topic Re: CC lawsuits in Rebuilding Your Credit

CC lawsuits

Anonymous — Tue, 15 Dec 2020 21:47:42 GMT

Hi,

I'm hoping people can chime in and give me an idea of when OC/JDB tends to sue. How long after CO can I expect lawsuits to come?

I realize everyone is different but trying to guage timeline. As far as amount of $$, $5k-12k range owe. All the large banks like Cap 1, Citi, BOA, Chase, etc. Thanks in advance.

Re: CC lawsuits

OmarGB9 — Tue, 15 Dec 2020 23:58:18 GMT

@Anonymous wrote:
Hi,
I'm hoping people can chime in and give me an idea of when OC/JDB tends to sue. How long after CO can I expect lawsuits to come?
I realize everyone is different but trying to guage timeline. As far as amount of $$, $5k-12k range owe. All the large banks like Cap 1, Citi, BOA, Chase, etc. Thanks in advance.

There is no set answer, as you mentioned. It's hard to give a timeline. Of those you listed, Cap 1 and Chase I would say are quickest to sue. But why would you wait that long to try to take care of the debt? Assuming it's valid, I'd nip it in the bud and try to at least set up payment arrangements/settlements with all of them if you have the means to. Letting it go to court can be costly and time consuming.

Re: CC lawsuits

RobertEG — Wed, 16 Dec 2020 00:32:53 GMT

The limit for initiating civil action varies under the statute of limitations for debt that is established by each state.

Many creditors or debt owners will wait until near the end of the statutory limitation period, and attempt to collect without the time and expense invested in bringing suit.

I would begin by determining the relevant statute of limitations for your state, which will at least provide a date after which civil action would be outside of SOL. Most, but not all, states begin running of the SOL period with the date of first delinquency, so if you know the DOFD and the SOL for your state, you can usually determine the expiration date.

As to whether they will bring civil action at any earlier time, that is purely an individual business decision of each creditor/debt owner.

Re: CC lawsuits

Anonymous — Wed, 16 Dec 2020 13:22:44 GMT

Thank you.

I'd settle if it were not for the 1099 tax. It would be too expensive for me to settle and pay taxes, so I'm just hoping to delay the inevitable BK. Due to Covid, I want to delay so I can maximize its (BK) effectiveness.

Re: CC lawsuits

Anonymous — Wed, 16 Dec 2020 13:39:18 GMT

@RobertEG wrote:
The limit for initiating civil action varies under the statute of limitations for debt that is established by each state.
Many creditors or debt owners will wait until near the end of the statutory limitation period, and attempt to collect without the time and expense invested in bringing suit.

I would begin by determining the relevant statute of limitations for your state, which will at least provide a date after which civil action would be outside of SOL. Most, but not all, states begin running of the SOL period with the date of first delinquency, so if you know the DOFD and the SOL for your state, you can usually determine the expiration date.

As to whether they will bring civil action at any earlier time, that is purely an individual business decision of each creditor/debt owner.

I thank you for your insight.

AZ so SOL is 6 yrs. I owe all the big boys, Citi, Cap 1, Chase, BOA, Elan (USBank), combined $60K + so pretty sure I'm in line to get sued. I just like to know how long these banks will wait before initiating lawsuits.

Re: CC lawsuits

DebtStinks — Wed, 16 Dec 2020 15:36:21 GMT

Just my 2 cents here...

If you're terrified about being sued, and...

If you have the ability, set up payment arrangements and/or settlements.

If you DON'T have the ability to pay in any way, you might want to look at other options like CH7 or 13 BK.

Best of luck whatever your decision!

Re: CC lawsuits

DebtStinks — Thu, 17 Dec 2020 17:14:38 GMT

@Anonymous I'm curious. How would delaying maximize the effectiveness of your BK? Are you over income to be eligible for CH7 right now and waiting so your 6-month average is below the max threshhold for means test requirement?

Re: CC lawsuits

Anonymous — Thu, 17 Dec 2020 21:27:14 GMT

@DebtStinks wrote:
@Anonymous I'm curious. How would delaying maximize the effectiveness of your BK? Are you over income to be eligible for CH7 right now and waiting so your 6-month average is below the max threshhold for means test requirement?

Hi,

I'm a little over on income limit, but that's not what is stopping me. Covid is the reason. If I need medical treatment or job lost because of economy, delaying may be best. That being said, I will file once I have judgement against me to prevent wage garnishments.

Re: CC lawsuits

mycreditscoreisfair — Thu, 17 Dec 2020 21:53:31 GMT

Just my personal experience:

I defaulted on a Chase credit card that was just under $12,500 in May 2019. The account was either sold to or contracted to Nationwide Credit Inc at some point.

I then received a letter from Nationwide Credit Inc about settling for 50%. But they haven't reported it to collection agencies, yet anyways.

I haven't paid it yet, but they haven't sued and it's been close to 18 months.

Re: CC lawsuits

Anonymous — Thu, 17 Dec 2020 22:30:01 GMT

@mycreditscoreisfair wrote:
Just my personal experience:

I defaulted on a Chase credit card that was just under $12,500 in May 2019. The account was either sold to or contracted to Nationwide Credit Inc at some point.

I then received a letter from Nationwide Credit Inc about settling for 50%. But they haven't reported it to collection agencies, yet anyways.

I haven't paid it yet, but they haven't sued and it's been close to 18 months.

I thank you for this. This is exactly what I'm researching but the timelines are all over the place so it's hard for me to plan things. I guess it's the nature of the beast. I appreciate your input.

Re: CC lawsuits

jmw1 — Sat, 19 Dec 2020 04:55:48 GMT

If you got Amex, they are quick to sue and won't sell their debt so that robs you of some of your best "affirmative defenses" in your answer. They sue even faster if you have a house. If you can't pay, you really should look into bankruptcy and not wait until after you've been served.