Bankruptcy versus ignoring
Date: Fri, 12/10/2010 - 16:18
Total noob here -- could not quickly find the way to sign on as a new user, even!
But, someone close to me had a debt problem that they walked away from. I am curious if this was the best decision.
He had several credit cards, a car loan, etc., and three years ago his employer went out of business, he lost his job and was unable to pay his bills. The car was reposessed and the CC's were charged off. Rather than attempt to work out a specific settlement from each, he moved, changed his phone number, and carried on with his life.
He has not paid nor contacted any of these creditors in the past three years.
For the first year, there was a barrage of mail and phone calls, but a second number change and with the passage of time, they have all but ceased.
I am wondering if it would not be better for him to declare bankruptcy and get a fully fresh start. He found a new job a few months after the old one crashed, but that company, too, went bankrupt in the recession, and now is unemployed again.
He says that, BK would be a last resort if he were sued, but for the moment he has not been. He says since the debt statute of limitations is nearly up on the credit cards (3 years in WA) there is no point.
What do you think?
But, someone close to me had a debt problem that they walked away from. I am curious if this was the best decision.
He had several credit cards, a car loan, etc., and three years ago his employer went out of business, he lost his job and was unable to pay his bills. The car was reposessed and the CC's were charged off. Rather than attempt to work out a specific settlement from each, he moved, changed his phone number, and carried on with his life.
He has not paid nor contacted any of these creditors in the past three years.
For the first year, there was a barrage of mail and phone calls, but a second number change and with the passage of time, they have all but ceased.
I am wondering if it would not be better for him to declare bankruptcy and get a fully fresh start. He found a new job a few months after the old one crashed, but that company, too, went bankrupt in the recession, and now is unemployed again.
He says that, BK would be a last resort if he were sued, but for the moment he has not been. He says since the debt statute of limitations is nearly up on the credit cards (3 years in WA) there is no point.
What do you think?
Greetings, Just my opinion here and others may offer more. If t
Greetings,
Just my opinion here and others may offer more.
If the SOL has expired then that could be it.
But if they have not then.......
It's just a matter of time before a junk debt buyer purchases the stagnant accounts for next to nothing.
Then the skip tracers will definitely find him.
And then the credit hounds will start barking.
Keep us posted as this is very interesting.
Regards,
King "Kash" Jabba Labba
