How Long before the lawsuits

[aa06a47]

Today, I received letters from two different credit card companies and one who left a message on my phone to call them. The letters said they were lowering my credit limit and raising my interest rates... I haven't returned the call back from the other one.

Does anybody know once I start getting these types of letters / and phone calls how long before someone files a lawsuit?

I have made it 3 1/2 months since my last cash advance. Most of my credit card interest rates are now around 30%...every bill I get, they rates are going up. One of my cards went from a min payment of 290 to 1650...yes, very unreal (I think 35 of it was a late payment fee).

I do want to put as much time between the advance and the filing date, but seriously doubt I will make it 6 months now.

[StaciMM]

Lawsuits generally do not happen overnight...

From the time you stop paying full minimum payments, the accounts will probably go to collections within 3-6 months. From there-it is anybody's guess. BUT they can't get a judgement overnight. You'll receive a summons or notice of some sort, which will give a few weeks most likely to file an answer.

If you DO get something regarding a court date, then proceed w/ BK. If not-wait.

[katze]

I didn't make any credit card payments for one year befor I filed. Just got alot of phone calls. I had caller ID and didn't answer them.

[edwards2]

katze - how in heaven's name did you survive ONE year before the credit card hounds came after you? I was 30 days past due - had just filed BK - and they were calling me constantly. I am shocked you weren't sued in that length of time.

aa06a47- $290 to $1650?...good grief that is unreal not to mention unfair. Do you mind telling us who the credit card shark is?

[gacreditguy]

aa06a47, can I guess who that credit card was? Chase??

I experienced a similar issue where I was late ONE DAY and they jacked me from 7.9% to 30.24% on not one but both card I had with them. Minimums jumped over $200 more per month combined!

At the time that I filed in late Jan, I was current on all accounts and realized there was no way I would be able to continue to be. I made a proactive decision to file before my credit report was ruined with late payments and so far have been very pleased. Filed a CH7 and no accts have reported late. Credit Score has dropped due to BK appearing but still in the low to mid 600's.

My advise is to be proactive with your decision. Don't let them get to the point of suing you. Take your life back and do what you know will likely happen in the near future anyway. It is a very tough decision to make and not one that I made without weeks of consideration and careful planning.

However, I can honestly tell you, it is the best move I made. I do not regret it and have finally accepted that it WAS the best move I could make.

Good luck to you!!

[SinkingFast]

I guess it is possible to survive a year with no law suits, Edwards.

One attny told us to let the house go, ride it out, and come back in a year to see him. That way we could use the new State's exemptions and wouldn't have to fool with the old state at all.

He felt we could probably make it. If not, and the law suits started, just file BK then. The BK would stop 'em before they could garnish Hubby's wages.

[keepmine]

I quit paying everybody after April of 04. Went into default in May. I told everyone when they called that I was going to file bk. I wasn't belligerent or a smartass or anything. Just made a statement of fact. I didn't file until Oct. Once I told them I wasn't paying, the calls died up. Maybe once a week or so from each creditor.
Now, your mileage may vary here and there are a lot of reasons not to do what I did. But, I wasn't bluffing and I think once my creditors started looking at my reports they KNEW I wasn't bluffing.
Suing is an expensive an inefficent way to collect. The ABA had an artice a few years ago that onlt about 1/3 of all judgments are ever collected.
I'd say you may well make it a year or more before anyone sues. They'll just annoying the heck out of you. That's why God made caller ID an VM!

[StaciMM]

Dh had 1 credit card, I had 2. His was charged off in 2001. Balance at that time was ~$1500. A couple of years later, the OC sold it to someone else. It never was even close to court activity.

My 2 cards were smaller, $600 limits and $1000-1200 balance at the time I filed in 9/05. Last paid on them about a year earlier. Never anything more than standard collection efforts.

[Minnymouth]

I also filed when I was only slightly delinquent on credit cards but they had raised to the 30% interest range on all cards like the "snowball" effect anyways.... when one raised, they all did.....

Medical bills was the main reason for filing....

But by not waiting till they had judgemens and lots of late fees I helped protect my credit score also....

After bankruptcy my credit score was still in the middle 600's (640 or 670)..... course my credit history covers 40 years of excellent credit with lots of accounts closed and paid in full in good standing.....

So bankruptcy really did not damage my credit score very much, brought it down a little bit from the 700's....

[SinkingFast]

That's what I'm kinda hoping for Minny.

We were 690's before we quit making payments. Not bad considering the amount of debt we're carrying.

We've already been hit with late fees. Some CC's have jumped the rates. Others haven't. A couple have gone over limit. All in all, not really bad I don't think, considering there are a bunch of cards and a ton of debt.

I'm hoping if we just get to the 70/90 day mark and file we'll salvage our credit somewhat. 3 or 4 lates per Creditor on a 25 year history of "Pays as Agreed" should help somewhat.

[Minnymouth]

Sinkingfast,

A good past OLD HISTORY works wonders in bankrtupcy..... especially if you have lots of paid in fulls, paid as agreed, and no late payments except in the last 3-4 months...........

REALLY HELPS............

Good luck

[katze]

They came after me right away but I didn't answer their calls. They finally sent them to CA and I didn't answer their calls either. All were charged off after 180 days and they and CA still tried to call. Caller ID is a great invention. I didn't have the money to pay them so there was no use to talk to them. Although I did talk to all of them after missing my first payment and just told them that I didn't have the money to pay them.

[aa06a47]

aa06a47, can I guess who that credit card was? Chase??

I experienced a similar issue where I was late ONE DAY and they jacked me from 7.9% to 30.24% on not one but both card I had with them. Minimums jumped over $200 more per month combined!

At the time that I filed in late Jan, I was current on all accounts and realized there was no way I would be able to continue to be. I made a proactive decision to file before my credit report was ruined with late payments and so far have been very pleased. Filed a CH7 and no accts have reported late. Credit Score has dropped due to BK appearing but still in the low to mid 600's.

My advise is to be proactive with your decision. Don't let them get to the point of suing you. Take your life back and do what you know will likely happen in the near future anyway. It is a very tough decision to make and not one that I made without weeks of consideration and careful planning.

However, I can honestly tell you, it is the best move I made. I do not regret it and have finally accepted that it WAS the best move I could make.

Good luck to you!!

As a matter of fact, it was Chase and also was Citi. The one I got today, which really surprised me was AT&T (I only owed them a small amount, like 1200 bucks,)...they raised my rate to 31.33% for no apparant reason. I have decided to put them in a pile to not pay now.

[annikasaunt]

Similar story here! Interest rates got jacked up to 30% range combined with higher minimum payment requirements...no way I could come close to making everybody happy. The gov't did this to themselves with all the freedom it gives to CC companies. I had to get out before it got really bad.
The calls start at 8 and end at 9PM. We don't answer, caller ID is a great investment! They can't call at work anymore because I told them not to.
I explained to one company that I was going to be filing BK and since his company decided to raise my rate to 30 something percent interest instead of what it was they weren't going to get any money from me now! They would have been better off keeping the payment reasonable and I could have continued to pay them...their loss! (It was Sears by the way) Then they all started doing the same thing...unbelievable. But I do have a decent past credit history. I have paid for 2 previous car loans, CC's, etc. So hopefully they won't challenge me on this!

[AMISLANDER]

I didn't make any credit card payments for one year befor I filed. Just got alot of phone calls. I had caller ID and didn't answer them.

I went three years....but changed addresses a lot, didn't work & was out of the loop...my past credit history was excellent...maybe that's why it took so long?