CC Collection

[13in2010]

Ok, we have the CC companies calling us now - they sure are persistent - but we're just not answering the phone. We've stopped paying them now (we can't afford it). So we're looking at filing in June because we need to get a few things accomplished first - long enough out to include something in the 13, etc.

My question is, how long will it take for the CC companies to sue? If we wait 'till June to file, what are the repurcussions (besides horrible credit, which we know we're going to have anyway)?

TIA.

[Lissy]

In my experience, it will take longer than 5 months of not paying for them to sue you. Some are more aggressive than others. In my case, I stopped paying on 3 of my CCs a little over a year ago. I tried keeping up with the others for awhile, but just couldn't swing the payments on those 3. One of them was Discover, who by far was my most aggressive creditor. After 9 months of no payments, I received a letter from them stating that they were going to take legal action if I didn't pay the balance in full by the end of the month (this was in September). That's when I retained my lawyer and started planning for a 13. On my atty's advice, I called the number on the letter and told them I was filing for bankruptcy. My atty had told me that would most likely stop them from taking legal action, as this costs them money and my filing would stop any lawsuit. They asked me for my lawyer's name and number and which chapter I was filing. I haven't heard a word from them since and as I said, they were my most aggressive creditor. So I think you should be OK.

[13in2010]

Thanks!

[olivies]

We stopped paying in March of 08. In April 09 we got our first, and only, serving from Target. So after a year, just the one creditor had started proceedings. We filed ch 13 in June, they dropped the case.

[flyinbroke]

Depends on the company: Chase, Amex and Discover seem to be the quickest to sue. Also very likely depends on whether they find assets and the potential to seize said assets. Another factor is how much you owe; strangely enough, smaller amounts are MORE likely to be sued for. If you owe under 5K, you are in the strike zone.

In truth there is no real rhyme or reason, but these seem to be the trend I see on net boards and in our court system.

[Lissy]

Another factor is how much you owe; strangely enough, smaller amounts are MORE likely to be sued for. If you owe under 5K, you are in the strike zone.

I've noticed this too and I find it odd. I owe Discover around $7k and they came after me hard and relatively fast. Yet I owe AmEx more than $20k and while I have had a lot of phone calls and mailings, I haven't been so much as threatened with a lawsuit. I have another creditor that has been quite relentless as well, calling first thing in the morning and as late as possible at night, and I only owe them $700. Go figure.

[forgotten]

It might be because smaller amounts are easier to collect on with a judgement?
If they get a $3k judgement they may be able to pull enough money from your bank account and/or wage garnishment.
A $20k judgement/lawsuit on the other hand is more likely to throw someone in to BK, where you spent all those legal fees for no return.

I dunno... just a theroy.

[olivies]

Another factor is how much you owe; strangely enough, smaller amounts are MORE likely to be sued for. If you owe under 5K, you are in the strike zone.

Well, small claims is cheaper to file. Perhaps that's got something to do with it.

[forgotten]

Well, small claims is cheaper to file. Perhaps that's got something to do with it.

Small claims in my state is limited to $1500 (including legal fees), so they can't sue on much!

Oh... and each entity (invidual, or business) is limited to filing 25 cases per year in the state. So its definatly not for big business use here!

[olivies]

Small claims in my state is limited to $1500 (including legal fees), so they can't sue on much!

Oh... and each entity (invidual, or business) is limited to filing 25 cases per year in the state. So its definatly not for big business use here!

So I guess there's another variable- what stat you are in. Small claims here is $5,000.

[flyinbroke]

Small claims here is 10K, but you rarely see many over 5K.

Forgotten, one theory I read is this: if someone bails on 3K it may be thought that "no one will miss it" while if someone bails on 10-20K, they are on the way to BK so not worth it. It could be why GE Money asked if I was behind on everyone after telling them I was not able to put their payment on another CC. They don't need to ask that...they can pull my credit reports like I know they do (BoA, before I quit paying them, pulled my CR 27 times in one month!)

I refuse to get behind on secured stuff, student loans, anything that can be cross collateralized, or with those I save/check with. They are also the ones with low interest rates who work with you if you are in trouble.

[forgotten]

Forgotten, one theory I read is this: if someone bails on 3K it may be thought that "no one will miss it" while if someone bails on 10-20K, they are on the way to BK so not worth it. It could be why GE Money asked if I was behind on everyone after telling them I was not able to put their payment on another CC. They don't need to ask that...they can pull my credit reports like I know they do (BoA, before I quit paying them, pulled my CR 27 times in one month!)

I refuse to get behind on secured stuff, student loans, anything that can be cross collateralized, or with those I save/check with. They are also the ones with low interest rates who work with you if you are in trouble.

That makes sense. 27 times in a month? wow! American Express had 6 different divisions pull my credit after I filed (shows up under 6 different variations on their name), and I thought that was excessive.