LAST QUESTION>> Regarding credit card situation>>>

[mesa777]

I DO NOT want to file bankruptcy... what is the worst thing that could happen if I simply quit paying my credit card??? I owe around $35,000.00 on a B of A Visa that I used to gamble with...

I own a home in AZ however have zero equity in it. I have money to pay for around 9 months, minimum payments only.. and after that I will be in trouble!

Thanks for everyones opinions here!!!

[WantToBeDebtFre]

I think it depends on which state you live in and I don't know about AZ but the credit card could sue you and get a judgement and then your wages and tax returns could be garnished.

[mesa777]

Right however I would be advised of this in advance and could then file for bankruptcy? Correct? I am sure that once the cc company hears that you will file for bankruptcy that they would not even waste their time... am I correct?? Live in AZ.

[jp2861]

They can't do anything in the short term, other than mess up your credit. Eventually your assets will be at risk. If you don't care about your credit you can play the game until you get called to court, which could be up to a year, more or less depending on the bank. Do you plan on keeping the house? Is your income pretected or can they garnish it? Alot can happen. The best thing is to decide right now what you want to do. If you don't want to file BK then you have to increase your income to cover the CC debt and pay it off, or risk your assets. If your income isn't protected from garnishment they will get some of it eventually. Pay me now, pay me later (with alot of fees and interest hikes), or file.

[Boscoe]

Mesa - Why are you so against filing bk? I know it is a tough concept to get used to, but simply blowing off a credit card bill is not likely to work.

First, you will get late notices, then phone calls, and eventually they will charge off your account and sell it to a collection agency and they will hound you until you say 'uncle'. Count on constant phone calls, day and night, to your work and maybe even to family members.

Then they will sue you for the $35k plus accrued interest.

You should set up meetings with a couple of bk attorneys to get their opinions. But if you have little disposible income now and owe $35k, bk might be your only and best bet.

And you WILL need credit at some point in the future, so I would recommend that you file sooner rather than later. You will get this over faster, plus you will not do as much damage to your credit that if you wait and have the debt "charged off" with 120 late payment notations.

[keepmine]

Right however I would be advised of this in advance and could then file for bankruptcy? Correct? I am sure that once the cc company hears that you will file for bankruptcy that they would not even waste their time... am I correct?? Live in AZ.

They hear the bk threat a few thousand times a day. The costs of a lawsuit that is discharged in bk is just a cost of doing business. The threat of a bk is meaningless.

[guzzie]

hi....hope you make a decision thats right for you ....good luck in whatever you decide.......guzzie

[jp2861]

For 35K they will come after you, bank on it. I don't know what your monthly minimums are, but I'd bet pretty high on 35K. Multiply your monthly payment by nine (the months you say you will pay). That's how much you will throw away if you wait to file in nine months. Like someone else said, you will need a credit card at some time in the future, even if it's for renting a car. Avoiding the situation will get you nowhere.

Another way to look at this is the time frame. Let's say you continue with this plan you have. It could well be 2 years before all the smoke clears and you have finally been sued and wages garnished. Maybe you got a settlement, maybe not. Either way you'll be paying the balance (and taxes on settlement difference, if applicable) for years and years and years. File now...in the same 2 years you're well on your way to rebuilding good credit and nothing to pay.

Like I said earlier, you need to decide now, what to do. Kicking the can down the road will just make matters worse.

Right however I would be advised of this in advance and could then file for bankruptcy? Correct? I am sure that once the cc company hears that you will file for bankruptcy that they would not even waste their time... am I correct?? Live in AZ.

[CindyLou]

bottom line is if you don't get help for your gambling addiction FIRST AND BEFORE YOU DO ANYTHING ELSE you will not solve any of your problems. I can feel your desperation through your postings. I beg you to seek help. I come from family of gambling addicts and know the cycle.

[wellspring]

My advice is to do the bankruptcy now. I had 4 cards that my ex-boyfriend ran up and then we broke up and he left me with it all hanging over my head. (yeah I know, stupid) I walked away from them and it took them 6 years to catch up with me. I just ignored all the letters, changed my phone number, etc. etc. As soon as the statute of limitations was about to run out for them to sue me, wham...I got hit with judgements left and right. And now I sit and think, if I had filed 6 years earlier, I would only have 4 more to go before it's off my credit report, or I could have restarted building my credit much sooner. I wish I had filed sooner, but at the time, I thought no one would come after me for 5 grand a piece on the cards.

[joab]

I've seen banks sue for as little as $1,200. I guarantee they will eventually come after you for $35k.

Yes, a creditor is required to serve you with notice when they sue you, which in principle gives you time to file BK if that's what you plan to do. But I'm aware of at least one case where a debtor's account was garnished before she even knew there was a lawsuit, because the bank "substitute served" whoever was living at her old address then obtained a default judgment when she failed to answer the summons and complaint. I won't go so far as to say they deliberately served her old address, but you can't always count on getting actual notice.

[mesa777]

Thank you for all the information... My main concern at this point is the VERY LARGE $22,000.00 cash advance that was taken out all at once to gamble with.. yes I lost.. I have every bank statement to show that I have a serious gambling problem... I am not trying to committ fraud, ect.. If I was going to do fraud I would have just pocketed the money...

I know that this will look BAD with the bank and the bankruptcy court..

[coma]

What I can say is that it's probably not anything they haven't seen before, and if you can show the pattern of gambling along with showing that you;re seeking help for your addiction, fraud should not be an issue.