Need advice for my debts (US bank)
Date: Wed, 04/04/2012 - 13:08
Debt:
I have debts from three different creditors; US bank-visa and premier line card (12k) which is behind minimum payments for 65 days and AMEX/Discover which are in a good shape and I pay off as I spend for my living.
Few days ago, I called USB and explained I am not even able to make a minimum payment at this point, but will try to find a way to pay back. A representative said if I make a minimum payment for this month (already passed two days ago), then they would let me enrolling in a hardship program, otherwise they will report my account delinquency this week to somewhere(?), which will start impacting my credit score.
My situation:
I am not a US citizen or legal resident, but currently have a job under working visa. My legal stay in US will expire Aug 15th (discontinuation of the current employment) and I have to leave US by Aug 29th unless I find a new job. I am originally from Japan.
What I want to do:
I just do not simply want to leave USB debt behind me although I would unlikely come back to US for either a job or living once I go back to my country. I figured that I could make about 3-3.5K by selling my car, some belongings, etc, to pay back US bank, which is only 25-30% of total USB debts.
Questions:
[FONT=Calibri](1) [/FONT]When a delinquent account is usually charged off? Is it 120 days or 180 days behind payment?
[FONT=Calibri](2) [/FONT]Would delinquency on USB debts impact on AMEX/Discover such as involuntary closure of the accounts, increased APR, decreased credit limit, etc?
[FONT=Calibri](3) [/FONT]Should I call USB again and tell them I leave the country soon and offer 3-3.5k for total settlement? Would this help my settlement anyway?
[FONT=Calibri](4) [/FONT]I am currently at PA where wage garnishment is not possible. But, USB still sue me, right?
[FONT=Calibri](5) [/FONT]If USB agrees to settle the debt with my offer, then I assume (learning from this forum) that there will be 1099misc issued likely after I leave the US. If this tax amount is huge and I can’t pay Fed Gov on time (due to either I have no money or physically abroad), this is definitely one thing I like to avoid. Is there any way to prevent an issue of 1099misc by a creditor?
[FONT=Calibri](6) [/FONT]Any experience or heard of settlement with USB? There are not even many posts regarding USB except those few years back.
[FONT=Calibri](7) [/FONT] Any advice and/or suggestions would be much appreciated.
Ans 1. For revolving credit accounts like credit cards, the char
Ans 1. For revolving credit accounts like credit cards, the charge off date is set at the maximum of 180 days. Some banks like Chase and Citi sometimes charge off delinquent accounts after 90 days from the date of delinquency.
Ans 2. Your USB delinquency shouldn't affect your AMEX and Discover accounts. WRONG...IT MAY WELL INCREASE INTEREST AND REDUCE CREDIT LINES.
Ans 3. I wouldn't recommend telling USB that you are leaving the country in after 3 months or so simply because its a pretty big time window and they can fie suit. After you have liquidated all your assets and about a month from leaving the country, you can drop the settlement bomb for good measure.
Ans 4. Yes, USB can still sue you and if they are awarded a judgement, they can put a lien on your assets.
Ans 5. I don't think you will be handed a 1099c post settlement since you are neither a US citizen nor a legal resident. Go through the IRS website or talk to a qualified tax consultant to know what you need to do. WRONG AGAIN...THE POSTER IS AUTHORIZED TO WORK AND THUS PAYS TAXES.
