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riddlebones

Junior Member
What is the name of your state (only U.S. law)? CA

What would happen if a person just stopped making payments on a credit card bill from B of A? That person has a mortgage (home), owns a car and is paying all other bills every month. That person is going to stop paying on the B of A account.

What would be the most likely consequence? Wage garnishment? Lien on the house? Lawsuit?

I'm asking for my co-worker who asked me these questions. I was curious myself. I guess he's got one bill too many and he can't afford it.

Not sure of the balance but I believe it is more than $5,000.
 


single317dad

Senior Member
What is the name of your state (only U.S. law)? CA

What would happen if a person just stopped making payments on a credit card bill from B of A? That person has a mortgage (home), owns a car and is paying all other bills every month. That person is going to stop paying on the B of A account.

What would be the most likely consequence? Wage garnishment? Lien on the house? Lawsuit?

I'm asking for my co-worker who asked me these questions. I was curious myself. I guess he's got one bill too many and he can't afford it.

Not sure of the balance but I believe it is more than $5,000.
First, the cardholder's credit will begin to suffer due to reports of late payments by BofA. This will have the effect of making it more difficult for the debtor to procure additional financing if he's trying to refinance or consolidate. Interest rates on the card -- and possibly other loans depending on contract terms -- will increase. Other costs such as auto insurance may increase. Late fees will begin to accrue.

Next, the account will be closed. No further charges will be allowed on the card, and the entire balance will become due and payable. Other revolving credit cards may also close their accounts with the debtor, seeing that he has become unable to pay his bills. Late fees and administrative fees may equal as much as the original balance at this point.

Later, the account will probably be charged off by the creditor as bad debt. This will allow them to remove the account from their active books and either sell it or collect in court.

Then, someone(s) will call the debtor incessantly. There will have already been many calls and letters, but they'll start in a flood now, because the account was either sold to a junk debt buyer (JDB) for between 1-10% of its face value, or is being pursued by the creditor themselves in court (not as likely for a debt of $5k). The debtor's family and friends will begin receiving calls, and maybe visits in person from agents of the creditor. Legal fees will begin to accumulate.

There will eventually be a case filed in court. Court costs and more legal fees will probably be tacked on to the debt. The debtor will be given a chance to defend himself, by means of an answer to the claim, and standard courtroom procedure. The debtor will most likely fail in the endeavor (if he even tries -- as many as 96% of people never even answer their case or show up in court). A judgment will be entered against the debtor in the total amount of the debt, which is now 2-3 times the original amount owed. The debtor's name will be on public record as someone who hasn't paid his debts.

After court, there will be more hearings. In many places, these are called "proceedings supplemental", and are an attempt by the judgment creditor to examine the debtor's finances. Records will be subpoenaed from the state employment records repository, banks, and financial institutions. The debtor, even if he never showed up for the first court hearings, will now be required to appear and answer questions under oath about his financial situation. If he fails to appear, he may very well be held in contempt and jailed via a body attachment or other measure available to the court.

Once the creditor has the debtor's information, they will determine which assets are available for seizure and/or garnishment, and begin that process. Bank accounts may be frozen. Liens may be placed on property. Personal property may be seized. This will likely continue until the judgment is satisfied.
 

FlyingRon

Senior Member
THey will also call the deadbeat's employers and any other contacts that might have been associated with him. They will appear to be attorneys though they are not but will tell the person to please have the person call. The innocent bystander will not be able to do anything to stop the harrassment because the protection laws protect the deadbeat and not the innocent bystander. I finally had to ditch my telephone number because some deadbeat listed it as his work telephone number (not that this behavior would have been acceptable even if he was employed by me). The debt collection industry (especially National Recovery of Kennesaw, GA, the scumsuckers involved in my case) are slime.
 

single317dad

Senior Member
THey will also call the deadbeat's employers and any other contacts that might have been associated with him. They will appear to be attorneys though they are not but will tell the person to please have the person call. The innocent bystander will not be able to do anything to stop the harrassment because the protection laws protect the deadbeat and not the innocent bystander. I finally had to ditch my telephone number because some deadbeat listed it as his work telephone number (not that this behavior would have been acceptable even if he was employed by me). The debt collection industry (especially National Recovery of Kennesaw, GA, the scumsuckers involved in my case) are slime.
Throw LVNV and Midland in there too; if they ever get ahold of your number, expect the same result.
 

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