is it one yr they write it off as bad debt?

[CupOJoe]

What is the name of your state? Pa
Do credit card companies and other creditors have to write off your debt as bad debt if you dont pay anything within a year? Also, if you dont have income and dont really own anything, they cant get a court settlement for future income that you would make down the road can they????

 

[racer72]

Do credit card companies and other creditors have to write off your debt as bad debt if you dont pay anything within a year?

Nope. Depending on the statute of limitation, they have years. And when to charge off the loan is a matter of company policy, not law.

Also, if you dont have income and dont really own anything, they cant get a court settlement for future income that you would make down the road can they????

Oh yes they can. In most states judgments for debt are good for 10 years and can be extended another 10. You could be paying for a debt from last year 19 years from now.

 

[Ladynred]

Actually, FDIC rules say that bad debts (like credit cards) should be written off no later than 180 days of insufficient or non-payment. They can write it off sooner and closed-end loans are typcially written off at 120 days. In most cases, credit card issuers will charge-off as a bad debt at the 180 day mark, a few charge-off earlier.