When a credit card company lends you money, they basically make a deal that says you pay back the money (with interest) or they will wreck your credit for a while. Some people act like the OP stole the money. OP paid a price for the unpaid debt (low credit score, difficulty getting any additional loans, possibly some trouble getting some jobs/insurance, etc.) that was the original deal. His obligation is done.

Anonymous wrote:Btw if your debt actually ends up forgiven you will get a 1099c. And owe taxes on it.

The old debt is not forgiven - it is just no longer enforceable (creditor cannot sue you). It still exists, arguably (although it is probably more reasonable to argue that non-collectible debt, in fact, has "disappeared" since a debt is a legal obligation to repay a good or service, so there the debt does not exist without the repayment obligation).

Anonymous wrote:

Anonymous wrote:Btw if your debt actually ends up forgiven you will get a 1099c. And owe taxes on it.

Unless it is a disputed account. Or you are insolvent.

What exactly does this mean?

Someone who receives public assistance like welfare or SSI?

Because I have heard that those people usually can get off from paying credit card debts since creditors cannot get any public assistance money like Food Stamps garnished.

Anonymous wrote:

Anonymous wrote:Btw if your debt actually ends up forgiven you will get a 1099c. And owe taxes on it.

Unless it is a disputed account. Or you are insolvent.

You owe it unless you can prove you don't. Doesn't sound like OP is disputing the debt nor is insolvent.

Anonymous wrote:Btw if your debt actually ends up forgiven you will get a 1099c. And owe taxes on it.

Unless it is a disputed account. Or you are insolvent.

Anonymous wrote:

Anonymous wrote:Don't you feel the least bit guilty that you haven't paid these? I feel like it's a crime not to pay your bills, just like your robbed a store.

?!?!?

Well you need to do some reading into how the credit card industry actually works...

For sure, they don't make any money charging interest rates up to 23%!

I do not entirely blame the OP.

The credit card companies are to blame too for extending credit to someone who obviously didn't have the means to afford to pay it back.

Just like the all those shady mortgage lenders who knew back seven or so years ago that all those folks wouldn't be able to afford such high mortgage rates, but were just hoping..

All those creditors are snakes. Ironically they are the ones who got bit in the ass when they lost all their money.

Turn about is fair play.

Anonymous wrote:The debt does not go away, only the ability of the creditor to sue you for the debt. If you want the debt removed from your credit report, you need to pay it. Pay the full amount and don't settle, this would negatively affect your credit.

Wrong
Wrong
Wrong
Wrong

Btw if your debt actually ends up forgiven you will get a 1099c. And owe taxes on it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You older now, you should pay. In your heart you used the money therefore you owe it.

The debt has very likely already been sold to a bulk debt buyer. Let's say OP owed $10,000 on some credit card - a bulk debt buyer would buy that debt for pennies on the dollar and then would go about trying to collect it themselves in order to make a huge profit. OP isn't paying the debt at this point - the credit card company has already sold it and written it off. OP would be paying the bulk debt buyer who would then walk away with a massive profit even if OP settled for $5000. It's a racket and I wish people knew their rights in respect to these matters.

I like you, PP. Let me guess, you work for FTC or CFPB.

I'm just an average Joe who was shocked when I first heard of this practice about 5 years ago. A lot of people who don't make great decisions with credit don't even realize this is what is happening, and these companies prey on people like younger college age kids or recent grads (ps - private student loan debt also can be sold and bought in this same way), seniors, recent immigrants, or people who are basically in poverty anyway. Basically the types of people who are preyed upon by payday lenders and who were preyed upon by predatory mortgage lenders in the past.

Anonymous wrote:Your debt most likely wasn't really substantial to start with since your creditors never obtained a court order to garnish your wages.

That usually happens when people owe large amounts of money. Creditors can get judgments against people's wages and assets unless they file bankruptcy protection.

Walk into Fairfax General District Court any Mon thru Thu at 9:30am and you will see dozens and dozens of these suits. Average debt is $2500 and many are a good deal less.

Your debt most likely wasn't really substantial to start with since your creditors never obtained a court order to garnish your wages.

That usually happens when people owe large amounts of money. Creditors can get judgments against people's wages and assets unless they file bankruptcy protection.

If you agreed to settle w/the attorney who is sending you these letters, you are only shooting your own foot because a). Like people said, you have just re-started the 7 year clock again...Tick-tock. It's just like you now will owe on a debt for until 2021 Baby. and b). Your credit will actually get WORSE because now the debt will re-appear on it. For now, the debt is no longer listed if so much time has surpassed.

Sure, you could always do the "right thing" as folks here are saying by just paying the money back, but it wouldn't be the "right thing" morally, financially or even sensibly since your credit would get screwed and your original creditors wouldn't see a dime at this point since they already cut their losses years ago. The only one who would profit would be the shady attorney who bought out the creditor's debt. Get it??!

I would just chalk it up to a lesson learned.
Only in America, right?

Anonymous wrote:

Anonymous wrote:You older now, you should pay. In your heart you used the money therefore you owe it.

The debt has very likely already been sold to a bulk debt buyer. Let's say OP owed $10,000 on some credit card - a bulk debt buyer would buy that debt for pennies on the dollar and then would go about trying to collect it themselves in order to make a huge profit. OP isn't paying the debt at this point - the credit card company has already sold it and written it off. OP would be paying the bulk debt buyer who would then walk away with a massive profit even if OP settled for $5000. It's a racket and I wish people knew their rights in respect to these matters.

I like you, PP. Let me guess, you work for FTC or CFPB.

Anonymous wrote:You older now, you should pay. In your heart you used the money therefore you owe it.

The debt has very likely already been sold to a bulk debt buyer. Let's say OP owed $10,000 on some credit card - a bulk debt buyer would buy that debt for pennies on the dollar and then would go about trying to collect it themselves in order to make a huge profit. OP isn't paying the debt at this point - the credit card company has already sold it and written it off. OP would be paying the bulk debt buyer who would then walk away with a massive profit even if OP settled for $5000. It's a racket and I wish people knew their rights in respect to these matters.