Bankruptcy or charge off ???

R

riddler

i've owed money to 2 credit cards(both citi) and have been through three collection agencies thus far. i have been late since november.
1) every time a new collections agency picks up my debt does my delinquency get re set so to speak. in other words,it will never be erased after 7 years because every time a new collection agency picks it up,the delinquency starts again when i don't pay them either?
2) i owe 6,000 on one card and 6500 on another..i just recieved a notice from a collection agency saying citi will accept 3k for one of the cards. however,i don't even have 3k. if i can somehow borrow it,is this a SMART way to resolve this and salvage my credit? or should i just file for bankruptcy? i did NOT recklessly spend money on my card,i lost my job and used it to pay utility bills,food,and other things..i could not sell my home..i barley kept my house.
thank you
 
Quote from riddler:

i've owed money to 2 credit cards(both citi) and have been through three collection agencies thus far. i have been late since november.
1) every time a new collections agency picks up my debt does my delinquency get re set so to speak. in other words,it will never be erased after 7 years because every time a new collection agency picks it up,the delinquency starts again when i don't pay them either?
2) i owe 6,000 on one card and 6500 on another..i just recieved a notice from a collection agency saying citi will accept 3k for one of the cards. however,i don't even have 3k. if i can somehow borrow it,is this a SMART way to resolve this and salvage my credit? or should i just file for bankruptcy? i did NOT recklessly spend money on my card,i lost my job and used it to pay utility bills,food,and other things..i could not sell my home..i barley kept my house.
thank you
More...

check IRS rules for this one. If it's over a very low amount I think then you owe taxes on monies above that low amount -- as if you actually earned it.

so you pay 3k then say another 500 in taxes due to the IRS.

not sure, but I think this is something you want to look into.
 
Do not pay. The statute runs from the date of your last payment. Not from the date they sell the debt. Charge off. Way better than bk. It's unsecured debt dude. Don't sweat it. Us your credit it just as ruined if you settle it. Best just not to pay. They will go away
 
Quote from riddler:

i've owed money to 2 credit cards(both citi) and have been through three collection agencies thus far. i have been late since november.
1) every time a new collections agency picks up my debt does my delinquency get re set so to speak. in other words,it will never be erased after 7 years because every time a new collection agency picks it up,the delinquency starts again when i don't pay them either?
2) i owe 6,000 on one card and 6500 on another..i just recieved a notice from a collection agency saying citi will accept 3k for one of the cards. however,i don't even have 3k. if i can somehow borrow it,is this a SMART way to resolve this and salvage my credit? or should i just file for bankruptcy? i did NOT recklessly spend money on my card,i lost my job and used it to pay utility bills,food,and other things..i could not sell my home..i barley kept my house.
thank you
More...

you probably wont get a decent answer here. it is difficult for some one to understand your position without knowing all of your funds.

in relation to the 3k payoff. at least they are talking to you and trying to get payment that way than taking you to court. whether you agree is down to one the interest rate on borrowing if you can get the money and whether you can pay that off are you working now.
 
TAke you to court? Lmfao!!!! You can't be serious. Citibank would never even try to get a judgement on that small amount. You really believe everything unlike your namesake morgan
 
Quote from Zentrickster:

TAke you to court? Lmfao!!!! You can't be serious. Citibank would never even try to get a judgement on that small amount. You really believe everything unlike your namesake morgan
More...

i used to be a bankruptcy clerk in england. people were taken to court for hundred of pounds for the principle to say you can't get away with it. they do bulk court applications and send a solicitor down on one day to do all of the cases with one days costs. believe me they do it. maybe it is different in the us but here they do it and it is big businesses for them. even if they don't do a creditors petition for bankruptcy they will bring about a charging order or a attachment of earnings order. either way the cost is at most a few hundred pounds and with that bulk court hearing they do they will end up better off doing it that way.

like i said maybe it is different in the states but over here it is big business and i have worked in that industry so i am one of the best people to ask about. the reality of businesses claiming. the worst thing is if citi sell the debt off to a debt factoring company. they will make your life hell by calling you at home, at work, sending people to your door, screaming at you, threatening you etc.

like i said maybe it is different in the states but that is the experience in england and we have other ways to sort out insolvency such as individual voluntary arrangwments.

don't by any means think that because citi is a big company that makes (loses hehe) billions that it will not chase you. it will and if it doesn't it will sell the debt off to a debt factoring company. think about it you have thousands of people with a few grand owing with cards and you know they might not be able to pay it off so you sell that debt to a debt factoring company for half of its value they make peoples lives difficult to get them to pay up. that is how it works.
 
Who is going to lend you money to pay a debt that you can't pay? It would have to be a friend or family member and trust me, better to owe the card company. They will likely take 10 cents on the dollar eventually.

It is not the end of the world & right now you have plenty of company with a lot of others unable to pay.

You will get credit again when the charge off falls off your credit report. You are learning a valuable lesson right now. I went through similar problems in my youth and have avoided debt ever since. I am now in my 40's, own my own home with no debt at all. I have a line of credit of over 300,000 but after going through what I did it is rarely used.

DO NOT;
1) Give them post dated checks.
2) Give them electronic access to your checking account.
3) Fall for their scare tactics.
 
Bk is worse on your record by far than delinquencies. Fight them, if you can change your address and they can't find you you're fine after the statute of lims runs out...

If the collectors are doing illegal things [depends on your state] keep records of it and then you can sue for a lot more than the credit card amounts.. multiple phone calls is illegal in my state but they all did it until I told them it was illegal... had I it to do over I'd have electronic records of all those calls and I'd have an attorney on it...

If they do get you to court demand to see a contract with your signature. I've heard that typically they don't really have that. If so, demand that the Judge cancel the whole mess until they have legal proof you owe them...

I'm about a year from statute of lims day here, I moved and the collectors can't find me so far.. my guess is they know that I put up a fight and they have a lot of pushover people to collect from in the current environment.....

I'm struggling towards profitability in trading, when that day comes I'll talk to an attorney and find out if I want to pay them or let it go... if you make one little payment it resets the time to statute of lims......
 
First of all...it gets reset as often as they want it to be reset as long as its not paid. It goes off your record 7 years after you pay it off. If you never pay it off, they can keep it on your record indefinately. The statute of limitations is only how long they can sue you afterwards. You might get lucky though and they forget about you after so many years, but even if you are at the bottom of a pile somewhere, they will sell your debt to someone eventually and then that new credit agency will come after you.
 
You must log in or register to reply here.
Back
Top