Credit card debt question?

[rta]

I fit bcohen's description. Unfortunately, I got sued 9 months after defaulting on one particular alleged account. OC has been informed of my collection-proof status but is rabidly pursuing this case. I've demanded all kinds of discovery and have served court orders for further discovery responses, and they have sent rent-a-lawyers to represent them in court. They must have spent at least as much on litigation as the amount they're asking for.

Go figure. Maybe they think I have secret wealth somewhere. Or perhaps they're hopeful that I'll get my life back and start working again, despite age and disability issues.

Well, there's the noo-ku-lar option: BK!

[GoingDown]

I think the people who get sued quickly fall into 3 categories: those who own real estate (regardless of whether it's "underwater" or not), those who have verifiable employment, and those who keep paying some creditors while defaulting on others. If you rent your home, don't have a valid employer listed in your credit report(s), and quit paying all your debts, your chances of being sued go down.

Very nice summary! It seems that this is mainly what they look for when they try to decide whether or not you are worth suing.

[bcohen]

Some of mine were over two years unpaid (before I filed) and I was never sued. I don't know if that's because I'm self-employed or if I was just lucky. I think I read another post here from someone who wasn't sued after four years of nonpayment. But some people are sued a lot sooner.

I think the people who get sued quickly fall into 3 categories: those who own real estate (regardless of whether it's "underwater" or not), those who have verifiable employment, and those who keep paying some creditors while defaulting on others. If you rent your home, don't have a valid employer listed in your credit report(s), and quit paying all your debts, your chances of being sued go down. That has been my experience, as well as the experience of one of my friends who quit paying everything at around the same time I did. He even let a car be repo'd, which was way "underwater" and 3 years later still no lawsuit.

I remember back in January of 2010--a few months after all my debts charged off--a local attorney sent a threatening letter implying his intent to sue. I responded back with a FDCPA dispute letter, and amazingly he sent the required validation, but then started sending settlement letters, which I ignored. He never sued, and the account has since been sold and shuffled to various other JDB's, collection agencies, and law firms, none of which sued. Perhaps the fact that the attorney is less than a mile away, and knows I live in a neighborhood where most of the people are poor and on welfare changed his mind!

[GoingDown]

About a year ago, I also started sending a note stating that I have no assets and a permanent wage garnishment for student loans. I even sent this information a month ago to a local attorney who was obviously fishing for "risk" if he sued me. He quickly backed off when he realized I had no real assets and he could be in line for decades for wage garnishment.

I am now at the 4.5 - 5 year mark for my state's 6-year SOL on my debts. As a result, I have seen a slightly renewed interest in collections. This is especially true of accounts closing in on the SOL date. I can actually promise anything I want to over the phone in Oregon, but unless I make a payment or sign a letter of agreement, I can say anything I want and the SOL will not reset.

Everyone needs to study their own state's SOL laws.

As always, SOL is only a defense. It does not stop a potential lawsuit from occurring. This is why I believe it is often in your favor to suggest you are somewhat knowledgeable about the laws of your state when responding to a debt collector, including attorney collection firms.

I have found this to be true in similar situations.

[GoingDown]

Some of mine were over two years unpaid (before I filed) and I was never sued. I don't know if that's because I'm self-employed or if I was just lucky. I think I read another post here from someone who wasn't sued after four years of nonpayment. But some people are sued a lot sooner.

My guess is that being self-employed had a lot to do with it.

From what I have read on debt collector forums, trying to get a judgment paid by someone who is self-employed is a nightmare for them. They have little interest in spending the time, effort, and money going after someone who is self-employed.

[josephga]

mine will be 3 years in october of non payment. I went 18 months of no contact b4 getting a letter in july and again. in august. they have offered to settle mine for 9500.00 of the almost 24.000. but want it all in 1 payment. yesterday I mailed out a certified letter too them asking to validate the debit. I'm going to set and wait and see what happens. if they do mail me back validating the debit. I'm going too offer them 25% take it or leave it with the understanding they have 30 days to accept or i'll assume its a no and will be filling

[SadPanda]

Some of mine were over two years unpaid (before I filed) and I was never sued. I don't know if that's because I'm self-employed or if I was just lucky. I think I read another post here from someone who wasn't sued after four years of nonpayment. But some people are sued a lot sooner.

[treehugger1]

About a year ago, I also started sending a note stating that I have no assets and a permanent wage garnishment for student loans. I even sent this information a month ago to a local attorney who was obviously fishing for "risk" if he sued me. He quickly backed off when he realized I had no real assets and he could be in line for decades for wage garnishment.

I am now at the 4.5 - 5 year mark for my state's 6-year SOL on my debts. As a result, I have seen a slightly renewed interest in collections. This is especially true of accounts closing in on the SOL date. I can actually promise anything I want to over the phone in Oregon, but unless I make a payment or sign a letter of agreement, I can say anything I want and the SOL will not reset.

Everyone needs to study their own state's SOL laws.

As always, SOL is only a defense. It does not stop a potential lawsuit from occurring. This is why I believe it is often in your favor to suggest you are somewhat knowledgeable about the laws of your state when responding to a debt collector, including attorney collection firms.

[DYLAN150]

I wrote all of my creditors about one year ago and offered to pay 60% of my debt in payments. In total there was about 11 or 12 creditors. Not even one written reply from any of them. U.S. Bank called and left a message on my phone saying thank you for your recent letter but we want all of the balance you owe us and in cash in the next 30 days. Now they have sold that debt to a junk debt buyer for a few cents on the dollar, does that make any sense?

[josephga]

I'm just trying to stall another month or so citi is the only one i owe. I'm mailing out a letter next week asking for validation of the debit. figured that would buy me one month. my parents have offered to give me 5000.00 but thats all they are offering. that would be about just over 20% of my debit. i'm going to offer them that stating they have 30 days too decide or ill borrow the money and file chapter 7 and they will get nothing.. which I will do. surely these people would take 20% over getting nothing..

[CCM620]

Anyone have any evidence that once you get one judgement on the books and the judgement has gone uncollected, that the other creditors will simple leave you alone since the first judgement has priority if you ever do get anything, and seeing that they have not collected anything with the judgement, its obvious you dont have anything to take? I have seen alot of people on here say they have one judgement, but rarely see people with 2, 3, etc. My state is one of the most debtor friendy in the US (no wage garnishment law, judgements expire after 10 years and are not renewable, same exemptions with judgements and bankruptcy) so I would think SC would be a state where this one judgemnet theory might be especially valid?

[GoingDown]

I stopped paying citi in october of 09 still haven't been sued. I got a letter in late mid 2010 offer a 9500.00 settlement on the 24.000 owed. then a bunch of phone calls until i sent a letter stopping the calls. then 2 months ago a new letter came to my parents home then one to my apartment on augs 9th. from a company called credit control LLC
with the same 9500.00 offer. I started my own business thats cash only so I can't see them getting a garnishment from me...

You've got the right idea. Two thumbs up!

[josephga]

I stopped paying citi in october of 09 still haven't been sued. I got a letter in late mid 2010 offer a 9500.00 settlement on the 24.000 owed. then a bunch of phone calls until i sent a letter stopping the calls. then 2 months ago a new letter came to my parents home then one to my apartment on augs 9th. from a company called credit control LLC
with the same 9500.00 offer. I started my own business thats cash only so I can't see them getting a garnishment from me...

[GoingDown]

I forgot to add that now I merely use this letter, since all of my debts are beyond the SOL.

"I demand that you cease and desist from any communication with me. All telephone calls are inconvenient at any time and any location. I revoke any prior authorization you may have had to call my cell phone, and I demand that you never call my cell phone number in accordance with the T.C.P.A. I will tape record all telephone calls from you and use them as evidence against you. The Arizona Statute of Limitations has expired, and if you file a lawsuit against me, I will fight it in court and win, and at that time I will expect you to pay all my court filing fees and legal costs since I have already notified you in writing about the fact that the SOL has expired."

I used to think I had to quote laws and legalese to them, but I now feel it is better to leave it simple and rather general. The letter goes over the head of the phone jockeys and gets to people who know very well what I mean and a simple search of my credit report will reveal that the debts are in deed beyond the SOL. They probably already have this information in their files, and so, for the ones who try to sue people beyond the SOL hoping for a default judgment, they realize that I will fight them in court and they know they will lose anyways, so I think they take my old worthless debt and put it in a different pile, where it may very well never see the light of day again.

This quote says it all...

Keep it simple is the best way to go, quoting laws to them is a waste of time, in my opinion, as they know exactly what the laws are.

[GoingDown]

Yep. CapOne was the only one who sued me, too. They sued me so fast-- before they even charged off-- that I didn't even get the chance to send them a judgment proof letter before they sued me.

They called numerous times, threatened to garnish my wages (ha!), take my car, take my boat (ha! I've never even had a boat!), and various other things. I immediately went out and closed all my checking accounts, etc.

Later, they called asking probing questions like where I worked, where I had a checking account, etc. I just laughed at them and made animal noises and toilet flushing noises and had fun with them. I don't think that was the response they were looking for. They even called relatives asking questions about me, but they never got anywhere, and they never got anything from me.

I considered filing bankruptcy, but the jobs I worked at (mainly construction and yard work) didn't check my credit, and were so temporary that I figured out they would never be able to garnish anything anyways. It wasn't like regular wages. I got paid by check usually, and then I would just go down to the bank it was drawn on and stand in line to cash the checks and then I just kept the cash in a safe location in my rented house. There was no way a creditor could get at it.

They never did the debtor's exam with me. My guess is that hiring an attorney in Phoenix and then paying all the high court fees was more than they wanted to pay to go after someone who had no verifiable employment. I think when they can call you at work, they know they have a live one, someone they can garnish and scare into coughing up the cash and paying them. When they can't find that, they resort mainly to bluffing. I played chicken with them and won.