Generally Speaking, How Long?

[danaf]

How long until the big banks sell off bad credit?

[HHM]

That question is not that simple!

After about 6-8 months of continuous default, the big banks will likely turn over the account to 3rd party collection (which is different than "selling" the account). Most accounts don't get "sold" until 12+ months after initial default. But there are so many factors that go into how a bank determines when to sell a debt, it is difficult to give a generalization.

[danaf]

I asked because I was wondering if it helps a ch 7 case if the debt was sold in terms of objections. Assuming a person can make it that far without judgements.

[HHM]

I asked because I was wondering if it helps a ch 7 case if the debt was sold in terms of objections. Assuming a person can make it that far without judgements.

It doesn't matter, if you did something objectionable, it wouldn't matter if the debt was sold or not.

Granted, the older a debt is, the less likely you are going to get an objection, but keep in mind, OBJECTIONS BY CREDITORS ARE RARE. Creditors cannot simply object because they feel like it; strictly speaking, all creditors would prefer not to have their debt discharge, but in reality there is very little they can do about. You, as the debtor, must do something objectionable, i.e. large balance transfer right before filing BK, major luxury purchase right before filing BK, lying on your credit app (although creditors rarely catch that one), etc.

The debtors that get themselves into trouble in BK are those that "think" they know what they are doing, but really don't, and too prideful to listen to advice.