What can credit companies do to you if you don't pay or file bankruptcy?
I do not own a house or have any money in the bank. I do own a car. My job has cut back and i can no longer pay my credit cards. I have no money to file bankrupsty. Besides the calls, what can they do to me if i never pay them?
The credit card company will try to collect for 180 days. After that, the account will be sold to a collections company, which will then pursue the debt.
It depends on how much you owe each company. If you owe, let’s say, $500, they will harass you on the phone, send dunning notices and threat through the mail. It is unlikely, though not impossible, that they will pursue it further because of the cost associated with legal action.
If you owe a substantial amount, legal action may prove beneficial.
The collection agency can file in court for a judgment against you, which will most likely be awarded. Then they have to figure out how to get the money from you. They can attach your bank accounts in the same state where the judgment was granted. They can attach your car if you own one outright.
They can attach your wages, which is where they will go first. A notice will be sent to your employer ordering that a certain percentage of your paycheck be withdrawn and forwarded to the creditor to resolve the debt. The employer has no choice in the matter.
What you might want to do is to call the company and see what, if anything, you can work out. Some credit card companies (if they still hold the debt) have a variety of repayment options, many of them interest-free for up to one year. Other credit card company, unfortunately, won’t talk to you.
Collectors are commissioned on what they collect. They would rather pressure you for big payments than work with you.
Whatever you do, keep copious records of your efforts to contact them, the offers you made, plans you proposed for payback. Note the time, date, numbers you phoned, parties to whom you spoke.
If you get sued, you will be notified. You can appear in court and explain that you have tried to resolve it but that no one would work with you. BUT you must have details of these efforts. A judge is more likely to listen and consider your situation.
August 7th, 2010 at 7:33 pmThey have the right to go to court and get a judgment against you, (sue you). And they report it on your credit report for 7 years, 10 if it becomes a judgment. You will have a hard time getting credit. Try to pay them a little bit at least. Call them,they might help you out.
August 7th, 2010 at 7:33 pmgirly is correct but they can also attach a garnishment to your income and get their money that way
August 7th, 2010 at 7:33 pm