How long does it typically take before a creditor threatens legal action?

[lotsahats]

How long does it typically take before a creditor threatens legal action? Does it usually end up in collections first? How long for that?

It's going to take me a few months to save up for a bankruptcy attorney, and I'm hoping to be able to file before I receive any lawsuit threats.

[lillymarlene]

It took about a year before I received my first summons. My income took a nosedive, and I was no longer able to even make the minimum payments on many of my credit cards. I started the futile routine of balance transfers, cash advances, and robbing Peter to pay Paul. Then, I spent most of 2009 writing debt verification and cease and desist letters to collection agencies. These delaying tactics probably bought me a little time.

Most likely if you have just recently stopped paying and are planning to file within the next few months you should be fairly safe.

Good luck.

[drowning123]

Figure 6 months.

[kornellred]

I am inclined to say that it depends upon the size of each individual debt. Small debts from large creditors are not likely to trigger lawsuits - such debts are quickly sold off, and then collection agencies must try to determine if it would be worthwhile to file suit. It is not unheard of, however. You are looking at close to a year before that happens, if it is going to happen.
Large debts are almost always going to end up in civil court, where money judgments will be awarded to debt owners. Then, they own your hide - until you pay or file for bankruptcy. The swiftness of such proceedings is a variable that cannot be predicted with any accuracy.

[lillymarlene]

I am inclined to say that it depends upon the size of each individual debt. Small debts from large creditors are not likely to trigger lawsuits -

I don't know...the two that decided to sue me after about a year of non-payment were, Bank of America and Capitol One. These were also two of my smallest card balances, each under $4K. I had other cards, some with these same banks, with much higher balances. I felt they were trying to "test the water," to see how things went with these small suits, that the bigger ones were waiting to pounce on me like hungry wolves!

[bk2009]

Discover was super quick, even with just a $2500 balance (that ballooned to $4kish with their "fees").

[Benchracer52]

It took 3 years after I stopped paying on credit cards till the first one filed a lawsuit.

[notalooser]

benchracer52, who filed the lawsuit? a junk debt collector that the credit card company had sold the debt to, or the credit card company itself?

[LadyInTheRed]

How long does it typically take before a creditor threatens legal action? Does it usually end up in collections first? How long for that?

It's going to take me a few months to save up for a bankruptcy attorney, and I'm hoping to be able to file before I receive any lawsuit threats.

Remember that there's a big difference between the time a creditor starts threatening lawsuits and when they actually file a lawsuit. You may receive threats of a lawsuit pretty quickly, but don't let them scare you. You are unlikely to get sued within the first few months of default. If you do get sued, you will have time to file BK before they can get a judgment.

[sunflower71]

Made a partial payment to Capital One in March, stopped paying after that, as I was intending to save up money and make them an offer to settle. Got my summons on Tuesday this week from local law firm on behalf of Capital One. I expect two more to follow, so am meeting with bk attorney on Monday morning.

[mountanddo]

It took about a year from the time I stopped paying my credit card to Capital One (8k) before I received a summons which I received 2 weeks ago. Filing chapter 13 in the next two weeks to avoid 25% garnishment. Interestingly, Sam's club (6k) and Kohls (2k) are not even on my credit report and I stopped pay them at the same time.

[TBA]

I agree with what is already mentioned, as well. It depends on the amount and the creditor. We had an amex with 100k on it (business) and a personal with 25k (all biz expenses) on it. It took about 9 months before they filed against the 100k card, and they didnt file against the 25k card.

Our attorney filed an answer of some sort telling them we would be filing bk - which we did 6 months later. Their case was put on hold, and i will be watching how this shows up on our credit report once it is all said and done. I dont think there is an order to vacate, but there is a pending lawsuit that may be dismissed.

[DYLAN150]

It's been about 7 months for me. I have receive one letter stating they want their money or they will take it to a higher level of collection. From six creditors, I have receive nothing in 7 months. All of my accounts have been removed from the internet so I can't checked on them anymore.

[sunshinepa]

I was sued by Citibank in 6 months. Took it right down to the last day to file an answer to their suit in my local court, then I filed my papers. I believe the days of going a year without being sued are pretty much over, they don't want to wait these days. Just my opinion.

You will have plenty of time even if you do get a notice, generally once you are served papers for the lawsuit, you have 20 days to respond and they can be stalled with a bit of hard work and research. And keep in mind, you will ususally get notified it has been sent to collections, so you can then wait 29 days and request they verify the debt. Those two things gives you at least 50 days or more. Been there and dont that.......LOL.

Keep saving and file ASAP, you will be fine if it's only a few months.

[gosaints]

I had 4 cards, totalling 110K owed. 2 were Bank of America, 1 Chase, 1 MBNA(I think). Money was spread pretty evenly amongst all 4. I was laid off in October 2010 and I quit paying then. Calls started coming in during January. By late April, I was receiving settlement offers. Chase and MBNA were willing to take 25%, which I had the cash for. BOA wouldn't go below 80%, I didn't have the cash to pay them 80%. In May, law firms started calling. I filed may 31st 2011 ahead of any judgements or lawsuits. I returned to work in mid May and knew I'd be ok on the means test as I hadn't worked in months. Just my 2 cents