Cash Advances
I ran up 13k on my credit card in cash advances. I’m considering not paying it anymore?
I have about 7years of perfect payment history but i decided to let my home go so with that credit hit I think it would be best just to let my credit go completely. What are the implications of not paying my credit card if I don’t pay at all? What about if I wanted to settle for 5-6k?
Your credit score will be trashed. Letting your home go back probably was the death knell, but not paying your credit card debts can lead to judgments which lead to wage garnishments and/or bank account levies. Rather than playing that game and stretching out the period of time when your credit will be hosed, why not consider filing bankruptcy. Your credit will be bad with that, of course, but you can recover from it with time and responsible account management after the fact.
An initial consultation with a bankruptcy attorney is often free and they will be best able to advise you on how you should file. Don’t just ignore debt. It can haunt you for the rest of your life unless you do what is necessary to either pay it off or discharge it via legal channels. And debt settlement can be just as devastating to your credit rating as bankruptcy depending on individual circumstances as well as being a taxable event (you will most likely receive a 1099 from the collection agency or creditor for the difference between the original debt and the settled amount which you must claim as income when you file your taxes). If the accounts have already been charged off and/or sent to collections, they can remain on your credit report for 7 years whether paid off in full or via settlement or not. If judgments appear, they may also remain for 7 years and if unsatisfied, can be renewed indefinitely, theoretically damaging your credit report forever. Chapter 7 bankruptcies remain for 10 years, Chapter 13 for 7 years (most of the time, although there are cases when they can stay for 10 years), but the debts incorporated into the bankruptcy will be gone.