Considering letting accounts go to collections

[dontburnthep]

I am in NC, no garnishment, but levy's allowed. I have no assets. I do own a house, but have stopped paying and vacated. I am in the process of being dismissed from a Chapter 7, due to losing 1K off the means test with the Ransom decision. I am considering attempting settlement instead of trying a new 7 or converting to a 13. From reading, I understand that my wages are safe, but that my bank account is not. I also understand that since I have accounts with many of the biggies- Citi, Chase, Discover, it is likely that I will be sued if I don't successfully settle. Am I crazy for even considering this as an option? We have literally nothing to take but our wages, not even a penny of savings, and I think I've read that one can use pre-paid cards or money paks instead of a bank account.

[GoingDown]

I wouldn't bother settling with them if you have nothing to take, and your wages are exempt from garnishment. I would just make myself as judgment proof [yes, some people call it "collection proof" but I don't care] as possible, change my phone number to a google voice number and a pay as you go cell phone [have the phone calls forwarded from your google voice number to your pay as you go cell phone and screen out all the debt collectors using google voice and never tell anyone what your pay as you go cell phone number is], and wait them out. There is almost nothing they can do to you.

[ryan]

I'd agree with GoingDown, it is workable to do what he suggests, tho cashing large checks can be a problem. But since wage garnishment in NC is not permitted, the creditor is deprived of one of their best weapons. And statistically they won't all sue anyway. So, no I do not think you're crazy for contemplating this option, as I am doing the same thing.

[lovemybugs10]

It depends on what you want. If you were looking to be done with it all by filing bk, then settling might be an option. The longer you wait to offer settlement, the more likely it seems that they accept it. After 18months of not talking to my creditors all of them have been willing to settle with me for 30-40%, in short term payments.

[dontburnthep]

Thank you for the tips. I was hoping to be done with it all filing BK, yes, but since that has failed spectacularly, we're sort of reassessing what we want. We can always file another BK in the future- so we're thinking it might be worth it to just walk away for now instead. Even if we do file another BK, it will be at least 6 months from now because we have to regroup from the filing that has gone down in flames.

If we did take this route, should we go ahead and get direct deposit going to a walmart/money pak card, or wait and see if we get sued? We were only ~45 days past due at the date of filing, and if/once it gets dismissed, we'll be about 90 days past due.

[GoingDown]

Yes, as long as you don't tell them about the Walmart Money Card, they will probably never know about it. For example, I have one judgment against me, and I have been using the Walmart Money Card for years with no problems at all. I will point out that I only keep enough on it to pay my utility bills online and to buy stuff at online stores such as Amazon.com. I use cash and money orders to pay for everything else.

[dontburnthep]

Considering the huge trouble we have gotten ourselves into with credit, a cash only lifestyle is not scary to me. Thanks!