Originally Posted by
Tock
Oh, man . . . If you file bankruptcy, you'll be screwed for life. On credit applications, they're gonna ask you, "Have you ever filed bankruptcy?" On top of that, you'll be subject to other legal constraints when it comes to debt (see a lawyer how that works in your state). Then again, if you keep your nose to the grindstone and pay off these bills, then when you finally get them all paid, your credit report is gonna say, "This guy reluctantly pays his bills," and that's gonna affect your credit.
If you can't pay your bills, here's what you do:
1) See a lawyer to find out what constitutes credit card fraud in your state, and pay the minimums for as long as it takes to avoid breaking that law (usually, you gotta stop using your credit card, and pay 6 months minimum--but verify with your lawyer).
2) Pick a few credit cards that you want to keep, and continue to do business with them.
3) Default on everything else.
4) Prepare yourself for the unhappy phone calls and threatening letters from bill collectors. Console yourself in that they can't really do anything (there is no "debtor's prison") but be rude.
4a) get a new unlisted phone number, if necessary
4b) it the bill collectors call you at work, tell them you'll "send them something" in the mail that night. Then, send them a certified letter telling them not to call you at work, but to contact you by mail at your home address. (Then, if they call you at work, you can sue them for 3 time whatever they're trying to collect).
4c) if you've charged something big that they can reposess, like a TV, they might get a court judgement so they can enter your house one time so they can seize their property and take it back. But if you've charged up food, gas, travel, well, they aren't gonna get that back.
5) Brace yourself for about 3 years of being pestered by bill collectors. The primary debt holders will sell your debt to other collectors, and after a while, those people will sell those debts to some others. Anytime a new owner of the debt calls, repeat steps 4a and 4b.
Ordinarily, I'd have some sympathy for businesses like banks, but when they send out as many unsolicited loan applications to as many people who don't want them (or who are no longer alive), that shows me they don't know what they're doing, and they don't care if they don't know what they're doing. So, screw 'em.
If they put a note in your credit record something like, "Wow, this guy was having big financial troubles, but he worked 3 jobs and 7 days a week just so he could pay off his debt, and we're quite happy, and we recommend him as a customer," well, that would be one thing. But they don't. You can work your a-- off trying to pay off your debt, and even though you went out of your way to do the right thing, they're gonna dis ya.
So, default (legally) on some of your debt, keep paying on a few credit cards, and you'll still be able to use credit cards. After 7 years, everything will be forgotton, and you'll never have had been bankrupt (which is forever).
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