No credit card payments made for 5 months

[DYLAN150]

Last payments I made was Jan. Phone calls are down to a few a day. I owe 8 creditors and have only receive a total of 4 letters so far. Fico scores dropped from 690 to 450. My local credit union that I owe seem's to be the most aggressive. I have received only 2 settlement offers so far. Ok, so what's next. They turn the account's over to collection agencies? Seem's I like remember something about debt be charged off after 6 months?

[catleg]

It will be charged off when you are 180 days late so if you last paid Jan 1 and you due date is Jan 1, your first missed payment is Feb1, then Mar1 you're 30 days late, Apr1 60 days late, May1 90 days, Jun1 120 days, Jul1 150 days and Aug1 180 days...chargeoff. Except for Amex, which I believe has a different policy, on Feb1 when you don't pay you're then counted 30 late, Mar1 60 late, etc.

Chargeoff just means the bank can no longer count the accrued interest on the account in their P/L statement, instead they have to charge off the accumulated balance against their loss reserves.

It sometimes triggers action that is visible to you but that is unpredictable.

The credit union is a mutual organization ( owned by its members ) which is why they are less forgiving...defaults place their survival into jeopardy. Vs any of the TBTF banks, who just belly up to uncle sam/Benron and say hey more losses here, better give us more money.

[DYLAN150]

Yea today got a letter from Chase: Chase says If I don't pay them, they will charge off my account and turn it over to an attorney who may bring a lawsuit and get a judgment against me and attachment of existing bank account (s). Good luck on the attachment of bank accounts. Oh by the way, I close my chase bank account months ago and other bank accounts too.

[ryan]

Yea today got a letter from Chase: Chase says If I don't pay them, they will charge off my account and turn it over to an attorney who may bring a lawsuit and get a judgment against me and attachment of existing bank account (s). Good luck on the attachment of bank accounts. Oh by the way, I close my chase bank account months ago and other bank accounts too.

Yeh, Chase was first to sue me. They have their own little owned lawyer offices. So they will sue more quickly, to keep the staff busy and justify all the overhead. But, sometimes they can be beat, in certain cases, and I've experienced that.

[shark66]

Chase is nasty...but...

It took them a lot longer than 6 months to sue any of us. More like two years of so, and over that period of time we haven't spoken to them once. Ignored them 10001% all the way.

As much as I tried (and finally gave up quite some time ago) I could never figure out why we got sued on some accounts and not the others. My biggest question mark is a BOA CC with $35K that went past SOL about two months ago, showing as charged off (not resold) on my wife's credit report...

Yet she got sued by Chase on two different accounts, one something like 3K and one 10K...

Good luck to us all.

[catleg]

I'm sure some whiz kid computer models work out who to sue, the same way they decide to grant credit. 1/2 :-)

[sunshinepa]

Yep, they will usually get turned over to collection agencies. But.....since you are pretty much "judgement proof" as you indicated in your previous posts......don't fret too much about it. It's just business to them, we really ain't people to those scum suckers, LOL.