, if at the end (if the acct is down to 12 k, the end IS coming), the cards get charged off anyway. You are paying the taxes, which are basically non- discharge able. I don't know the logic of trying to save cards which in all likelihood are a lost cause, unless you have a concrete job offer and are able to start paying enough to keep them from defaulting. Settling the debt would probably be an option if you for sure had a new job, and knew how much you could afford to Pay. A attorney consult is free, and you can contact different ones to get more than one opinion. They should know how long it would take for a CCC to file suit, etc. good luck with whatever you decide to do,

[compassion101]

I agree with emptypockets, you need to speak with an attorney.

With the limited info above, I'd estimate that 56k+ in debt is reasonable to take bankrupcy over in many circumstances, but of course we don't know all your circumstances. How badly will BK affect your ability to get hired in your particular field? Is it possible you can expect to find a job soon that will pay you 20-30k/year above what you can live off of, in other words if you can budget to live off of 30k and find a job for 50-60k and pay back in 2-3 years. IDK, alot of personal info to think about that only you would have access to and maybe can share with an attorney.

[Anonymous]

Does anyone have any feedback on how long it might take CHASE to take any legal action after a CO?  Ive confirmed Im safe with CITI for awhile.  My CHASE balances total about 10k and they know I have no income or assets.

Thank you

[FrugalRican]

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@Anonymous wrote:

 Im living off an non-retirement investment account that is currently down to about 12k.

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I think you'd be better off at using this to survive, rather than to be worrying about debt. You NEED an attorney at this point.

And if BK becomes an option, you are going to need part of that 12K to file.

Out of curiousity, how did you get up to 56K?

[Wantgdcrd]

I had 3 chase cards ,Discover, BOA, CItbank and did not pay for 26mos, before finally filing bkptcy. They never did sue me. Cap One sued me after 18mos.  My partner has not paid any of his Chase cards, 6 others in 24 mos. No lawsuits for him yet either.  You are just throwing away money once your late the damage is done to your cr report.  We are waiting for retirement to file his bankruptcy.   You may not get sued.