Stopped Paying CCs and Started Getting Offers for Personal Loans and CCs

[SandyShores]

In June I finally realized it was time to get off the merry-go-round and admit I had to stop using credit cards and stop paying creditors or I'll be homeless. That being said, I made my last full payment in mid July. Today I got a pre-approved offer from Exxon for a gas credit card. Is that normal? This is the first offer I've gotten in a year from anyone.

I, also, more importantly, got a pre-approved offer from CitiFinancial for a $5,000 personal loan. I have a couple of cards through Citi that I stopped paying on (One of the cards has a $14K balance.) and wonder if they are nuts or have something up their sleeve. They have been calling me like clock work since late July. I always talk with them, actually I talk to all my OCs. I'm judgment proof so what have I got to loose. I commit to nothing and tell them to do so would be foolish, unrealistic, and maybe even fraudulent. I even tell them to give me a call in a couple of days to see if things have changed. Blah! Blah! Blah!

So what's up with CitiFinancial? Are they predators?

SandyShores

[bluemartini]

I have a couple of cards through Citi that I stopped paying on (One of the cards has a $14K balance.) and wonder if they are nuts or have something up their sleeve.
SandyShores

I don't know, something similar happened to me. I defaulted on Juniper this past January and over the summer they sent me a new credit card because apparently my old one had expired. I was wondering if it was a trick. Of course I did not activate it!

[lrprn]

If you are intending to file within the next 90 days, then DO NOT apply for new credit. That opens the door to those creditors objecting to discharging the debt when you file.

Keep in mind that just because a company sends an application for new credit doesn't mean you'll automatically get the credit

[SandyShores]

If you are intending to file within the next 90 days, then DO NOT apply for new credit. That opens the door to those creditors objecting to discharging the debt when you file.

Keep in mind that just because a company sends an application for new credit doesn't mean you'll automatically get the credit

Two very good points.

I have no intention on taking either of them up on their offers just because I'm tired of living on credit. But your right on both points.

Credit is like a drug. It alters your perception of reality-that you are not living on borrowed money that you might not be able to ever repay due to any number of things that may or may not happen.

SandyShores

[lifelesson]

We also stopped paying and got offers. Funny thing was while we were keeping (struggling to) up on the payments the CC would offer no help it was after the first 45 days that help was offered. Pretty sick if you ask me.

So now was are a day after our 341 and well I have NO CLUE as to what happens next on our C7. I know objections are 10/23/2009 but other then that I don't know.

Anyone have any clue as to if there is anything else I need to be doing, besides biting my nails and sweating.

Thanks.

[SandyShores]

We also stopped paying and got offers. Funny thing was while we were keeping (struggling to) up on the payments the CC would offer no help it was after the first 45 days that help was offered. Pretty sick if you ask me.

Same here. I noticed that too and I'm less than 30 days past due on most cards. GM was the first to cave. Yesterday, the guy said if I would just pay $26 by the 31st they would not report me as late to the credit bureau as if that matters at this stage. There is no way I'll be able to repay the thousands of dollars I owe due to the mortgage melt-down, dumb choices, and job loss. My credit will soon be in the dumpster any way. One more month won't make me or break me. But, I'm not telling them that.

Good Luck with your BK! Soon you'll be reporting Case Closed!

SandyShores

[splinter]

Pre approved is more of a marketing gimmick. Before I defaulted in 2006, Washington Mutual sent me a pre approved CC invitation. I applied and was denied with a laundry list of reasons, lol. Pre approved only meant I was on their mailing list, because I had a checking account with them in good standing. But that didn't mean they would skip the credit check and automatically approve me. And funny, but after I was turned down, a few months later, can you guess what happened? Yep, they send me another pre approved offer, lol. So I think it's a marketing gimmick. It doesn't mean they skip the credit check or ran the credit check before they sent you the offer.

The gas card offer could be legit, especially, if you just defaulted. They have relaxed standards, so you may still qualify. I defaulted on a Chevron card for under 1k. Interesting that that card has never showed up on my credit report, even when I defaulted. But they're still trying to collect on it.

The Citi Financial offer probably won't go through, when they run the credit check. You're just on their promotional mailing list for various offers. It doesn't mean you're really pre approved and you'll get the loan.

I remember from another thread that you took out 10k in cash advances, so you wanted to wait a year before filing BK. If you don't mind, I'd suggest waiting longer than 1 year before filing. Those cash advances could be trouble. Because all creditors have to do is show you had no reasonable expectation of repaying those advances. So they ask for your income and expenses at the time you took the advances. If they can show you were insolvent, those CC discharges go down the drain. I'm not saying this will happen, if you file in a year. But there's definitely a risk here. The best thing to do might be to figure who is most likely to object, and can you afford to repay those balances. If you can, then roll the dice and file in a year. But if you can't, then maybe wait longer to be safer.

[SandyShores]

I remember from another thread that you took out 10k in cash advances, so you wanted to wait a year before filing BK. If you don't mind, I'd suggest waiting longer than 1 year before filing. Those cash advances could be trouble. Because all creditors have to do is show you had no reasonable expectation of repaying those advances. So they ask for your income and expenses at the time you took the advances. If they can show you were insolvent, those CC discharges go down the drain. I'm not saying this will happen, if you file in a year. But there's definitely a risk here. The best thing to do might be to figure who is most likely to object, and can you afford to repay those balances. If you can, then roll the dice and file in a year. But if you can't, then maybe wait longer to be safer.

Thanks, I have no problem waiting for years if I have to -so far I have been able to deal with the calls and still sleep at night-in fact better because I faced my demons.

You are absolutely right about the "reasonable expectation" part. Filing bk would actually work to my disadvantage, as you pointed out, as opposed to a judgment. At least that is what I'm thinking now. Correct me if I'm wrong.

I live in a state where they have to sue me in superior court to get a judgment and if they do get that judgment then they can only attach 25% of my wages and not even that if I can prove that I need that 25% to survive on. Underwater with mortgage so putting a lien on my house wouldn't get them a plug nicket. Right now I have no income except for unemployment and a small pension-untouchable. Food stamps pays for the groceries. You are right. I'm just going to wait it out. From what I have read on this board, some people have been able to wait so long the SOL takes care of the red ink.

Thanks for everyone's sage advise.

SandyShores