Can credit card debt be wiped out without bankruptcy or paying it off?

Technically, the answer is yes. Here's how it works. The debt stays on your credit for 7 years from the date it first became delinquent. Depending on your state, the creditor has only so many years to file a lawsuit to collect the debt. Once that time has passed, they cannot sue, and the debt would be legally uncollectable. So, the debt can be wiped out only by the statute of limitations. It depends on your state. I live in California, and the statute of limitations is four years on a written contract. Some creditors just won't bother suing you. They often send the debt to a collection agency who also might sue you. Do a google search for your state and statute of limitations on written contracts. If they sue you, then forget it because a judgment can be collected for years. In California a judgment can be collected for ten years with ten year renewals after that. Also, if you don't pay a debt, the creditor might do a debt forgiveness by sending a 1099 to the IRS. Whatever debt you did not pay would become taxable income. That happens from time to time. In that case, the creditor is clearly saying that you don't owe the debt.

Here's a pearl of wisdom for you. Take a look at your creditors and make a note of their names. Take those names down to the courthouse and look them up in the plaintiff/defendant civil index. If you see the names in the index as plaintiff numerous times, that means they are likely to sue. Have the clerk pull the files of recent cases to see the nature of them. Keep in mind that collection agencies often do the suing, so if your cards have been charged off (not paid in at least six months), keep all correspondence from collection agencies. Run those names through the index as well. As a general rule, if you get a letter from an attorney or a collection agency from outside of your state, they will not sue. Only an attorney licensed in your state can sue you in your state. That means if you get a letter from an attorney in your state threatening to sue, you can be assured that they will. Not suing you would be harassment under the federal debt collection laws. Federal law requires collection agencies to file lawsuits in the area where you live. It is important to keep all correspondence that you receive. Don't leave them unopened, and don't throw them away. In California, attorneys and collection agencies are required by law to notify you of their intent to sue which means they will. Depending on your state, this might also be the case. If they cite a statute in their letter, look it up and read it. Don't just ignore this stuff. Even if you get sued and get a judgment against you, you can still file Bankruptcy.

In a perfect world, you wouldn't be in this position. If you ran your credit cards up on purpose and are refusing to pay, well, that's on your conscience. If your interest rates are high, close the accounts and ask for a lower rate. Chase will drop your rate to 6% under their Balance Liquidation Plan. I speak from personal experience. People who tell you to just pay your debts and not get out of paying them probably have mom and dad to bail them out every time they get into trouble. I've been through tough times myself. Personally, you'll feel a lot better negotiating with the credit card companies and paying them off. They will lower your rates, but you generally have to close the account. Otherwise it looks like you're just a credit card addict asking for a free ride. Keep in mind that once your cards are charged off as bad debts, it is much harder to negotiate. On the other hand, they will usually take 50% of the balance in a lump sum to settle the account. The only problem is you have to have the cash.

Dream on, dude. You have your two choices right there! Good luck!

No. Any company that says they can do that for you is a scam.

Are you kidding? Even if you DIE somebody's gotta pay it off.

Are you trying to get out of paying your bills? No...pay your debt and stop trying to look for an easy way out.

I think if you never make another payment, there may be a statute of limitations. However, your credit will be ruined and it will be many, many years before anyone will ever give you anything. Think hard about this because you may even have a hard time finding a job and renting an apartment. A lot of employers are checking credit these days to determine the quality of the respective employee and most landlords check credit to determine if you're going to be a good tenant.

This question is for CV
What is the threshold?

www.vrtmg.com/rdeleon

A debt settlement plan mainly involves negotiations with the creditors to reach a reduced payoff balance on debts and that cuts total debt of an individual, sometimes over 50%, with minimum monthly payments.

For your reference http://www.carloan123.net my one of friend had recently consolidated his loan from there with bad credit to pay off all his credit card debts, you can try this source may this could help you.

Yeah. They just put the body in a shallow grave out in a cornfield somewhere.

no. you can negotiate to have some fees taken off if you talk to them about paying off one lump sum but you cant just get it wiped out. That doesnt work. 70% of the american people are in bad credit card debt. if something like that existed a lot of people would be better off than they are

Bankruptcy does not wipe out all debts. It you have tangible goods such as furniture, car etc they can take those back unless you agree to pay a reduced amount each month because they really dont want them back.

Even some personal loans you signed you may have to pay something on if the Loan Company got a slick lawyer that threatens to do something else to you in order to get the clients money.

I gave you what could happen if you file. It nooo to what you actually asked or everyone would be doing it.

yes. i'm trying to clean up my credit report (obviously because of my bad score) so i went to a credit counseling session, and we were talking about my options. and the guy told me that there are some that i could kinda wait on, since they're so old, and i said what do you mean, and he told me that things on your credit report HAVE to taken out after 7 yrs. paid or unpaid. so to answer your question "YES" but the price you're gonna pay is that for the next 7 yrs it's gonna be on it. and it's seven years from when it was reported, not from when you opened it. also, if it went to collections then the date ('REPORTED' date) might change. just letting you know.
I was also told that since i'm in collections and my accounts are old, that some collection agencies might not work with the program that i was trying to do.

You can choose not to pay your credit cards. If your debt is below a certain threshold, you will destroy your credit but the credit card companies won't pursue legal action against you.

Thanks to new laws (some pushed through by the Democratic VP nominee), it is much harder to declare bankrupcy than it used to be. The laws favor the credit card companies in most ways. YOu either pay them back or you won't have credit for a long time.

Good luck!

If you are pretty far behind on your payments, you can try to settle with the companies. Tell them that you can't afford what you owe them and you are trying to avoid bankruptcy. Ask them what they can offer you. if the account has gone to a collections agency, they can probably give you 50% or more off of what you owe. Just make sure that you have an agreement IN WRITING that says that they will report the debt as PAID IN FULL to the credit reporting agencies. Get this in writing before you give them a penny. If you can't get this, don't do it and find a way to pay them off. Good luck!

In theory no but in reality yes. If you are about to declare bankruptcy, you can contact legal aid and they will work with you and your creditors to work out a deal. ie. cut all your debts to a manageable amount with token payments for a fixed term and then you are released of obligation of the rest. It will be a period of payments but it beats Bankruptcy for your credit reference.

NO not even your death will get rid of your credit card debt, it just passes on to your inheritors. Bankruptcy or paying it off are the only way to take care of your debt.

anything is possible.. ;)

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