First off, you stop missing payments, they'll just start calling you. Quite a bit too the longer you wait.
After 6 months, it's written off. Credit takes a hit, but nothing ridiculous. Settlements may be offered as well along the way.
Calls keep coming. More months pass. Settlements may be mailed depending on who buys off the account. Calls vary as the account keeps getting passed/sold on.
This continues for a year plus easy, then maybe, MAYBE they file suit along the way to issue a deficiency judgment. Prove you can't pay (i.e. make less then what you owe?). Judgment most likely continues. And continues. And continues (just keep gong back to court!)..otherwise the above repeats ad nauseum.
Maybe they can try to start seizing assets, maybe not. Varies.
So. I owe a lot myself. Stopped paying because I missed a couple by accident and the rates jacked up to kingdom come (along with the payments).
It has been 15 months since I stopped paying, everything written off, what have you. Here's what's happened:
-Numerous calls (a given, but they go to my cell phone)
-Numerous settlement offers (averaging $.50 on the dollar)
-1, 1 deficiency judgment so far (out of a few accounts..more on that part in a bit).
So today I was in court for the d.j. 75 people were there total. This is a small, district court for basic cases and the like. Collectively, all owed I'd probably say around $250K-$300K (conservative estimate). Most were returning visits.
Spent 2+ hours there as they call you individually in, go over basic finances, etc. to see if you can pay anything. When left, still a dozen people remaining...so they were there until closing.
Mine continues on right now...I'll settle it anyway before it gets completely out of control.
Now, here's a good one. One of my acct.'s was AMEX. Wrote that off a while ago. I'm getting 2 settlement offers now; one from them directly, one from Northland Group, both for different amounts. So, who exactly has this account now...I think it's pass the potato around, first one to get the money wins, the others lose out (even though there are stories that people get calls later on as these accounts still get sold again). Even if it's the original account/card holder trying to make a bit extra coin.
Right now I don't care, because a) I have nothing they can really seize. b) I intend to settle eventually anyway for $.50 or less on the dollar & c) I'll have things repaired and restored shortly thereafter.
In the end, the rabbit hole goes so deep and so layered, no one knows what it's truly like.
