I owe a lot on credit cards and accs are delinquent?
I owe a lot on credit cards and accs are delinquent. If they go litigation, can they put me to jail? I currently have a job but not making much and I have no houses but a old car worth about 5k.
Also, l want to know what’s the different on my credit report if I settle them now or 3 years later. All I know is that, my credit is going to be bad for long time.
There is no debtors prison in the USA. The most they can do is sue you and take anything you own. They can also get a judgment and garnish your wages until they get their money back. Of course, if you have nothing you are almost judgment proof because if if they win they lose.
When start to pay them back your credit report improves.
see a bankruptcy attorney or try cricketdebt counseling in Oregon, they’re legit. If you settle now, probably not a real big deal, settle via bankruptcy, on credit report for atleast 7 yrs, could impact future large purchases, homes/cars, but , even so, you can still buy a car/home,. Best to get rid of the debt, even if have on credit report and live on cash only basis, you’ll sleep better at night…it won’t go to litigation, the credit card companies will either cut you off and increase interest rates and demand immediate payment, but by then, you’ll be talking to the bankruptcy attorney, easier to pay trustee a fraction of what you owe over next 4-5 years than try to pay credit card debt, esp in this economy. It’ll take about 6 wks to process for bankruptcy and you’ll have more money in the end. Besides, keep yourself safe, what if you lose your job? most bankruptcy attorneys have free initial consults… just do it. Look at what the big companies are getting away with even now? big bonuses, payouts, still making profits and people are still losing jobs, health insurance, savings, etc. look up famous people who have filed bankruptcy. Donald Trump is one, even those big corp are doing it, and still coming out on top.. you’ll go to jail if you write bad checks. if you are paying the company even $20. a month, they’ll just make you miserable w late fees, interest etc.. oh, the collection companies, make money if they can get you to pay, once bankruptcy filed, they can’t pester you anymore, it’ll only last about a week of them calling you, so go to the park, or turn off your ringer…
You will not go to jail.
If they decide to sue you, they could get a court order to garnish 25% of your wages.
Depending on how much you owe, you might consider bankruptcy.
If you wait 3 years, and they have not sued you yet, you may be getting close to the statute of limitations to sue you in your state, and it would not be advised to try to pay them then, because it would re age the debt.
Bankruptcy is your best option. They wont take your car if it’s your only one.They wont take your house and you can even have money in a savings account. I filed in ’03. Best thing I ever did. They didn’t touch my house, cars or savings account.
I recently refinanced my house at 5% My wife and I have newer cars, and my credit score is 700 already.
PS: I live in WI. If it matters.