What will they do if I stop paying my Credit Card bills?
We just found out today that our plant is closing in January and there aren’t many other jobs around. My credit cards are in a debt consolidation program now and have been for a year, but I still owe about $9000 between the three of them. When my job ends I wont be able to pay them anymore, so what will they do to me?
Also, since I will not be able to pay them anyway, should I go ahead and stop paying them now and save that for food for my kids after I no longer have a paycheck?
Even if I find another job I will have to start over at the bottom and won’t be making enough money to pay these bills and feed my family.
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they can file suit and eventually, when you get a job, take money directly from your paycheck. but, you have to do what you have to do man. if i was in your boat, i might consider bankruptcy. it could take a while to dig out of it, but you might have to consider it.
Go to a lawyer NOW and explain your situation. He or she will give you your best alternative: Chapter 13, or Chapter 7 bankruptcy, or some other solution.
What will happen is not MERELY the fact that your credit will be ruined (because it will) but if you simply stop paying, you’ll be driven right out of your mind with stress over the dunning phone calls and letters you get–and if you continue to do nothing to explain or alleviate it, YOU are the one that is in the wrong, and they can pretty much take anything you have to pay off the debt. GET HELP. Go see a consumer credit counselor (free–DO NOT PAY FOR IT!!) or an attorney. Don’t just quit paying! That is the worst thing you can do.
Your credit card companies may EVEN allow you to suspend payments until you can find another job. They are desperate not to deal with bankruptcies and problems–and will bend over backwards. So TELL THEM FIRST that you are about to be unemployed, then go see a lawyer.
If you stop paying your CC bills they will go to collection agencies. These agencies will send you monthly letters and perhaps call you to ask if you can set-up a payment plan.
The business for collection agencies right now is booming but, collection rates have probably fallen due to the weak economy. If you default on these accounts and can weather their calls and letters, these accounts may drop-off your credit report after seven-years. But, you may never be able to get an account with these lenders again until you pay them off.
You can also offer a compromise to pay-off the accounts. For example, if you owe $1,000 on one account, try offering them $300 to pay it off as a settlement. They would rather get something than nothing in return.
The chances of them suing you is small especially if you are unemployed. A credit card debt is an unsecured debt and it was a chance the credit card company took to lend you money. Unsecured debts tend to hold a low place on a bankruptcy petition. Items high on the list are federal and state taxes along with family support.
Keep your money for your living expenses and certainly call your creditors for your reasons and explain that you will pay them in full when you are in a stronger financial position. Best of luck.
I suggest to find jobs in different city or state now before too late. If not, they can sue you. Maybe you should talk one of your debt consolidation customer service to explain your situation. I am sure they will work something out with you. Good Luck!
yes the worst that can happen is they sue you and force you into bk7 and they get nothing