When you default , do CC get to write you off?

[merime]

I owe Citibank a lot of money for credit card debt. I was paying then had 0 income and stopped. They have issued a complaint against me, but no official court date. Being that I can only find a part time job at $9.00 hr , I have to wonder if they will actually take me to court. The only thing I have in my name is joint-a house. Would citi and other cc get a write off?? How does that work on their side?? Thank you for any answers!!

[gacreditguy]

I owe Citibank a lot of money for credit card debt. I was paying then had 0 income and stopped. They have issued a complaint against me, but no official court date. Being that I can only find a part time job at $9.00 hr , I have to wonder if they will actually take me to court. The only thing I have in my name is joint-a house. Would citi and other cc get a write off?? How does that work on their side?? Thank you for any answers!!

First and foremost OP, my heart goes out to you on the employment issue. We are in a tough time here and will recover one day...

You noted that Citi has issued a complaint. Were you serverd a summons and complaint via the court system? Let us know so that we are sure on this notation as we can provide additional input for you.

At 90-days the original creditor will write this off (and will be completed within 120-days). At that point the debt will either go to an outside collection agency assigned by Citi or sold off to a JDB and they in turn will try and collect on it.

[merime]

Thank you, yes. I was served a summons and have a Jan 31 court date.

[gacreditguy]

Thank you, yes. I was served a summons and have a Jan 31 court date.

BE SURE that you file an answer with the court in the time noted on the summons

[treehugger1]

Hmm...

Some questions/comments:

1) What state are you located in? It could cost you a significant amount of money to answer a complaint. For instance here in Oregon, if the suit is filed in district court, it costs about $200 to file an answer, money to serve the answer on the plaintiff's counsel, money to file any motions or replies to motions, etc. In some states an answer costs you nothing. Unless you are trying to buy a bit more time, answering a complaint where OC is the plaintiff may be a deadend street and only tack on more costs to what you owe.

2) Citi will most likely have their attorney proceed. To get a feel for lawsuits by Citi in your district you should be able to go to your local courhouse and pull some court files related to Citibank lawsuits and get a feel for any processes involved.

Just my opinion. I'm no attorney. But I have been sued for debt many times since 2006. All suits were from original creditors for debts that could have been easily proven to be mine.

I might answer a complaint from a JDB who has purchased a debt, but so far no JDB has filed suit.

[merime]

You were? How does court go? Iam in NC , so no it did not cost me to file an answer. Iam so scared silly, that my entire day is just one big panic attack. I have nightmares of people chasing me. It is a horrible way to live. Thanks for the support!!

[treehugger1]

merime, My situation is not that of the general member of this forum. I am a high-wage earner with massive student loan debts. I never answered a lawsuit filed in my district court. In all cases, the plaintiffs got a default judgment. They can garnish up to 10% of my takehome salary. It is not a big deal for me. I have a 15% permanent student loan garnishment. The student loans are like taxes; they must be paid. As a result, this leaves only 10% of take-home pay left for garnishment.

Once I knew I was either going to file for bankruptcy or stop paying unsecured debt, I read everything I could related to my state laws and exemptions. After I realized I had only wages at stake, and I could survive on 75% of wages, I slept better at night.

In the beginning, it was not easy. Phone calls were endless. But I also educated myself about federal and state debt collection laws and learned to shut down the calls from CA's (state laws also apply to oreginal creditors here.) I learned to screen my calls and make use of other phone systems (VOIP, Google Voice, etc.) This didn't stop the lawsuits, but I slept better I, too, have a conscience.