Do Larger Debts Always Sue Before The SOL

[CCM620]

So I have a total of 7 credit cards I defaulted on after losing my job. It has been going on 2 years for some, all over a year. My state has a 3 year stature of limitations. Total, I'm looking at over $80,000 for all seven with interest and penalties. I haven't pulled the trigger on bankruptcy because i have remained unemployed for over 2 years, and am now living off of the assisatnace of parents. I have no assets to be lost in a lawsuit (house, car (is a lease) or property) and my state (South Carolina) has a no garnishment of paycheck law when I do become employed. Judgements are on the books for 10 years, and are not renewable. So long story short- bankruptcy attorney told me I had nothing to lose if I don't file. Last couple of months I received my first attempt at a judgement for one of my credit cards from BOA for approx $9,000. I do not plan on contesting it, and it is still pending on my county website. I have 2 or 3 debts larger than this in the 15 to 20k range. I would assume it is a given that if the one for 9k sued, the ones for 15 or 20k would definately sue as well. Visiting this board, its seems people have had different experiences with judgements. So my question is, will I end up being sued by only 1 or 2 or 3 of my cards instead of all seven, or because it is obvious I have nothing to give up, will the others not bother.

[lotsahats]

The answer is: it depends. As you've stated, different people have different experiences. Some creditors, American Express, for one, are more aggressive than others. Some card issuers will leave you alone, because you're judgement proof, while others will attempt to get a judgement anyway, in hopes that your situation will change.

[Floridagail]

I was judgement proof, capital one sued me anyway. after 18mos , I ended filing anyway,,, they wanted my financial records after the judgement. I did not want to show them my pension etc. so I finally filed. feel so much better. A few months later washington mutual sold my debt and they filed suit, Of course I sent them a copy of my bkrptcy discharge to stop them in their tracks.

[shark66]

We never got sued for the largest CC debt (over $32K - probably $35-38 at this point) by BOA and that is now past SOL, was sold to some JDB...good luck on collecting anything on that one, schmucks...

We have been sued for amounts of $4k, $8K and $11K...by JDBs who bought two of our Chase accounts and I can't remember what the third one was.

You'll find that in experience of most people around here one gets sued for smaller amounts far more often than for the large ones...

My $0.02 only...

Good luck to us all.

[DaisysMom]

I have over 20 K in CC and revolving loan debt. I owe Beneficial over 12 K. I haven't made any payments since late 2008 and wouldn't you know it....Crap1 filed suit for the smallest of my debts (just a little over 1 K). So it has forced me into BK, but it also shows there is no rhyme or reason or predicting when or who is gonna pull that trigger. The best plan of action is to get educated about the process and be as ready as possible for whatever happens. That's what I did (mostly through this forum) and I knew exactly what to do. This is an awesome resource with some very helpful and dedicated people who have been in our shoes.

Good luck to you!! DM

[DYLAN150]

No one can forecast who is going to sue you and who is not going to. If they can garnish someone's pay check, that's a big target. I have a lot of credit card debt. I have not paid them in over a year now. I owe Bank of America and Chase the most. I just received 1099's from chase so that's gone. I have not heard from BOA in over 7 months. Dell computer has called me the most and I owe them hardly anything compared to the other creditors. I owe Citi bank about 7K. They sold it and when I received the letter from the JDB, I asked for validation of the debt and added a statement that I am collection proof. It has now been sold to another JDB and I think now another JDB has it. I did received one lawsuit and I answered it with a cert. letter telling them that I was collection proof, have not heard from them since. Sometime back I tried to settle with these banks but they wouldn't even reply to my letters. I am a candidate for a chapter 13, but just thought I would ride it out for awhile and see what happen's. SOL for my state is 6 years, so I have a lot of time left however, I am a senior citizen and may not even see the end of a chapter 13, if I should file for one.

[adams8866]

We got sued on all of the small ones. If they are under 5000 here in FL, they will sue you in small claims court. We got sued by three of them. Two went to court, and we settled on a small monthly payment know that we were going to file for bk. Good luck.

[GoingDown]

The answer is: it depends. As you've stated, different people have different experiences. Some creditors, American Express, for one, are more aggressive than others. Some card issuers will leave you alone, because you're judgement proof, while others will attempt to get a judgement anyway, in hopes that your situation will change.

Yes, this is true. It varies from creditor to creditor and from person to person.

[GoingDown]

I was judgement proof, capital one sued me anyway. after 18mos , I ended filing anyway,,, they wanted my financial records after the judgement. I did not want to show them my pension etc. so I finally filed. feel so much better. A few months later washington mutual sold my debt and they filed suit, Of course I sent them a copy of my bkrptcy discharge to stop them in their tracks.

CapOne is the only one that ever sued me. I think they are perhaps the most aggressive of them all. They sued me, eventhough I was judgment proof, over a tiny balance, before the credit card account even reached the charge off stage.

And I am happy to report that they never got a penny from me for that judgment.

They probably should pay a little bit more attention to whether or not someone is judgment proof before they sue, because in my case, the judgment ended up being worth less than the paper it was printed on.

I personally think that MOST CREDITORS tend to sue over smaller balances than huge ones, because they know a huge judgment will simply force the debtor to file bankruptcy, and then the lawsuit will end up being a waste of their time, effort, and money.

[GoingDown]

No one can forecast who is going to sue you and who is not going to. If they can garnish someone's pay check, that's a big target. I have a lot of credit card debt. I have not paid them in over a year now. I owe Bank of America and Chase the most. I just received 1099's from chase so that's gone. I have not heard from BOA in over 7 months. Dell computer has called me the most and I owe them hardly anything compared to the other creditors. I owe Citi bank about 7K. They sold it and when I received the letter from the JDB, I asked for validation of the debt and added a statement that I am collection proof. It has now been sold to another JDB and I think now another JDB has it. I did received one lawsuit and I answered it with a cert. letter telling them that I was collection proof, have not heard from them since. Sometime back I tried to settle with these banks but they wouldn't even reply to my letters. I am a candidate for a chapter 13, but just thought I would ride it out for awhile and see what happen's. SOL for my state is 6 years, so I have a lot of time left however, I am a senior citizen and may not even see the end of a chapter 13, if I should file for one.

Wow! That seems early to be receiving a 1099-C for Chase. Has it already been 3 years since the account went into default?

It seems like a lot of creditors are going the 1099 route instead of bothering with lawsuits, since they know that with this economy, hardly anyone can actually afford to pay them back.

[tobee43]

never got sued by any of the CC companies...medical expenses yes.

got that correct GoingDown, shoot, if we could pay why wouldn't we. i agree we are seeing many more 1099C's this year.

[DYLAN150]

Goingdown: No, it hasn't been 3 years, it just turned 11 months behind when I received the 1099's. I owed Chase a total of 18K. That includes all their b.s. charges. Now nothing. ( Chase threw in the towel on me. )

[CCM620]

What does getting a 1099 entail. Is that like them writing off the debt and you report the money they forgave on your taxes.

[tobee43]

What does getting a 1099 entail. Is that like them writing off the debt and you report the money they forgave on your taxes.

well, it's more like the lender reporting the loss to the irs. it most never entails any tax ramification for you. with a 1099C you just attach the 982 form and it answers the questions the IRS wants to know. a bit of a pain for you, however, no more than having to pay the debt

[shark66]

Goingdown: No, it hasn't been 3 years, it just turned 11 months behind when I received the 1099's. I owed Chase a total of 18K. That includes all their b.s. charges. Now nothing. ( Chase threw in the towel on me. )

That's what you think - regarding the towel, that is - and I do hope that you're correct.

The fact that you've received a 1099 does not mean that your debt wasn't sold to a JDB who will keep on trying to collect...

Good luck to us all.