[planetz]

I recently read the "do nothing" about unsecured credit card debt approach is the best way for some people.

I used credit cards to be a stock trader made a lot of profits the first year.
Since then I tried to day trade when my last job ended and day trading is harder than holding... so I lost my profits and owe a ton of money to over 10 credit cards over $100,000. :(
I am pretty sure they would be serious about getting it back.
Surprisingly my credit rating is still good as I have never been late on a payment.

I can extract some more of credit out by making purchases or cash advances at higher rates 27% to buy some time (3 months). Surprisingly 2/3 of my debt is at a very low 3.99 to 5.99 fixed rate.

Pretty soon I can't make the $4,000 a month minimum payments and I will be broke also and unemployed.

I don't have assets like a mortgage, or car to take... (Q1. Can they take a guitar I bought 12 years ago?)
I can close my bank accounts and use cash for 7 years maybe renting rooms with no lease and finding cash jobs.

Q2. So if I don't pay them back they can only garnish wages is that right?
Q3. And they don't go breaking legs?
Q4. Are there good states to live in for not getting garnished, how about California or Illinois?
I can lye low for 7 years if needed in other countries also.
Q5. Would they be able to garnish my wages even after 7 years of me not going to court or responding to anything and disappearing?

I just want to start over with zero and get a job and start saving for death with no credit cards. BTW, I could get a decent paying job and try to go through bankruptcy also.

But I want to know all the ramifications of 'doing nothing' in my case.

Q6. Another question... if I lived in a foreign countries and opened a trading account outside the US. Could the credit card companies seize my funds in foreign accounts?
Q7. Last question can they garnish wages for teaching English in Thailand if paid to a local Thailand bank account?

Thanks for any good info. :cool:

[gazelleintense]

Stick your head in the sand and pretend the problem isn't there? How's that working so far?

Do nothing? Where did you read that at? I'd like to avoid the site/person that told you that.

[Fr_Chuck]

1. If you start borrowing money where it can be shown you intended not to pay and/or you had no ability to pay. This can be criminal fraud, and not only face civil issues but criminal issues also.

2. Besides issues in #1, yes if you do not do criminal fruad, all they can do is garnish your wages, attach bank accounts and put liens on properties

3. Normally no leg breaking

4. There are some better states than others, California and Ill are not two of them

Were did you get this 7 year idea, they can hound you for a few years until the SOL starts to run out and then get a judgement, a judgement is good for 10 years, and they can go and get it renewed normally for another 10, so you will have to "lay low" for at least 22 to 25 years to beat the judgements.

And yes, the easiest way to get a judgement against you, is for you not to respond, they basically win and get the judgement automatically if you don't respond

[planetz]

I have not started the "Do Nothing" approach I was just considering it.
Within 2-4 months I will be completely broke and can't pay credit cards.
All the credit card debt in the past 2 years was in trading stocks and I have bank and trading statements to prove this.

Here is one Do Nothing article there are many if you Google: Do Nothing Bankruptcy
Alternatives to Bankruptcy - Findlaw for the Public -

It reads, "Do Nothing...Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you're living simply, with little income and property, and look forward to a similar life in the future, you may be what's known as "judgment proof." This means that anyone who sues you and obtains a court judgment won't be able to collect from you simply because you don't have anything they can legally take.

Except in unusual situations (being a tax protester or willfully failing to pay child support) you can't be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, or Social Security, unemployment, or public assistance benefits.

So, if you don't anticipate having a steady income or property a creditor could grab, bankruptcy is probably not necessary. Your creditors probably won't sue you, because it's unlikely they could collect the judgment. Instead, they'll simply write off your debt and treat it as a deductible business loss for income tax purposes. In several years, the debt will become legally uncollectible. And in seven years, the debt will come off your credit record."

I also read they can only collect or is it reach judgement on you within 6 years since your last payment made. I just thought in 7 years it might be all over but I guess not.

Q1. Given my current situation what are the good states to file bankruptcy in?
Q2. Also, should I get a lawyer first before I stop making payments?
Q3. Or should a lawyer go to court while I am still making payments?
Q4. If unemployed will that be a problem for arguing bankruptcy? (they might say why aren't you working - well that is because I am a full time trader)

Q5. My goal is to start over broke and get a decent garnish free job is that possible?

Thanks so much for any useful replies.

[iAMfromHuntersBar]

The article is saying that you would basically have to live on the poverty line - that the debt collectors can't take what you can't have, so you'd have to be living pretty much hand-to-mouth... but it sounds like you'll have to do that for almost 10 years before the debt is completely wiped!

I'd get some advice from a certified financial advisor whilst you're still in the black, you could go some way to averting a life-long disaster here!

[planetz]

Q1. Given my current situation what are the good states to file bankruptcy in?
Q2. Also, should I get a lawyer first before I stop making payments?
Q3. Or should a lawyer go to court while I am still making payments?
Q4. If unemployed will that be a problem for arguing bankruptcy? (they might say why aren't you working - well that is because I am a full time trader)

Q5. My goal is to start over broke and get a decent garnish free job is that possible?

Thanks so much for any useful replies.

[planetz]

More previously unanswered questions:

Q4b. Are there good states to live in for not getting garnished?
Q6b. Another question... if I lived in a foreign countries and opened a trading account outside the US. Could the credit card companies seize my funds in foreign accounts?
Q7b. Last question can they garnish wages for teaching English in Thailand if paid to a local Thailand bank account?

Thanks for any help... I could use it.