Time line please-Collection Agency-lawyers

[ChrissyF]

I'm sure this has been answered before, but there are so many posts I couldn't find the answer.

I stopped paying Cap One many months ago & it was turned over to a collection agency. How long does a collection agency usually keep these for before turning over to a lawyer?

I live in NY and I'm sure each case is different, just trying to see how much time I have to do something? What I don't know...lol. I have been unemployed since June 2008!

[HHM]

The reason you can't find an answer is that there is no set timeline.

What is more important is your end game scenario for the debt, not the timeline for how soon you might get sued. What are you waiting for?

Some people get sued within 6 months of their first missed payment, some people don't get sued for 2 years, and some people never get sued. On average, if the debt is within the sweet spot of collection $1000-$4000; you can anticipate a lawsuit within 9-14 months after you missed your first payment.

[ChrissyF]

What are you waiting for?

I am not "waiting" I am just trying to save up so I can offer a settlement. I am trying to avoid BK.

[rooster0330]

The reason you can't find an answer is that there is no set timeline.

What is more important is your end game scenario for the debt, not the timeline for how soon you might get sued. What are you waiting for?

Some people get sued within 6 months of their first missed payment, some people don't get sued for 2 years, and some people never get sued. On average, if the debt is within the sweet spot of collection $1000-$4000; you can anticipate a lawsuit within 9-14 months after you missed your first payment.

What happens when you own more, like 10k-20k? I have seen that my lower cards 900-1k they have already turned them over to collections after missing 3 months, all my bigger cards are still with OC? I think my last payment was july/august. What are they waiting for?

[ChrissyF]

What happens when you own more, like 10k-20k?

I owe Cap One about $20K and stop paying several months ago and I just got a call this week from a CA. They will only negotiate with me down to $15K, which I have NO where near that amount to pay them.

[ForumReader]

I owe Cap One about $20K and stop paying several months ago and I just got a call this week from a CA. They will only negotiate with me down to $15K, which I have NO where near that amount to pay them.

One of the problems with these settlement proposals from CAs is that the settled amount has to be paid all in a lump sum or in a couple month's installments. Any forgiven debt from a settled amount is issued as an 1099 to the IRS and that is considered as "income".

[HHM]

What happens when you own more, like 10k-20k? I have seen that my lower cards 900-1k they have already turned them over to collections after missing 3 months, all my bigger cards are still with OC? I think my last payment was july/august. What are they waiting for?

All CC's will be charged off after 6 months of non-payments. So your larger accounts will probably go to collection at that point. But the question is when will you get sued? On larger accounts, the timeline is "usually" longer. Reason being, high dollar lawsuits are low yield (meaning they rarely yield a return for the collection agency/junk debt buyer). Reason being, it is much easier for a person to justify spending $2,000 to file BK over a $20K+ debt then over a $3,000 debt.

But, you could still be sued, but I wouldn't expect it until you have gone through several layers of collection.

[albacore44]

I owe cap 1 on 2 cards, $18K and $6k. stopped paying both in Feb. The $6K went to collections and is now with collections attorney Mitchell N. Kay in New york, which i would guess yours will end up. My $18k went to collections, I sent a DV letter and have not heard a peep. Pretty much what HHM describes. i'm getting ready to file Ch-7 before the end of this month.

[frogger]

Where's that magic 8-ball when you need it?

[catleg]

I've found that the best predictor of lawsuits is whether you have any property (real estate) titled in your name. My wife and I have roughly equal numbers of credit card accounts as individuals, but the lawsuits overwhelmingly went towards my wife's accounts since the house is in her name. If a judgment can be docketed against your real property then it gives the creditor a much stronger card to play against you. (although, not as strong as it used to be when real estate always went up and equity extraction was an ongoing event).

[albacore44]

I've found that the best predictor of lawsuits is whether you have any property (real estate) titled in your name. My wife and I have roughly equal numbers of credit card accounts as individuals, but the lawsuits overwhelmingly went towards my wife's accounts since the house is in her name. If a judgment can be docketed against your real property then it gives the creditor a much stronger card to play against you. (although, not as strong as it used to be when real estate always went up and equity extraction was an ongoing event).

not to be argumentive, but my situation is the reverse. All property is in my name. we have equal amount of cards/balances, all seperate accounts. my wifes went to to collection Att's first. we stopped paying on all accounts about the same time.she is on unemployment, no property in her name at all. Who knows what the key is ??

[keepinitreal]

not to be argumentive, but my situation is the reverse. All property is in my name. we have equal amount of cards/balances, all seperate accounts. my wifes went to to collection Att's first. we stopped paying on all accounts about the same time.she is on unemployment, no property in her name at all. Who knows what the key is ??

Looks like they always go after the wife! j/k

[LostNFound]

My husband and I stopped paying our ccards in Feb 09 and we have about 100K debt. We are real estate owners and have our home plus 5 homes that we rent out. The economy has not been easy on anyone and many tenants are struggling--which forces us to struggle as well. I've honestly HOPED that they would want one of those houses, because they can have it!

However, we have yet to see any judgments against us and I'm not sure why that is? We have assets and our credit was perfect prior to this. We owe about $70K to one creditor and I would assume that it would be worth their time to come after us. But what do I know, I'm not a collector.

I am also trying to avoid bankruptcy...so we are hanging on until the very end. Whatever that may be....

[lrprn]

I am also trying to avoid bankruptcy...so we are hanging on until the very end. Whatever that may be....

Hang out longer if you wish - just do *NOT* touch any of your retirement funds to do so. If you do have to file, these are completely protected. The trustee and the bk court can't touch retirement funds.