Its been over six months since last payments.

[DYLAN150]

Well, it's been six months since I last paid on my charge cards. When I first stop paying I figure I will be sued right away. Nope, not yet. Out of 8 accounts have only received two or three letters saying we will turn this over to our legal department for collection. Received one letter saying if you don't pay we will close your account. I received this one after 4 missed payments. I have only received 3 offers to settle. I have not received anything from B of A in over 4 months. The calls are down to 2 to 3 a day but I am sure it will increase when the accounts are turned over to the C.A's.

[drowning123]

What's your backstory, Dylan? You plannin' on filin'? If you get served with anything, answer it. Don't get default judgments.

[sunshinepa]

My experience, I got hit with the summons in the 9th month. Since you are pretty much "judgement proof" as indicated in previous posts, I really wouldn't worry much until I actually see something. Even then, in your shoes, I doubt I would worry too much!

[rooster0330]

Just finally got served after over 2 years of not paying, yes I said 2 years! So, far we have only received 1 summons, and we are in the process of the suit now! I don't even get phone calls now, once in a great while every other month, I may get one, but tell them I am filing (which I am in the next couple of months) and don't hear from anyone again.

[DYLAN150]

rooster: It's amazing how some people get sued right away and others not for years. Yes, I am not really worring about getting sued. Not much they can do to me. Maybe a debtors exam or two.

[bcohen]

The decision to sue (or not) is largely based on information gleaned from your credit report--whether or not you own any real estate or other major assets than can be liened, whether or not you are currently employed, and whether or not you are still paying other creditors. If your credit report shows that you own real estate, are currently employed, or are still paying other creditors, then the assumption is made that you could keep paying but have chosen not to. Under those circumstances, you can expect a lawsuit within 6 months of default, as the creditor knows they can collect on a judgement.

On the other hand, if your credit report shows no real estate, no current employer, and tons of charge-offs/collection accounts, then the creditor knows you probably don't have any money and cannot pay even if they get a judgement. Under those circumstances, the account will likely be sold to a junk debt buyer who may or may not ever sue.

[bcohen]

BTW, I quit paying on ALL my unsecured debts--including my credit cards, cellphone, and medical bills which I was paying on--back in March of 2009. My credit report is virtually littered with collections and charge-offs, and guess what? Even with tens of thousands of dollars in debt, no one has bothered to sue yet, even two and a half years later! To be sure, several of my debts were placed with law firms--even some in the same city as me--and they send threatening letters for a while and then "fold" like a paper tiger, sending the debt back to the OC. The reason no one has sued is because they know that I live in a rental apartment, do not own any vehicles or investments, and the last employer on my credit report was several employers ago, and in fact no longer in business.

Most collection law firms operate on a contingency basis, which means that the law firm must "front" the cost to sue a delinquent debtor. If the lawsuit results in a judgement and the debtor pays toward this judgement then the law firm receives a percentage of these monies. On the other hand, if the debtor successfully evades garnishment, files for bankruptcy protection, or otherwise ends up paying nothing toward the judgement, then the law firm has eaten the cost of employee time, filing fees and court costs, and so on. So these law firms have to be at least somewhat selective in deciding who to sue!

[IamOld]

Hello bcohen - just for the sake of argument...I have tons of chargeoffs, no pays credit report is toxic. My current employer is NOT on credit report. I am paying mort, and cars (mort is reporting 2 mo late - it is in spouse's Ch 13) - what do you think???

BTW, I quit paying on ALL my unsecured debts--including my credit cards, cellphone, and medical bills which I was paying on--back in March of 2009. My credit report is virtually littered with collections and charge-offs, and guess what? Even with tens of thousands of dollars in debt, no one has bothered to sue yet, even two and a half years later! To be sure, several of my debts were placed with law firms--even some in the same city as me--and they send threatening letters for a while and then "fold" like a paper tiger, sending the debt back to the OC. The reason no one has sued is because they know that I live in a rental apartment, do not own any vehicles or investments, and the last employer on my credit report was several employers ago, and in fact no longer in business.

Most collection law firms operate on a contingency basis, which means that the law firm must "front" the cost to sue a delinquent debtor. If the lawsuit results in a judgement and the debtor pays toward this judgement then the law firm receives a percentage of these monies. On the other hand, if the debtor successfully evades garnishment, files for bankruptcy protection, or otherwise ends up paying nothing toward the judgement, then the law firm has eaten the cost of employee time, filing fees and court costs, and so on. So these law firms have to be at least somewhat selective in deciding who to sue!

[catleg]

I think there might be some value to "correcting" your credit report by purging all employment info, then request your free credit report for reason of "unemployment".

[keepsmiling]

We are coming up on a year now. Wow. Thought we'd be over and done by now but still having to decide between paying health insurance or attorney. Since no suit yet, health is winning. It is, in fact, largely responsible for how we got here in the first place.

Something really needs to be done about the insane price for health insurance, but that's covered in other threads. Went back to school to get some, but they want a year's worth up front this year. Ouch.

[ryan]

BTW, I quit paying on ALL my unsecured debts--including my credit cards, cellphone, and medical bills which I was paying on--back in March of 2009. My credit report is virtually littered with collections and charge-offs, and guess what? Even with tens of thousands of dollars in debt, no one has bothered to sue yet, even two and a half years later! To be sure, several of my debts were placed with law firms--even some in the same city as me--and they send threatening letters for a while and then "fold" like a paper tiger, sending the debt back to the OC. The reason no one has sued is because they know that I live in a rental apartment, do not own any vehicles or investments, and the last employer on my credit report was several employers ago, and in fact no longer in business.

Most collection law firms operate on a contingency basis, which means that the law firm must "front" the cost to sue a delinquent debtor. If the lawsuit results in a judgement and the debtor pays toward this judgement then the law firm receives a percentage of these monies. On the other hand, if the debtor successfully evades garnishment, files for bankruptcy protection, or otherwise ends up paying nothing toward the judgement, then the law firm has eaten the cost of employee time, filing fees and court costs, and so on. So these law firms have to be at least somewhat selective in deciding who to sue!

This is good to know, but not reliable as far as who gets sued.

I fall into the category you described in your posts. No visible means of income/employment for years, owned a house, which was well into FC and very easy for creditor to see. ...and not paying any of the 8 other creditors.

And ........I was sued twice within the first 9 months of non-payment.

I have studied and observed many, many instances of debtors being served/sued and for the most part there is no rhyme or reason. OC's like Chase, with their own in-house collection lawyers, for instance, have no concerns about contingency fees or consistency in selecting who to sue - In fact, the more they sue the better their odds and ROI.

[IamOld]

I think there might be some value to "correcting" your credit report by purging all employment info, then request your free credit report for reason of "unemployment".

That's a great idea - can't hurt! Yet another collection agency "somehow" found my new direct work number....

[jacko]

My situation is similar. Out of a dozen or so creditors, Capital One and my HOA sued for judgment. I'm approaching the 3 yr mark this month after I stopped paying on my first card and the remaining through December.

This is good to know, but not reliable as far as who gets sued.

I fall into the category you described in your posts. No visible means of income/employment for years, owned a house, which was well into FC and very easy for creditor to see. ...and not paying any of the 8 other creditors.

And ........I was sued twice within the first 9 months of non-payment.

I have studied and observed many, many instances of debtors being served/sued and for the most part there is no rhyme or reason. OC's like Chase, with their own in-house collection lawyers, for instance, have no concerns about contingency fees or consistency in selecting who to sue - In fact, the more they sue the better their odds and ROI.

[GoingDown]

rooster: It's amazing how some people get sued right away and others not for years. Yes, I am not really worring about getting sued. Not much they can do to me. Maybe a debtors exam or two.

I think it really does vary from individual to individual.

There are certain protocols that debt collection attorneys follow. I once found a debt collector attorney's website and the part for prospective clients (the creditors) actually said that the attorney would search for employment and assets first, and if there were none, they would ask the creditor for a retainer to cover the costs of any subsequent lawsuit because it would be unlikely for them to get paid even after getting a judgment.

I think if you are truly judgment proof (collection proof) and let them know that you are judgment proof, it gives them a reason to not bother suing you, and rather just put your account on the back burner and try to wait you out by passively monitoring your credit reports for any new activity.

My guess is the vast majority of people who get sued fall into one of these categories:

1. Their creditor is one of the few who doesn't bother doing a search for assets and/or employment before suing. (CapOne?)

2. They have assets and/or verifiable employment (wages to garnish), and the creditor or the collector found them by doing a simple search for them.

3. They communicated on the telephone with the debt collector and made arrangements to make payments, showing that they have some money and are easily manipulated and scared, and the creditor figures a judgment against them will shake lose the money.

And I would like to add, that just because someone sues you, doesn't mean they will ever get paid.

Out of my many, many credit cards, only CapOne ever sued me, and years later, they have not yet collected even one penny of their judgment against me. So, it did them no good. And they have completely stopped calling me about it.

[DYLAN150]

GoingDown: Collection proof: I do have a house but it's now underwater like everyone else in my neighborhood. At least 50K negative. So if they want to put a lien against this, go for it. They can't get a garnishment or bank account, car is a lease. I am well under the state exemptions, so what are they going to do?