Bad Credit....

[Dr.Evil]

ok, i have about $20k in credit card debts from 5 different banks. what would happen if i just said screw it and not pay it?

i really don't care about my credit at this point. i don't plan on ever applying for a loan for the rest of my life. could i get into any legal trouble by not paying my credit card debts?

[BigD]

why not file bankruptcy?

[Dr.Evil]

Originally posted by BigD
why not file bankruptcy?

i have a home and 2 nice cars. could i lose these posessions in part or in whole if i file for bankruptcy?

could the credit agency take these away from me if i don't pay them back?

[Wimmpy]

I had a friend in the same boat. He needed to file bankruptcy due to some legal problems. He selected the accounts he wanted to file on and his attorney did the rest. He know has no debt and his credit is better than mine! Still has his house and truck.

[tryingtogetbig]

No Dr. E, they can't take them away. When you file bankruptcy you are entitled to certain things to keep. One being your home, others include your car, etc. A lake home in Tahoe would prolly get auctioned off by the bankruptcy court, but you get to keep your basics. And more than likely, within the next 4-5 years you will be able to buy a house, car, credit cards, etc.

Remember that bankruptcy falls under Federal Court. If I were you, I would go and talk to a bankruptcy attorney just for advice and then do any "rearranging" of your assets that you might need to do. It has been a while since I studied Federal Bankruptcy law, but I could probably find some things if you needed.

ps-it's not the creditors that get to decide the dividing of your assets. It's the judge. As soon as you file your intent to file bankruptcy, no more creditors are allowed to call you by law.


peace,

ttgb

[bex]

Yes they can take your goods but it takes a long time .....IE they have to take you to court and if you still dont pay they will send in the bailiffs
And sell you good for a lot less than they are worth.Then they will also charge you alot more for court costs and admin..

[Dr.Evil]

that's good info. what about student loan money? if i file for bankruptcy would i not be responsible for that anymore too?

[Billy Boy]

Contact an agency that deals with your creditors they will talk to them and tell what you can offer on a monthly basis,if you do not pay them interest is added and you end up with a huge debt.It will than lead into a court case and if you don't turn up a warrant for your arrest can be made.

If you own your own home an attachment can be placed onto your house so if you ever sell it they have the right to take the full debt from the value/sale of your house or if you have a big debt they can force you to sell your house but this is a lengthy time consuming process.It can get pretty shitty if you don't deal with it and it does catch up with you in the end.

Technically even if you offer tp make a repayment of $10 a month to each creditor you are offering to make a payment and there is very little they can do.

[Dr.Evil]

Originally posted by Billy Boy
It will than lead into a court case and if you don't turn up a warrant for your arrest can be made.

If you own your own home an attachment can be placed onto your house so if you ever sell it they have the right to take the full debt from the value/sale of your house or if you have a big debt they can force you to sell your house but this is a lengthy time consuming process.It can get pretty shitty if you don't deal with it and it does catch up with you in the end.

shit that sucks. would that happen even if i file for bankruptcy?

[Ironweb]

That is one of the unfortunates. You will not be able to include student loans into your bankruptcy.

[Billy Boy]

Bailiffs are easy to deal with don't let them into your home EVER they have no righjts to gain access.If you let them in they will check the contents of your house and make a list.Once you have allowed them access they can gain access to your home whenever they like and you do not need to be in.They can force entry as long as they make any damage good when they leave and they have to leave the building secure.Bottom line tell them to piss off and that you know your rights and then refuse them entry

[Billy Boy]

If you claim bankruptcy you will loose your cars for sure and any "extras" the court deems suitable to your creditors.

Write to your creditors and tell them why you can't make payments and then offer them some amount like $10 a month.They will accept this normally and will hold all interest on your accounts and review it after a 6 month period.A lot of them will drastically reduce the amount you owe and will sometimes knock as much as 80% of the amount owed for the simple fact that getting 20% off you is better than getting sweet f**k all.

[Canes4Ever]

You can just decide not to pay, but then your creditors can go to court and get a lien against your property. Then when you decide to sell you have to pay off those debts to the creditors satisfatction before you can sell the house. I also believe if your home is mortgaged you can't get the deed to your house until you have paid off that lien. So in that case you can't sell the house til its paid off.

By the way if you die your inheritors also are responsible for the debts.

I hope you like the house you own, because very likely you're gonna be there for a longtime.

[Canes4Ever]

Originally posted by Billy Boy
Bailiffs are easy to deal with don't let them into your home EVER they have no righjts to gain access.If you let them in they will check the contents of your house and make a list.Once you have allowed them access they can gain access to your home whenever they like and you do not need to be in.They can force entry as long as they make any damage good when they leave and they have to leave the building secure.Bottom line tell them to piss off and that you know your rights and then refuse them entry

Are you sure this law applies to the U.S. as well ? I'm not sure ANYONE can force entry into a home in the US except police with a warrent.

Can someone clear this up ?

[tigress]

I suggest you contact a lawyer since the laws are different depending on your location.

[tryingtogetbig]

No, actually the laws are the same throughout the US, at least regarding bankruptcy. Bankruptcy falls under federal statute, not state. And bro, you do need to talk with an attorney. There is a lot of advice being given here that is not correct. I won't go into too many details, but trust me, anything that you don't own outright (home, car, "fixed" assets to your home - which includes just about everything, and even a certain amount of cash) can be included as an "exclusion" from your bankruptcy proceedings. Those creditors won't fuck with you (the ones you choose to keep paying-home, car, etc.) because they obvioulsy want their moeny. 9 times out of 10 if they repo a car, home, etc they lose money because the market value plus court costs, repo costs, attorney fees, etc are far less than what they can get if they sell it. I will tell you this, claim all of your credit cards under the bankruptcy because if you don't then after you file then the credit card company will close your account anyway and then you have to pay. I am here to tell you that I know several people, and have studied this, that have filed bankruptcy - 1 person wrote off $75,000 to debtors- and were buying new cars 3 years later. They did pay a higher interest rate for their financing (around 17-18% simple interest), but in the long run they came out far ahead. You need a good attorney!!!

Good Luck bro.

peace,

ttgb

[RON]

Originally posted by Billy Boy
If you claim bankruptcy you will loose your cars for sure and any "extras" the court deems suitable to your creditors.

In the US at least Billy they can't take your car. Its considered a necessity.

[viper]

DR E...your best bet is the get a consult with an attorney the handles these types of matters as was mentioned earlier...it usually only cost 25 to 100 dollars for the consult depending on who you see (call for prices)...
i do know that they can't take tools that you use in your trade or business...so if they ask, we will say you work here at AR and your gear (or tools of the lifting trade as we call them), will be safe..........


just kidding guys.....LOL.....find out the legal stuff and then start hiding your extras like stereos, tv's, etc.....good luck..

[sniper105]

Dr. Evile why don't you quit buying secret volcano lairs, and trying to take over the world. That would save money. Ha ha...

If it helps I believe that last I checked you are eligible to keep one car per eligible driver in the household. e.g. you and your wife have valid drivers licenses then you can keep two cars. Good luck.

[jersey juice]

Well I work for a financial corporation doing Real Estate, if you have a mortgage on your home and stop paying your house will be in foreclosure and then you'll be evicted by the county sheriff. If you have a car payment and stop paying like my brother did, the repo man will come to your house in the middle of the night (yes they do!) and reposses the car. Are you self employed because then you can file Chapter 13 bankruptcy and that would clear you of alot of responsibility provided it's for business use or you can file chapter 11 which you fuck you for I'd say about 3 years until someone even decided to give you credit at which point your interest rate would be through the roof. If you don't care about getting credit then file chapter 11 bankruptcy with your attorney and he will contact all the creditors who will now shit themselves because they can no longer threaten you and they'll never see a dime or they can work out a payment plan to get all your overdue bills current if you choose. I say talk to your attorney since I don't know everything involved with your case and I'm sure he'll be able to find a loophole that you'll be able to keep what you have and not pay another bill to your creditors, or minimal payment at that. Just remember that once you file your fucked for some time. My buddy who filed kept all of his company trucks and construction equipment and even started getting some credit back 2 years after. Good luck whatever you decide.

[sp9]

Its a great country, you don't go to jail for not paying bills!

Seriously, It depends on the chapter you file under. You can retain your house, cars etc. and just file for unsecureed debt like your credit cards. I think student loans are protected from bankruptcy. What will happen is the judge will look at your assets, and income and come up with a payment plan for your creditors. For example say you owe 30k in unsecured debt. Depending on your finances the judge may ask you to pay $300 per month for 2 years to your creditors in one payment per month, the rest would be forgiven. 30000-7200= 22800. As soon as you file you will get credit card offers again in the mail, this happens because there is a law that you can only file either every six or ten years so the credit card companies will know you can't file again so they are after your business right away.

It isn't all roses though, it will stay on your credit report for a minimum of 7 years and when you go for any car or home loan your going to get an interest rate that represents what they think is a high-risk borrower.

Who foots the bill for all bankrutpcies? The American consumer because charge offs cause companies to raise rates to the customers that don't file bankrupty. If there is any way around filing I would find it but if you are really stressed about the bills and it is harming your relationships, personal life, etc, that is what bankruptcy is for. To give you a chance to try again.

[Dr.Evil]

cool. that was all very helpful. thanks a lot guys.