My situation

[DYLAN150]

Four months behind on credit card payments now. Retired so no wages to garnished. Getting paper checks so no bank accounts to take. Lease automobile. Household goods are under exempted amounts in Washington State. But do own a home but currently has no equity and the way it's going I would have to take a check to the bank at closing to sell the home. I owe Bank of America, Chase, PNC, local credit union, Citi, US Bank, and USAA. A month ago, Bank of America turned my two accounts with them over to a collection agency. I sent them a cease and desist letter and they have not called me since receiving that letter. In fact all phone calls are way down to maybe 1 to 2 a day. I am thinking that when most of these companies turn these accounts over to the collection agencies the phone calls will greatly pick up again. I am ready to sent out C & D letters when the calls start.

Question: Ok, one or several of these companies will get judgments against me. I may have to attend a Debtors exam or two but what effect what these judgments have on me? I don't see anything that they could take. A lot of folks on these boards believe a judgment is the kiss of death, I may be wrong but in my situation I don't see it that way. ( I have offer settlements but can't even get a reply from the banks) Maybe it's to soon. I know this is going to sound funny, but I can't see filing for a chapter 13 and paying for the next five years when maybe that's all the time I have left. Everybody's situation is different, mind is. I don't care about having credit or credit scores. I plan on staying in this house until I leave for the old folks home.

[keepinitreal]

Do you pay your car lease, mortgage, etc. from a bank account that creditors can eventually get to? If not, how do you pay your bills?

If the creditors can't get to an account of yours that has money, I agree you can sit back and let them go for it.

[DYLAN150]

Money orders and can pay cash around town for cable, electric, water, etc.

[PANSYFACE]

Unfortunately, once your credit cards are charged off you will probably get some 1099-cs - cancellation of debt that you would have to address. And - the 2nd, 3rd, & 4th collection bottomfeeders will start to harrass you - my credit report says all original creditors have charged off my debts but now they are sold to really obnoxious people who are calling constantly and don't want to take my attorney's name & phone number.

[bcohen]

Unfortunately, once your credit cards are charged off you will probably get some 1099-cs - cancellation of debt that you would have to address. And - the 2nd, 3rd, & 4th collection bottomfeeders will start to harrass you - my credit report says all original creditors have charged off my debts but now they are sold to really obnoxious people who are calling constantly and don't want to take my attorney's name & phone number.

The only situation in which 1099C's are issued is if the creditor forgives some (or all) of the debt. This does not automatically happen just because the bank "charges off" the debt for accounting purposes and puts a "R9 charge-off" derogatory mark on your credit report. The 1099C will only be issued if you settle the debt for less than the total owed, or if the creditor decides for whatever reason to forgive the debt--which means that they can never attempt to sell or collect that debt ever again. An example of when a creditor might choose to forgive the debt is when a HELOC is completely unsecured because the house is worth less than the first mortgage, and the first forecloses. The second will have no way to collect its debt, and may choose to forgive the balance owed. In any case, if you do get a 1099C, there is a tax form that you fill out, which is essentially an affidavit of insolvency, and will remove your tax liability for the so-called "income" from the forgiven debt.

[frogger]

The only situation in which 1099C's are issued is if the creditor forgives some (or all) of the debt. This does not automatically happen just because the bank "charges off" the debt for accounting purposes and puts a "R9 charge-off" derogatory mark on your credit report. The 1099C will only be issued if you settle the debt for less than the total owed, or if the creditor decides for whatever reason to forgive the debt--which means that they can never attempt to sell or collect that debt ever again. An example of when a creditor might choose to forgive the debt is when a HELOC is completely unsecured because the house is worth less than the first mortgage, and the first forecloses. The second will have no way to collect its debt, and may choose to forgive the balance owed. In any case, if you do get a 1099C, there is a tax form that you fill out, which is essentially an affidavit of insolvency, and will remove your tax liability for the so-called "income" from the forgiven debt.

As stated, a huge difference between a charge off and debt forgiveness. A charge off is nothing more than an accounting technique.

[catleg]

bcohen really hit the ball out of the park here.
Sounds like you've got nothing to worry about.
You've "monetized" your credit score.
Guys like you and TH make us proud.
Beat the banksters at their own game. They hate that.

[feelingnutsy]

Th?

[DYLAN150]

TH = TREEHUGGER1 from OR-E-GUN

[ByeByeCCs]

I guess the only possible future issues are what to do when the car lease is up as far as finding new wheels, with your new credit score I would imagine it would be more difficult to get another lease.

[DYLAN150]

ByeByeCC's. Your 100% right on. My lease is up next year. My son has offered to rent me a car and that might be one option. In Washington state the vechile exemption is around $2500 plus $2000 wildcard. I don't know what kind of car I could get for around $4500 or $5000 but may find out. I also understand there is a possiblity that I can extend my lease for one year without a credit check. I don't know but will find out too. I am open to suggestions.

[catleg]

You may be able to rollover the lease into a loan if you want to keep the car; if you have good payment history with the lender, that may be all they care about. Or they may put you into another lease using the same logic. Car financing is quite unique vs most other lending.

[DYLAN150]

catleg: Yes, over 30 years with the ford credit: never a late payment. BTW: over 30 years with chevron and never a late payment, they just lower my credit limit from $2500 to $100 on my gas card. That's about one tank of gas any more.

[catleg]

I'll bet that Chevron card is now Chase or Citi or GE Money Bank.
Who'd need 2500 on a gas card anyway?
I was shocked that my Exxon gas card (by Citi) allowed cash advances.
Managed to get some repairs done with that little card (only about 1000).

[DYLAN150]

Cat: I think your right about Chevron being GE money now. I also still have my Sears card with a 10k limit on it. Have had them over 30 years. Started out at $300 bucks.