topic Re: CLINGING! in General Credit Topics

CLINGING!

Anonymous — Fri, 18 May 2018 03:40:58 GMT

My wife and I are in hot water. I have 14 credit cards she has 26. We have no assets and no extra sending cash. My wife is on disability and we are no longer able to pay for all the cards. I work 9-10 hours daily, so getting a second job isn't an option. She wants to stop paying her accounts and I don't think that's a good idea. I understand that she is "judgement proof" but to just stop paying for 26 cards seems drastic to me. I make a decent living, but the cards are keeping us from saving and we sometimes fall $300 short. We have really tightened out belts as it were this year and there simply isn't anymore water left in the well. What happens in 6 months regarding her credit report. Will she have a score of 0? Will she be able to get credit again at some point after the SOL is up or before? I would like her to have at least one card in case of emergency. Can she keep one and get rid of the rest? In all honesty, with 26 cards gone, we are pretty much on easy street and I think she doing it as a scarfice. My main concern is starting a family and getting our credit in order so we can buy a house down the lline. What do we do?!?!

Re: CLINGING!

Brian_Earl_Spilner — Fri, 18 May 2018 04:08:45 GMT

If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 7 years.

Re: CLINGING!

Jnbmom — Fri, 18 May 2018 03:57:25 GMT

She plans on defaulting on 26 cards? She "may' be judgement proof but as the other poster said laws may vary. Her reports will be a MESS for a long time. How much does she owe on all the cards?

Re: CLINGING!

Jnbmom — Fri, 18 May 2018 04:00:10 GMT

@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 10 years.

Aren't judgements renewable as well?

Re: CLINGING!

Anonymous — Fri, 18 May 2018 04:31:43 GMT

No she can't go to 0, the lowest FICO score is 300, I've seen posts by people in the 400 & 500s that are desperately trying to rebuild. I'd bet their advice would be to minimize damage, don't see how low she can go.

I know a few questions the more experienced members will ask you. What cards do you have? What are their CLs, and how much do you owe on each one. Which cards can you pay off? How much can you pay towards each one?

I'm not an expert, I'm pretty new to credit. But, I think your idea of her having one card is a very good idea... at least till you and your future family are in that new house in your future. Defaulting on all your cards will only make your future more difficult. Try and do the most you can now.

edit... "26 cards gone, being on easy street" Do you mean defaulting on all of them, or shutting down. trying to pay?

Re: CLINGING!

Brian_Earl_Spilner — Fri, 18 May 2018 04:10:46 GMT

@Jnbmom wrote:
@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 10 years.
Aren't judgements renewable as well?

Depending on jurisdiction, the SOL on a judgement lasts between 10 and 20 years. And yes, it can be renewed.

Re: CLINGING!

Brian_Earl_Spilner — Fri, 18 May 2018 04:14:57 GMT

Something else to keep in mind, if she got those cards and limits prior to becoming disabled and going on a fixed income, she will probably not be able to come close in the future because of the fixed income.

Re: CLINGING!

Jnbmom — Fri, 18 May 2018 04:19:34 GMT

I am sorry but stating if you default on these cards you will be on "easy street", sorry but that just doesn't seem right. Not trying to judge but that doesn't sit well.

I understand how debt can accumulate believe me, we had a job loss and we were living beyond our means, I tried for 2 years to pay what I owed but finally had to declare BK, toughest thing to do but it had to be done and I sat back for years before I got back into the credit card world and now I am overly careful with our money/debt.

Re: CLINGING!

pipeguy — Fri, 18 May 2018 04:59:40 GMT

One of the advantages of opening cards in only your name, rather than joint, is that a default be it a 30 day late or a bankruptcy only affects the person that has the account, not the spouse. Since you said you have no assets, such as a house and the fact that she is on disability opens the possibility of bankruptcy for her only.

While I am NOT a fan of filing bankruptcy as a matter of convenience, if she is carrying a balance on 26 cards (OMG) I have no doubt that is killing your options. You said that you are not in the same situation and that you make a regular income - by maintaining your credit properly you alone can qualify for a mortgage in the future if your income alone will cover the mortgage requirements.

I would suggest two things: #1 speak to a bankruptcy attorney about the possibility of having her alone file bankruptcy - note that any card established as joint credit will remain your obligation. #2 seriously examine how you got into this situation in the first place, having 26 cards all carrying a balance suggests a major spending problem a total lack of control using credit.

Bankruptcy is a painful fresh start, painful because it takes years and a lot of discipline to recover, but you can always make her an AU on 1 of your cards - considering the history of total lack of spending control I certainly would not make her an AU on more than one card.

You also did not mention what kind of disability she is on, or if its temporary. If she is collecting SSDI there is an allowance under SSDI to work and earn some income without giving up the SSDI benefit. I assume she is not on SSI because she couldn't have 26 credit cards on SSI and the cash and real assert restriction is much greater on SSI.

Re: CLINGING!

Anonymous — Fri, 18 May 2018 05:44:27 GMT

Willing defaulting on 26 cards, why would someone even consider it as an option??? I am speechless why anyone would default to 'be on easy street'.

You have other options:

Call credit card companies to reduce interest rates. Use the snowball effect to pay off cards. - I did this.

Low interest Consolidation loan (cancel the major of the paid off cards).

You work 9-10 hours a day...7 days a week? Weekend job for a while? I did this, cleaned offices on weekends for almost 9 months. My day job was M-F 6-3 not including commute time.

Cut expenses, I am always amazed what people won't even consider to reduce expenses. I cancelled cable, suspended cell phone service for a few months. No dining out. Entertainment had to be free, walking to the local library and checking out a book or hanging out at a park.

Even BK is a better option, if you really cant pay your debt.

You are talking about defaulting over $300 a month. It's better to do what is right, than what is easy.

Sorry for the rant.....reading that anyone would consider this is absurd.

Re: CLINGING!

Kree — Fri, 18 May 2018 10:50:43 GMT

If you can tutor a high school kid for 20 bucks an hour 2 hours a week. That would be 160 monies in your pocket. Halfway there.

If you can't. A few hours of uber saturday morning might earn the same.

Re: CLINGING!

Anonymous — Fri, 18 May 2018 20:08:42 GMT

<mod edit: We can't discuss or suggest that here. -UB> The result of that was more money was stolen from us, in addition to lost equity and investments, in the form of taxes to bail out criminal institutions that were declared TBTF.

This being said, especially if one is to BK because they are in way over their head in frivolous debt (not saying this is OPs case!), it is extremely important to analyze and eliminate factors that contributed to the BK when moving forward. BK is a fresh start and a fantastic opportunity to choose to live a simpler cash based lifestyle, and learn to use credit not only responsibly, but to YOUR advantage!

Re: CLINGING!

Anonymous — Fri, 18 May 2018 17:06:05 GMT

@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 7 years.

so_broke_it_hurts, love the name! We're not a community state so that's good news. They can try, but I can't pay. Also no cards were joint applications. In NY, I was reading that regarding the credit, it says the SOL depends on the state of the bank. So for Discovery for example, the headquarters is in DE. The SOL for DE is 3 yrs. So does this mean once she stops paying it will show up for 3 yrs on her report then drop off?

Re: CLINGING!

SOGGIE — Fri, 18 May 2018 15:39:07 GMT

OP: Here is my suggestion, without the unnecessary sarcasm or criticism. Perhaps your spouse's lenders offer a Payment Hardship Plan. To get a better understanding of how it works, visit: https://bettercreditblog.org/secret-credit-card-company/

Best of luck to the both of you!

Re: CLINGING!

Anonymous — Fri, 18 May 2018 15:41:25 GMT

@Jnbmom wrote:
She plans on defaulting on 26 cards? She "may' be judgement proof but as the other poster said laws may vary. Her reports will be a MESS for a long time. How much does she owe on all the cards?

She owes about $50,000. I think she would try and keep three but again, it's sitll a lot of cards to walk away from.

Re: CLINGING!

Kree — Fri, 18 May 2018 15:41:43 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 7 years.
so_broke_it_hurts, love the name! We're not a community state so that's good news. They can try, but I'm not going pay, since no cards were joint applications. In NY, I was reading that regarding the credit, it says the SOL depends on the state of the bank. So for Discovery for example, the headquarters is in DE. The SOL for DE is 3 yrs. So does this mean once she stops paying it will show up for 3 yrs on her report then drop off?

the SOL is how long they can Sue her. In NY it will remain on her report for 6 years I believe. (7 years everywhere else, someone else might correct me.)

Re: CLINGING!

Anonymous — Fri, 18 May 2018 15:44:03 GMT

@Jnbmom wrote:
@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 10 years.
Aren't judgements renewable as well?

I think they are only if she promises to make payments or agrees verbally to the creditor or collections that they are her debt and then it will renew again from that point. Someone please correct me if I'm wrong.

Re: CLINGING!

Anonymous — Fri, 18 May 2018 15:52:06 GMT

@Anonymous wrote:
No she can't go to 0, the lowest FICO score is 300, I've seen posts by people in the 400 & 500s that are desperately trying to rebuild. I'd bet their advice would be to minimize damage, don't see how low she can go.

I know a few questions the more experienced members will ask you. What cards do you have? What are their CLs, and how much do you owe on each one. Which cards can you pay off? How much can you pay towards each one?

I'm not an expert, I'm pretty new to credit. But, I think your idea of her having one card is a very good idea... at least till you and your future family are in that new house in your future. Defaulting on all your cards will only make your future more difficult. Try and do the most you can now.

edit... "26 cards gone, being on easy street" Do you mean defaulting on all of them, or shutting down. trying to pay?

I didn't know all those questions would matter. This credit stuff is intense. She wanted to keep the oldest card JCP mastercard which she owes ove $6,000 (I think $200 available) and keep one of her capital one cards which she owes $800 ($300 avail). The problem is how do we minimize damage if we pay some and can't pay others and some meaning the 2-3 that she will keep.

Easy street meaning not paying for most of them. Shutting down and trying to pay for all the cards can't be done any longer. No money to spread around the min payments any longer. We've been trying this for 6 months since the disability and we don't even have an extra dime.

Re: CLINGING!

Anonymous — Fri, 18 May 2018 15:53:29 GMT

@Brian_Earl_Spilner wrote:
Something else to keep in mind, if she got those cards and limits prior to becoming disabled and going on a fixed income, she will probably not be able to come close in the future because of the fixed income.

Sorry, what do you mean by come close?

Re: CLINGING!

Anonymous — Fri, 18 May 2018 17:07:32 GMT

@Jnbmom wrote:
I am sorry but stating if you default on these cards you will be on "easy street", sorry but that just doesn't seem right. Not trying to judge but that doesn't sit well.

I understand how debt can accumulate believe me, we had a job loss and we were living beyond our means, I tried for 2 years to pay what I owed but finally had to declare BK, toughest thing to do but it had to be done and I sat back for years before I got back into the credit card world and now I am overly careful with our money/debt.

I understand, and just a poor choice of words, but please understand for the last 8 months, I've not slept, lost weight because of not eating, worrying every minute. 99% because of my wife's condition and 1% because of the cards. I just need a break and if I can concentrate on her health and forget about the cards for a sec, that's easy street to me. One less thing to worry about!