What do you think about this opinions needed

[aces67]

I've posted a little about this before but my parents filed Ch 7 it was approximately 5 years ago. Anyway they now have a TON of credit card debt again. They are below the median but of course they can't file a 7 again. They saw a lawyer and his suggestion was a Ch 13 or do nothing. So my parents have decided to do nothing.

They spoke with CCCS about a consolidation program but their budget doesn't have enough money leftover to fund a program.

My mom's theory is this: They will just quit paying all the CC's and eventually the debt will get bought out by a collection agency then maybe they can settle for much less if not they have nothing that can be taken so they just won't pay them.

They had one CC with their bank and my mom didn't tell me that or I would have warned her but the bank ended up taking over $500 out of their savings account to pay for the card.

Anyway is that what you would do? My only problems with this are that some of these cards have a balance of $10K I'm worried a creditor will sue and get judgement for that and once the debts start getting sold out they are going to be really hard to keep up with after that.

Unfortunately they didn't learn anything from their experience. Actually my mom is not the spender it's my dad. He can't control himself at all and my mom just puts up with it.

[bankruptsee]

I'm not sure how fast judgement get pursued, but for me it was like 2 years of trying to collect from me before they got a judgement.

If it were to work out like this for your parents then that would bring them right around 7 years to file ch7 again.

I have read about some creditors/collectors getting aggressive and immediately pursuing a judgement though.

[AngelinaCatHub]

You have just been hamster danced, and I feel very sorry to hear this story. For Dad, this is a sickness and he had already had is "new start". Please take advantage of yours and improve your lives.

There is not much you can do for the folks. Not knowing their ages, if they have nothing that the impending Judgments can take, let them default. THEN they cannot get credit, and will not be able to abuse credit again. This is good. Late, but good.

Please do not get into their problem as I can feel what could happen in your life. You just got yourself up and running. If you attempt to dig them out, you will end up burying yourselves.

This is only a 'gut feeling' but, I think you understand there is not much you can do. A C13 will only cost them and at their age, and lack of control on Dad's part, they need no credit priveleges. I say this in love and respect. 'Hub

[aces67]

Oh I know exactly what you mean. DH and I have no intentions on helping them out financially. They dug their own hole I'm just trying to sort it out and see what their best option is now.

You're right though at least now they can't get credit.

[JRBandCMB]

Aces67;

You didn't say what CC your parents have, but if they have Capital One, they will go for judgment.

My husband and I both had Capital One CC, Capital one stop chasing us, (after 2 years) and now has filed a lawsuit against us, that is why we have to file BK. Matter of fact, I answer their complaint, so it is buying us a little bit of time before we go to court for that, and we are hoping to file for the Bk before we go before the court. I never heard of CC companies going for judgments, but with the way things are now, I am not surprise anymore.

[aces67]

I'm not sure if they have Capital One but I do know they owe Chase $10K.

[JRBandCMB]

I'm not sure if they have Capital One but I do know they owe Chase $10K.

Wow, my CC wasn't that high, matter of fact; with interest and late fees, I owe them around $1,100. And hubby's is only a little bit higher than mine. We even tried checking into debt counseling before thinking going BK, but even with that, the payments were still too high for us to pay off on.

[Nicollette]

I'm not sure how fast judgement get pursued, but for me it was like 2 years of trying to collect from me before they got a judgement.

If it were to work out like this for your parents then that would bring them right around 7 years to file ch7 again.

I have read about some creditors/collectors getting aggressive and immediately pursuing a judgement though.

Its 8 years between two Ch 7 filings, and 4 years between a Ch 7 and 13.

[music12]

aces, i am so sorry to hear this. you just got your discharge yet you have a damper on your happiness.

can you go into your dad's wallet and literally take all cc's away from him? and put some alert on his credit file so that he won't be able to open new credit? forcing him to live on cash might be the only way. there is something about holding the actual cash in your hands that might get him to respect it more. i don't know, just a thought.

[AngelinaCatHub]

aces, i am so sorry to hear this. you just got your discharge yet you have a damper on your happiness.

can you go into your dad's wallet and literally take all cc's away from him? and put some alert on his credit file so that he won't be able to open new credit? forcing him to live on cash might be the only way. there is something about holding the actual cash in your hands that might get him to respect it more. i don't know, just a thought.

Music12: As a super poster as you are, she cannot make her Dad do anything in a legal way. Not unless he is adjudicated as incompetent. As you see above, she is not going to involve herself, and I pray she/they do not. The error of his ways will do this. The best thing possible if that they get cut off. Her Mom realizes this, but she cannot help as the OP stated. I think it will work out just fine for the folks. I just hope that the OP does not suffer in worry. They just got over much worry of their own. I vote to pray for the OP, as the parents had their chance and now circumstance will correct them. Just my opinion. 'Hub

[music12]

'hub, i am not sure it is realistic to think that aces can just let things be. aces will keep worrying about the folks no matter how much we suggest to stay out of it. i am sure aces will not help them out financially, and of course she shouldn't, but completely dissociating oneself from something that involves your parents is darn near impossible.

i don't know what she can do, nor do i really know what i would do, i was just thinking out loud.

[DeadManCrawling]

Sorry to hear this.

Since they are 5 years out from a 7, there is a good chance they can ride this out until 2 more years have passed, and file another 7.

I would suggest waiting until a judgement is pursued and then weigh options.

Do they have any assets or income and accounts that are at risk? Even with a judgement, there are generally limits on how much can be garnished as a percentage of income. Letting them garnish for a few months may allow your parents to get to a point where they can file another 7.

As an alternate idea, they could wait for a judgement, then file a 13, and later convert to a 7, once enough time has elapsed, if it makes sense to do so.

I am in a similar situation with my dad in law, but he has some assets to protect this time, so we are proceeding very carefully and working with a great attorney.

[DeadManCrawling]

One other thing:

I doubt that the balances have much to do with how they decide to sue. I have a great many cards that were all over 10k, with 2 over 30k. They have not sued. I imagine this is because they can look at my credit report and see they have almost no chance of receiving anything meaningful.

My wife had one suit and judgement for a card that we owed 1600 to. Go figure.

We have not paid on any cards in 2.5 years and only have had one suit.

[music12]

btw, if the parents are getting any kind of exempt income - disability, social security, unemployment - make SURE it's in a separate account, not mingled with ANY other money. only that way will it be safe from collection. make sure the account is set up in a way that the bank knows not to touch those moneys.

[aces67]

Thanks everyone! They have no assets and their only form of income is from their jobs. I do hope that my dad will learn something this time around although he probably won't.