I'm wondering if anybody here knows what happens when you stop paying your credit cards. I've applied for a job at 6 places and got no phone calls. I have a couple of weeks to make a decision and wondering what I should do.
What kind of advice is that? They can sue you and depending on the state they can garnish your wages, but in many states (florida is a good example) if you are head of household or have dependents they won't be able to do anything. It all depends on the balances. If you have a 500 credit card balance they are unlikely to sue (not worth the money) collectors will harass the hell out of you but won't do jack. If you have a 20,000 balance, and they look at your credit report and think you have an income stream and or assets, they very well can sue.
you mean to tell me his bank account is also zero? Btw, when you cards get discharged whoever purchases your loan they have a right to go after you for several years (I think 5 in florida) So 4 years from when he thought it was all over he could get sued, and by that time he could have a job and a stream of income etc. I knew people who had their car repossessed and were sued for balance several years after car got resold(similar situations with credit cards too). Live and learn.
I have a total of 41 cents in two bank accounts and no car. I don't own property or anything really. The debt on one card is about $9000 and the other two about $1800 and $1000. I live in Quebec, Canada. I'd like to be able to hold on to at least one credit card. I could always try to pay off two cards for the next month and not pay the $9000 one. Then if I get a job, I could start paying off that other card. It's kind of embarassing but there isn't that much I can do about it except keep on applying for a job. I'll have a bit of money on the 15th from someone temporarily helping me out. I'll be able to eat until the end of this month but that's about it. I have no extra money at all.
Damn, hearing this kind of story is heartbreaking. Since you say you live in canada this changes everything. Laws in canada are different than USA so I can't help you there. From your statements you are judgment proof so I would not worry about it right now. Do you have relatives? Can you live with them?
How long do you expect this situation to last? If you have prospects of regaining employment soon, then you need to get the credit card companies on the phone now, before you go delinquent, and tell them the situation. You will still owe late payment penalties, but they won't immeidately start collection efforts which involves tracking down neighbors, relatives and even your landlord. If you don't expect that you are going to have enough income to make the payments, then you will need to head to bankruptcy court. (I'm assuming the laws in Canada are similar to the laws in the USA). You will need about $1000 or more for attorney fees and court costs, but once it's discharged, you do not owe anything. There will be replies in this thread calling you a loser, deadbeat, etc, but you are none of that. The law of the land allows you to declare bankruptcy and you are penalized severely for doing it. You aren't getting of scot free and it's not a personal decision, it's a business decision.
They can't collect unless they can serve you. If you move and don't give anybody the address and you inform them of your rights to not be harassed, the collection people can't even make the phone calls except on the day and time you designate. [California law] I told them Thursdays between 11am and 1pm or something like that and never answered the phone... they will give up after a couple of years... but if you are looking for a serious job a bad credit rating might go against you. I would not do BK over credit cards, better to just stiff them, a BK stays on your record a lot longer than CC debt.. I had a friend that went BK on CC debt and back taxes however, the judge just charged off all the credit card debt and scheduled payments on the taxes only, the fricking judges have to think about their retirements 'ya know... Now my credit rating is 695 which is above average [and I still have one unpaid account that is open...] A good credit rating with closed accounts will say "Closed, no late payments", mine all just say "Closed"... Personally I'd like to put my 25 word rebuttal saying "If I need some credit I'll buy it" on my report but the reporting agencies review those comments and won't just publish anything at all... It's possible that, in the current bad economy, employers aren't relying as much on credit ratings as a background check but I don't really know that... Life is too short to let some credit card companies and rating agencies complicate it, f^ck 'em, drop out, you'll be no less happy and if you are married to a materialistic AmeriBitch she'll drop you like a bad habit and you will be even happier then...
I can't stay with relatives where I'm living now. And I'm single so I don't have to worry about anyone leaving me. I'll be able to live on the minimum even if I don't find a job. But, I would'nt be able to pay $1000 for bankruptcy court. What I'm thinking of doing now though is keep on applying for a job and hope that I can make all payments some time next month. I don't have any money to move though. I guess I could change my phone number if I do stop making payments but then the places where I applied for a job won't be able to call.