Can No Longer Pay Credit Cards In Us

[Bob Chittie]

Any advice from fellow Americans here with any similar experience would be greatly appreciated.

Firstly, I'm not a complete loser. I'm owed significant sums of money my a couple people up here. Maybe I am naive for lending it, but that's another story. At the end of the day, without the money that I am owed, it will soon be impossible to make my credit card payments in the US.

So, if I stop making the payments, what can I expect the affect on me to be (apart from terrible credit for the next 7 years) considering that I am over here and return to the US once a year for a brief time? One important point is that I am the owner of a sole proprietorship in the US and I am concerned as to whether this business could continue to operate or if the creditors would hamper my ability to run a business by perhaps reaching into the business accounts when payments are received. Would I need to register the company in a family member's name in order to avoid this?

Any advice is most welcome.

[monitorlizard]

No similar experiences but I know you will have to declare bankruptcy in order for the 7 years rule to apply. Don't apply the bad credit stays on forever! This is a common misunderstanding by people. The credit card companies do not close your account but merely freeze any activity and will send your monthly statements to pay bill. Later they will sell the bad debt to a collection company. They may hassle your business if they have the information that you supplied to the credit card company.

Credit cards are unsecured lines thus not guaranteed by real property, income, and so on. I know for sure your credit history will be ruined until you file for bankruptcy. You will need to hire a bankruptsy lawyer to start the process.

I don't know for sure if it happened or not but Congress was in the process of changing the bankruptsy laws thus making it more difficult to file and wipe out debts. There are many sorts of filings Chapter 7, 11, and 13. I don't think if it is prudent to take any advice on this forum or any person. You need to contact a bankruptsy lawyer. Quite often the first hour or intial consultation is free. You can go online to the many free newspapers and get one that specializes in this field. They are really competitve. Check LA WEEKLY and so on. Don't know where your business is located.

The credit cards will need a judgment to garnish wages and so on. They will need to file court papers and serve you with a subponea. It could be very complicated if your are living here.

Additionally, since you own a business, things will be a little messy hence the advice to contact an expert. You better act quickly as I do not know if Congress passed the new bill or not. FYI you will need to make a court appearance (this gives the creditors a change to challange your claim of bankruptsey).

Another option is to contact the consumer credit card agency and make arrangements to pay back. Do a google search. It is a consumer agency funded by the credit card companies but are a non-profit and are run independently of the credit card companies. They can suspend the interest and set up monthly re-payments.

In any case, if you do not file bankruptsy then there is no staute of limitatons. The debt and late payments will be recorded to all the reporting agencies (Equifax, TRW and so on) forever.

There is no debtors prison in the US. No one can do anything do you for owing debt unless your actions were fradulant. However, you may have trouble opening up bank accounts in the US and certainly opening up credit cards in the future. Also, forget about car rentals, renting apartments, and so on when ever someone runs a credit check.

Hope this helps.

[Butterfly]

hey monitorlizard, I don't know if English is your native or primary language, but you should know that "bankruptsey" or "bankruptsy" actually spells "bankruptcy"

Bob, don't fuk with the credit card company. If you have to return to the US because Toxin kick you out, what would you do then ?

also if you fill for Chapter 11 or even Chapter 7 (liquidation) for your business, you will be ban in many states for starting a new business or some other silly rules like this.

You know what to do

[KevinN]

I do not know how much money you owe on your cards,but it must be a substantial amount.

I do know that they will deal with you on the money owed and the amount they will settle for,I had a wife who her and her husband ran bills on credit cards and he was supposed to pay off as stated in their divorce,he didn't do it and they got after me to pay her bills,I refused,and so they offered to settle for 20% if I would pay,I told them that I would not settle under any terms,so they quit bothering me.

And another friend of mine does this quite regular,,he runs up some bills,goes on vacations to Tahiti or Thailand and then when they get on him,he makes a deal and pays off at 25% or some such figure and still has his cards,,I don't think I could get by with it,but I know he does.

Also as monitor lizard stated,,CC bills are unsecured as you must know,so there is not a thing they can do about getting their money if you don't pay,there is no way they can attach your business or anything else,but if you own IRS,they will take everything you got and even get the fillings out of your teeth,and clean out your kids too if that is convenient for them.

But they will ruin your credit and as was stated,there are some things that you need to have a CC for,and car rentals is just one of them.

But you can even file bankruptcy again the IRS,so that is something to remember.

plus state taxes are also included in the things you can file on.

[Bob Chittie]

Thanks guys for all the info. I can't believe that some people get away with paying the cards off at 25% AND still get to keep their line of credit. That would certainly be a nice option. Perhaps I will be paid back by those who owe me, but I'm not holding my breath and will begin putting together a Plan B.

[Bob Chittie]

And another friend of mine does this quite regular,,he runs up some bills,goes on vacations to Tahiti or Thailand and then when they get on him,he makes a deal and pays off at 25% or some such figure and still has his cards,,I don't think I could get by with it,but I know he does.

Any idea how exactly this is accomplished?

[Khun ?]

What is the exact place these people that owe you are. Are they foreigners.

There is easy solutions to foreigners not paying their debts regardless if a business or thai wife is to hide behind. These kind are ending up worse than

the well known backpaker who gets lost in LOS.

[Bob Chittie]

I'm actually owed by the parents of some Thai friends. Definitley a stupid mistake loaning the money... and now I'm left with the consequences...

[Butterfly]

I'm actually owed by the parents of some Thai friends. Definitley a stupid mistake loaning the money... and now I'm left with the consequences...

Rule #1 in LoS: Never lend money to a Thai

Rule #2 in LoS: Never lend money to a Farang

[Guest IT Manager]

hey monitorlizard, I don't know if English is your native or primary language, but you should know that "bankruptsey" or "bankruptsy" actually spells "bankruptcy"

Bob, don't fuk with the credit card company. If you have to return to the US because Toxin kick you out, what would you do then ?

also if you fill for Chapter 11 or even Chapter 7 (liquidation) for your business, you will be ban in many states for starting a new business or some other silly rules like this.

You know what to do

Butterfly...file dear, not fill. Capitalise First words in sentences please. It makes them correct.

Following that, and passing a test, you correct others spelling. Until then....

[Butterfly]

hey monitorlizard, I don't know if English is your native or primary language, but you should know that "bankruptsey" or "bankruptsy" actually spells "bankruptcy"

Bob, don't fuk with the credit card company. If you have to return to the US because Toxin kick you out, what would you do then ?

also if you fill for Chapter 11 or even Chapter 7 (liquidation) for your business, you will be ban in many states for starting a new business or some other silly rules like this.

You know what to do

Butterfly...file dear, not fill. Capitalise First words in sentences please. It makes them correct.

Following that, and passing a test, you correct others spelling. Until then....

hehehe, good catch. I can't believe I didn't see it. Does it count when it is only a typo ?

[HEXtaB]

Here we go again ...

[Nam Kao]

>>>>I'm actually owed by the parents of some Thai friends. Definitley a stupid mistake loaning the money... and now I'm left with the consequences...

For the love of God people - DO NOT LEND ANY $$ over there!

To Thai or Falang !!

Dont even trust your shadow over there!

[Bob Chittie]

>>>>I'm actually owed by the parents of some Thai friends. Definitley a stupid mistake loaning the money... and now I'm left with the consequences...

For the love of God people - DO NOT LEND ANY $$ over there!

To Thai or Falang !!

Dont even trust your shadow over there!

Don't even trust your shadow. I like that one. Yes, I've learned the hard way on this one.

[Khun ?]

Very true never loan money even on a business bases. Be very cautious with

the offshore accounts most are not worth beans and very high expenses and a true hassle to deal with on changing funds and most likely will take months and alot

phone bills to deal with it to cash out . Nothing but spinning your wheels keep your money at home. This is specially true if you need the money to live off of.

A farang that is going to make you money with your money should of done it with his own then he would not need yours. Been there done that just lucky I know the

right people to get it corrected. Treat people with honesty and respect and keep your money in your pocket and Thailand can be wonderful.

Bob Chittie

e-mail me and I may be able to help you get going in the right direction to collect what is owed to you.

[Guest IT Manager]

hey monitorlizard, I don't know if English is your native or primary language, but you should know that "bankruptsey" or "bankruptsy" actually spells "bankruptcy"

Bob, don't fuk with the credit card company. If you have to return to the US because Toxin kick you out, what would you do then ?

also if you fill for Chapter 11 or even Chapter 7 (liquidation) for your business, you will be ban in many states for starting a new business or some other silly rules like this.

You know what to do

Butterfly...file dear, not fill. Capitalise First words in sentences please. It makes them correct.

Following that, and passing a test, you correct others spelling. Until then....

hehehe, good catch. I can't believe I didn't see it. Does it count when it is only a typo ?

Just joking, besides how can I get any brownie points. Have you had a look at the spelling checker for ie6.

Do a google for ie6 spell check. Its a freebie and it is very very good.

Hextab, was the "here we go again" aimed my way, dear?

[mrvietnam2001]

Eva airways back to the States and pay your bills. Amazing you would have to ask but since you did......that's the best advice.

Someone here mentioned "what if" you "have" to go back, what do you do then? That's sound advice too.

Plus, do you think it's "ok" to just burn companies who trusted you? You did it now do the right thing.

It all comes back around.

Mr Vietnam

[randyksf]

The best thing you can to is keep paying them even if it’s only 5 or 10 bucks. If you contact a consumer credit agency back in the states they can work with you to help save your credit. The truth about credit, is each US state has its own interoperation of the laws so there is no right answer.

Or you can simply right them a letter explaining you your financial situation asking them to stop the interests and freeze the account. You have to agree to make some form of regular payment. There is a process for this and it does involve certified letters and such.

If you Business is not paying your credit card debt it might be time to look at going home to get a real job. Not sure of the situation but I can imagine it’s enough money to keep you back that long.

The people who clam that you can save your credit with only paying 25% are dubious at best. Most of the time the will say just pay us $150.00 then not do any good.

My experience is based on someone who had had the credit man calling b4. There are lots of things you can do. Find all your options but keep paying something. .

Like I said “talk to real credit people” not anyone from this board, including me!!!!

[Bob Chittie]

Eva airways back to the States and pay your bills. Amazing you would have to ask but since you did......that's the best advice.

Someone here mentioned "what if" you "have" to go back, what do you do then? That's sound advice too.

Plus, do you think it's "ok" to just burn companies who trusted you? You did it now do the right thing.

It all comes back around.

Mr Vietnam 

Vietnam, I appreciate the advice, but I'm not sure how jumping on a plane back to the US is going to help my situation. Amazing that I would have to ask? There are many different approaches one could take here. I know I'm not the first one to run into probelms with credit cards. So asking was a natural thing to do.

No, I don't think its 'ok' to burn companies who extended me credit. I actually pride myself on never having made a late payment throughout my entire credit history. I also don't think its okay to help friends in financial need only to be stabbed in the back when it comes time to pay me back.

We all know that you are financially secure. Great! I'm happy for you. I've been there too beleive it or not. At present I'm in a bit of a bind due in large part ot my generosity or perhaps stupidity is a better word. Please try to see things from both sides. You may be over here at some point as well.

[Bob Chittie]

The best thing you can to is keep paying them even if it’s only 5 or 10 bucks. If you contact a consumer credit agency back in the states they can work with you to help save your credit. The truth about credit, is each US state has its own interoperation of the laws so there is no right answer.

Or you can simply right them a letter explaining you your financial situation asking them to stop the interests and freeze the account. You have to agree to make some form of regular payment. There is a process for this and it does involve certified letters and such.

If you Business is not paying your credit card debt it might be time to look at going home to get a real job. Not sure of the situation but I can imagine it’s enough money to keep you back that long.

The people who clam that you can save your credit with only paying 25% are dubious at best. Most of the time the will say just pay us $150.00 then not do any good.

My experience is based on someone who had had the credit man calling b4. There are lots of things you can do. Find all your options but keep paying something. .

Like I said “talk to real credit people” not anyone from this board, including me!!!!

Thanks for the sound advice Randy. I have contacted a bankruptcy lawyer and also will be speaking to a consumer credit agency. I neglected to mention that within about 6 or 7 months I will be able to pay the cards way down. Perhaps contrary to popualr belief, I do work. The immediate problem is that I lent money that wasn't returned to me which was to be used to take care of my rather large payments until next June or so. Thanks again.

[randyksf]

Good weigh all your options something that the lawyer will not tell you that if you have a period of 6 months of horrible credit in a year to two you will still be able to buy a house or car.

Also if you have some cards with no debt on them you can simply not use them until you have the ability to pay. So even if they close all accounts that have current debt once you are back on your feet you will have cards to get your rating back.

BK does not allow that (could be wrong)

They charges $500.00 or something for his time. He wants your money so he will try to talk you into it.

I was explained, it’s the difference of two speeding tickets VS a DUI.

If you can pay it off in a year that is more like the speeding tickets. BK is best for people who have a huge debt say 50% of a years income ad the min payment is not manageable or will take years to pay it off. .

Also there are two types of BK, 1 you still have to pay 10% of your total debt. That will stay with you for 7 years. 2 total debt wipeout stays on the credit report for 10 years. (I always get them switched 7, 11, 13 and one is for business only.)

BIG WARNING do not play the transfer game if you can’t start payments. Even a BK lawyer will ask how old is the debt.

Oh something I found if you need t send letters overnight with signatures UPS is about 300 baht less than Fedex you can also save 50 baht by having them pick it up at your house.

[translator]

owed !!!!!!!! wrong word thailand......lossed loan.

[Supersurch]

Bob,

Being late on your payments will not affect your credit unless you are past (30) days. Then your rating starts to decrease as the late payments progress to (60) days and then (90) days. Once it hits (90) days you'll be getting calls and mailings from the collectors.

Since the debts are personal unsecured lines, your business (equipment, receivables, cash, etc.) should not be affected. But, you may have a harder time borrowing money in the states, both professionally and personally. Hard to grow a business when you can't borrow cash.

Unfortunately, I don't have a formula on how many points your credit score will decrease from each late payment, but as they surpass each thirty-day mark it gets even worse.

My solution: Do you still have a house in the states or any other type of property? If so, cash-out refinance on it and consolidate those C.C. Quickly do it before those payments become even more deliquent. Borrowing money against property now-a-days has become very easy in the US. Even with bad credit. Although, you may have to pay a price for it if you have adverse credit.

[Bob Chittie]

Thanks Randy and Supersurch,

Perhaps I can get away with making my payments 59 days late in order to tide me over til mid next year. I'm assuming if I do that and then start to pay them down towards the end of next year, that my credit will take a big hit, but will eventually come back around.

The bankruptcy lawyer said that the debt accumulated in the last year would probably not be eligible and since that is the major issue, BK doesn't seem like the correct option. He also said that they might get a judgement against me and then come after my business or sue me, but that this was unlikely. I wonder just how unlikely...

Unfortuantley, I've been renting in the US. But you're right, it would be a great time to take out a low interest loan against a house and pay down the high interest debt.

Thanks again.

Bob

[Guest IT Manager]

Eva airways back to the States and pay your bills. Amazing you would have to ask but since you did......that's the best advice.

Someone here mentioned "what if" you "have" to go back, what do you do then? That's sound advice too.

Plus, do you think it's "ok" to just burn companies who trusted you? You did it now do the right thing.

It all comes back around.

Mr Vietnam  

Vietnam, I appreciate the advice, but I'm not sure how jumping on a plane back to the US is going to help my situation. Amazing that I would have to ask? There are many different approaches one could take here. I know I'm not the first one to run into probelms with credit cards. So asking was a natural thing to do.

No, I don't think its 'ok' to burn companies who extended me credit. I actually pride myself on never having made a late payment throughout my entire credit history. I also don't think its okay to help friends in financial need only to be stabbed in the back when it comes time to pay me back.

We all know that you are financially secure. Great! I'm happy for you. I've been there too beleive it or not. At present I'm in a bit of a bind due in large part ot my generosity or perhaps stupidity is a better word. Please try to see things from both sides. You may be over here at some point as well.

Never mind Mr Vietdrongo, bob, he isn't the full piece of 8, as the coinies say.

You do what you must and expect no worthwhile advice here, as you won't, overall, get it.

Mr Vietdrongo is actually a credit collector who sees Amex as god.